EU court proposal would allow Finland to restrict online gambling

Advocate General would allow state to prevent gaming on foreign sites

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A proposal for a ruling by the Court of Justice of the European Communities would give Finland the right to restrict gambling on foreign websites. According to a court Advocate General, gambling is not something that needs to be offered freely across national borders.
     While Finns can now place bets on the websites of British gambling companies, for instance, the decision would give states the possibility to block access to foreign games of chance.
     
Advocate General Yves Bot put forward his proposal for a decision three weeks ago, and the court's final ruling is expected in the coming months. Proposals of the Advocate General are not binding on the court, but they often give an indication of what a final decision will be.
     The case involves a dispute over betting in Portugal, and it could prove to be a significant turning point in a long-running controversy over online gambling.
     
“A very important advance decision”, notes Jouni Laiho of the lotteries and firearms unit of the Ministry of the Interior.
     Gaming companies have been calling for freedom to offer games in all EU countries, whereas many European states, including Finland, have wanted to hold on to their gaming monopolies.
     In mainland Finland, gambling operations are restricted to the state-owned lottery and sports gambling company Veikkaus, as well as the Finnish Slot Machine Association, and Fintoto, which organises racetrack gambling.
     There have been complaints that the national monopolies amount to an illegal restriction on competition. Finland defends its system, saying that it helps prevent problems such as compulsive gambling and money laundering. Furthermore, revenues from the games bring hundreds of millions of euros a year to good causes.
     
Jouni Laiho says that the decision could allow the state to actively block access to betting and poker websites in other countries.
     “Germany, France, and Norway have already implemented, or are about to implement such restrictions”, Laiho says.
     Norway has planned to prevent gambling abroad by restricting the transfer of money onto the bank accounts of gaming companies.
     
The proposal is being sharply criticised by gaming companies, who contest the argument that monopoly operators are a safeguard against gambling addiction and other harmful phenomena, noting that there is room for improvement in the activities of the national monopolies.
     “The Slot Machine Association is still allowed to keep 19,000 machines everywhere except old people’s homes and pharmacies”, says Asko Heiskanen, who represents the British company Betfair in Finland.
     Heiskanen notes that Betfair has many ways of preventing harm, including the use of limits on how much money individual gamblers are allowed to lose.


Previously in HS International Edition:
  Call for higher age limits for gambling (13.8.2007)
  Government rejection of Ladbrokes´ gaming licence application upheld by Supreme Administrative Court (9.5.2007)
  European Union takes issue with sports betting monopoly in Finland (22.3.2007)
  Age limits on gambling machines often ignored (10.1.2007)
  European Commission taking gaming monopoly member-states to court over restrictions on gambling operations (15.3.2006)

Links:
  Veikkaus
  Slot Machine Association

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