BRUSSELS - The European Commission took a political gamble on Tuesday by starting legal action against seven countries in a bid to open the betting market across the 25-member bloc to more cross-border competition.
EU Internal Market Commissioner Charlie McCreevy was given the green light by the other 24 commissioners to begin infringement proceedings against Germany, Italy, the Netherlands, Denmark, Sweden, Finland and Hungary.
After giving in to member state demands to exclude betting from a new EU reform to boost cross-border competition in services within the bloc, McCreevy finally played his hand by taking the legal path.
The move was welcomed by the betting industry. The European Betting Association (EBA) said it sent a clear message to customers in the context of rising national protectionism.
EBA represents Europe's largest betting and gambling operations including the market leader, Ladbrokes "Our companies have been heavily involved in lobbying for today's announcement and just hope now that the countries involved will act in a positive manner," an EBA spokesman said. McCreevy's decision confronts EU member states that operate lucrative state-owned or sheltered sports betting services.
Many EU countries have state-owned betting monopolies that can hamper foreign firms from entering their domestic markets and the proposal to open up the industry has met with opposition from member states led by Italy, Germany and Sweden.
"I don't underestimate the sensitivities that exist in many member states on the question of gambling," McCreevy said in a statement, adding he was obliged to act after complaints.
Infringement proceedings can lead to member states being taken to the European Court of Justice (ECJ).
Sweden said it would defend its gambling policies.
"We believe our gambling policy holds water according to the brunt of rules that exist today," Sven-Erik Osterberg, Swedish Minister for Local Government and Financial Markets said.
"I can only note that the European Commission ... wants to question this," he told Reuters.
The ECJ has said in a previous ruling that restrictions which seek to protect consumers must be "consistent and systematic" in how they limit betting activities.
A member state cannot invoke the need to restrict access by citizens to betting services if also encourages them to participate in, for example, state lotteries, it said in a ruling.
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