Austria’s gambling restrictions infringe EU laws, Europe’s highest court said, handing a second victory in as many days to a multi-billion euro betting industry seeking to break domestic monopolies. The verdict by the European Union Court of Justice (ECJ) came a day after it ruled Germany’s gambling rules breach EU law.
The ECJ had in previous cases backed national monopolies. An Austrian court had asked the ECJ whether the country’s gambling rules complied with EU laws after a German national was fined for operating two gaming establishments without a concession from the Austrian authorities.
The Austrian state, which holds a gambling monopoly, requires gambling operators to be based in Austria. Such rules breach EU laws, the Luxembourg-based court said. The ECJ also found fault with the way Austria granted 12 concessions to a single company without a public tender.
“The absence of a competitive procedure when the concessions were granted to Casinos Austria AG does not comply with freedom of establishment and freedom to provide services,” the court said. Lawyers said the latest ruling was encouraging for proponents of a free gambling industry.
“This increases pressure and momentum on national governments to open up national gambling industries. This is a drive towards liberalisation and these types of cases will accelerate this trend,” said a lawyer, who has advised gambling companies but declined to be named.
The European Gaming and Betting Association (EGBA), a lobby whose members include British Internet gambling firm PartyGaming and its Austrian merger partner bwin, welcomed the ruling. “After yesterday’s landmark rulings against Germany, today’s ruling against the Austrian gambling laws confirms once again the position of EU regulated operators,” Sigrid Ligne, EGBA secretary general, said in a statement.
“These recent rulings provide the European Commission with additional legal arguments to pursue infringement procedures against several member states,” she said.
Europe’s gambling industry was worth 82 billion euros last year and is expected to hit 90 billion euros by 2012, according to consultancy H2 Gambling Capital.