Stanleybet launches €1.5bn compensation claim against Italian Government
May 18, 2010
- Liverpool
Liverpool, May 18, 2010 - Stanleybet, Europe's leading retail sports betting company, has today launched a compensation claim for €1.5bn against the Italian Government. The claim, delivered by Stanleybet's lawyers to the Italian Prime Minister's office, is for direct damages, lost earnings, loss of business opportunity and reputational damage (1) over the period 1998 - 2006 during which Stanleybet's access to the Italian market was continuously challenged by measures of Parliament, the Administration and the Judiciary contrary to EU law.
The claim has been prepared using extensive independent legal and economic advice. It is believed to be the largest claim launched by a private enterprise against a Member State in the history of the EU.
The claim is the latest development in a 12-year history of legal challenges going back to May 1998. In 2001, the Government's attempts to prevent Stanleybet's operations led to police raids and closures of hundreds of shops. This resulted in a case ultimately referred to the ECJ which, in the landmark Gambelli ruling (2) of 2003, confirmed Stanleybet's legal right to offer cross-border betting services. Notwithstanding that ruling, Stanleybet has since then been repeatedly denied access to the market and has been forced to fight more than 2,000 cases through the Italian legal system. On more than one occasion, Stanleybet's position has been endorsed by the ECJ and the highest domestic courts, including the Supreme Court and the Council of State.
The ECJ's 2007 Placanica ruling (3) confirmed Stanleybet's right to offer cross-border betting services in Italy through its network of intermediaries. In January 2010, the Supreme Court of Italy, seized of other principal cases in which Stanleybet is the substantive party, made fresh referrals to the ECJ (4) to adjudge the compatibility with EU law of the Bersani concession system introduced in 2006 (5).
Now finally, Stanleybet has chosen to claim compensation for the harm suffered. According to settled EU law, the Member States are liable in damages for their actions and measures in breach of EU law, regardless of the domestic body or authority involved. The ECJ has held that the liability of the Member States does not rule out the personal liability of the public officials involved. Stanleybet will be launching individual damages actions against those officials of the Italian Administration who knowingly participated in the breaches of European law that were at the source of unjust prejudice.
"Today's action is a move of last resort" said John Whittaker, Stanleybet Chief Executive. "We have always been clear about wanting to reach a negotiated solution with the Italian Government. Instead we are still bound to fight what is now a 12 year battle to enforce our legal rights. Winning in the Courts all along the line has not proved enough and we must definitely put this to an end", he continued.
"Despite recent legislative developments which purport to offer change, as a land-based rather than an on-line business we continue to be treated in Italy as an outlaw. Our staff and intermediaries face the risk of arrest and harassment, and shops continue to be seized at the hands of prosecutors and officials. Consumers cannot benefit from the choice and quality offered by a truly open sports betting market. We regret that the circumstances have left us with no alternative" concluded Mr Whittaker.
The damages action is being filed with the Civil Court of Rome. Stanley is represented by an experienced legal team with both European and criminal law skills, and benefitting from the advice of leading counsel and economic experts (3).
- ENDS -
Notes
(1) Claim
The claim totals € 1.533 billion - made up of € 887.2m lost profit, € 29.3m emerging damages (costs), € 362.2 loss of business opportunity (exclusion from new tenders) and € 254.3m damages to Stanleybet's reputation and image.
(2) Gambelli case
On 6 November 2003, the European Court of Justice (ECJ) released its long awaited judgment in Case C243/01 Gambelli. The judgment, which upholds the opinion submitted by Advocate General Alber on 13 March 2003, departed dramatically from the previous restrictive European gaming and betting jurisprudence, and had far-reaching consequences for sports betting in the EU.
The Gambelli decision made it clear that restricting gambling activities to state-licensed undertakings is unlawful if such a decision is based on purely financial grounds. Restrictions can only be justified on public policy grounds if there is an overriding public interest: any restrictions need to be justified, proportionate and applied in a consistent manner by the Member State across the board.
(3) Placanica case
Placanica et al., Joined Cases C-338/04 + C-359/04 + C-360/04.
(4) 2010 Referrals
Joined Cases Costa (C-72/10) + Cifone (C-77/10).
(5) Bersani concessions
Based on legislation passed in 2006 and known after the name of the then Minister of Industry Bersani, public calls for tender were launched to award a substantial number of new sports and horse betting concessions. The award procedures were completed in 2007, thereby expanding supply and the market size chiefly for the sake of increasing tax receipts. It is commonly considered that the Bersani concessions are flawed by new breaches of EU law by favouring incumbents. Stanleybet has again been subject to discrimination and this is the subject matter of the latest referrals to the ECJ.
(6) Legal team
Stanley is represented in the damages case by Avv.s Roberto A. Jacchia, Antonella Terranova and Fabio Ferraro of De Berti Jacchia Franchini Forlani, together with criminal counsel Avv. Daniela Agnello who defends the Stanley intermediaries in the principal cases, and was also part of the defence team before the ECJ in Gambelli and other cases. Leading figure Professor Pietro Rescigno of Rome University advised as special counsel, and Professor Luigi Prosperetti of Milan University led the forensic economists.
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