‘Safeguarding Interests’ by EU May Hamper Slots Growth
The European Court of Justice ruled that any country in the EU can restrict private players from internet slots and gambling if the rationale was to “safeguard the interests of the citizens.” The parties involved in the dispute were BWin.com and Portuguese gambling monopoly. The debate began over Bwin.com’s sponsorship of the Portuguese soccer club Liga. The BWin.com logo was placed on the soccer club’s website and the players’ uniforms. The state charity that possessed the rights to online betting and lottery gambling believed this to be a violation of their territorial property. The monopoly in turn fined Liga and BWin.com.
Previously, the European Court of Justice mandated that free trade could be restricted by a state if its purpose was to protect the public. This rule was applicable in the case of BWin.com and the Portuguese because the Court deemed online gambling to involve a large risk of potential criminal activity or fraud within the society. The winnings of players was substantial, therefore the likelihood of unscrupulous activities were heightened.
In a press release BWin.com stated, “It is difficult for us to understand the rationale that crime is more difficult off-line than online.” The company affirmed their position that their consumer protection and fraud prevention programs were one of the best in the industry and held up well to any competitors’ programs. The Secretary General of the European Gaming and Betting Association, or EGBA, stated, “Several jurisdictions in the EU already prove that it is possible to guarantee a high level of consumer protection and have a well regulated and competitive online gaming market at the same time.”
Despite the decision, BWin.com believes that there is no evidence to substantiate the claim that online slots and online gambling are more susceptible to fraud. They issued a statement that read in part, “This judgment denigrates the online gambling industry.” The online slots industry does have some concern that the European Commission’s decision may force them to change their online policies for gambling in Europe. However, Remote Gaming Association CEO Clive Hawkswood stated, that he believes that though the court made “careless and inflammatory comments” in the ruling, nothing in it should stop the EC from dealing with future improprieties in online slots and gambling.
