Nov 28, 2007

A single European market for gambling services?

Can EU Member States justify the restrictions to competition on the market for gambling services? Since 2006 the European Commission has opened infringement procedures against twelve member states (including France, Germany and The Netherlands), arguing that state-run monopolies violate basic internal market principles. It is established case law of the European Court of Justice that public interest concerns (such as the prevention of crime and gambling addiction) can justify restrictions, but it is also clear that restrictions have to be suitable to achieve national policy aims, as well as proportionate and consistent. A recent Tilburg conference addressed the question whether member states can prove that their policies satisfy these criteria. It made clear that, in Europe, there is little hard evidence on the relation between gambling activity, crime and problem gambling, and that some member states regulate more addictive forms of gambling less strictly than less dangerous ones. The dispute between the Commission and the member states is therefore likely to continue. On this issue of on-going concern, see the recent discussion paper by Eric van Damme. In addition, a book on its legal aspects was published in 2006; another one, focusing on the economic aspects, is forthcoming.