European Commission taking legal action against Finland over gaming monopoly
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The European Commission started legal action on Tuesday against Finland and six other member-states over gaming monopolies. The Commission suspects that the gaming systems of these countries are in contravention of EU legislation.
The Commission is demanding that Finland provide an explanation within two months whether or not the Finnish gaming monopoly restricts the free movement of services in the European Union. While the request applies to sports betting only, the Commission's purpose is not to dismantle the gaming monopoly or "intervene in the existence of monopolies themselves". The six other member-states are to give similar accounts of their domestic gaming systems.
If the Commission is satisfied with the reports of the member-states, the issue will remain unchanged. On the other hand, if the explanations are not satisfactory, the Commission may urge the member countries to change their legislation. If the dispute cannot be resolved, the Commission will resort to the European Court of Justice.
"We hope that the upcoming reports will convince us, and we can regard the case as closed", said the EU's Commissioner for Internal Market and Services Charlie McCreevy.
In Finland, the only operating licences have been granted to three domestic monopolies, namely Veikkaus, Fintoto, and Raha-automaattiyhdistys (RAY). The Commission started its inquiries, as several sports betting companies have expressed a desire to enter the protected Finnish gaming market.
The European Betting Association (EBA), an association of leading European sports betting operators, was satisfied with the Commission's actions against Finland, Germany, the Netherlands, Hungary, Italy, Denmark, and Sweden.
"We naturally hope that the situation will now change. We wish to get rid of the hypocrisy of the countries upholding gaming monopolies. The politicians of these countries have defended their actions by social concerns, while the state-owned monopolies are advertising their services in order to raise additional revenue to cover public spending", charged Torbjörn Ihre of the EBA.
Finland is not prepared to dismantle its gaming monopoly. Vice President Jussi Isotalo of Veikkaus believes that the betting and gaming services will continue to belong to the state-owned companies whose operations are regulated by the Act on Gaming.
"There have been half a dozen complaints to the European Court of Justice so far, but they have all been dropped", Isotalo concludes. As an earlier larger article (see below) suggested, the lobby on behalf of the monopolies is strong within Parliament, and Finland is unlikely to give up without a fight.
The Commission is demanding that Finland provide an explanation within two months whether or not the Finnish gaming monopoly restricts the free movement of services in the European Union. While the request applies to sports betting only, the Commission's purpose is not to dismantle the gaming monopoly or "intervene in the existence of monopolies themselves". The six other member-states are to give similar accounts of their domestic gaming systems.
If the Commission is satisfied with the reports of the member-states, the issue will remain unchanged. On the other hand, if the explanations are not satisfactory, the Commission may urge the member countries to change their legislation. If the dispute cannot be resolved, the Commission will resort to the European Court of Justice.
"We hope that the upcoming reports will convince us, and we can regard the case as closed", said the EU's Commissioner for Internal Market and Services Charlie McCreevy.
In Finland, the only operating licences have been granted to three domestic monopolies, namely Veikkaus, Fintoto, and Raha-automaattiyhdistys (RAY). The Commission started its inquiries, as several sports betting companies have expressed a desire to enter the protected Finnish gaming market.
The European Betting Association (EBA), an association of leading European sports betting operators, was satisfied with the Commission's actions against Finland, Germany, the Netherlands, Hungary, Italy, Denmark, and Sweden.
"We naturally hope that the situation will now change. We wish to get rid of the hypocrisy of the countries upholding gaming monopolies. The politicians of these countries have defended their actions by social concerns, while the state-owned monopolies are advertising their services in order to raise additional revenue to cover public spending", charged Torbjörn Ihre of the EBA.
Finland is not prepared to dismantle its gaming monopoly. Vice President Jussi Isotalo of Veikkaus believes that the betting and gaming services will continue to belong to the state-owned companies whose operations are regulated by the Act on Gaming.
"There have been half a dozen complaints to the European Court of Justice so far, but they have all been dropped", Isotalo concludes. As an earlier larger article (see below) suggested, the lobby on behalf of the monopolies is strong within Parliament, and Finland is unlikely to give up without a fight.
Helsingin Sanomat