Gaming Laws and Advertising Laws in Europe

Latest Developments

Thibault VERBIESTPartner – ULYS

Thibault.verbiest@ulys.netwww.ulys.net

Casino Affiliate Convention Amsterdam, May 3 - 5, 2007

E.U. Legal Framework (I)Influence of European Law on national gaming laws.

EC Treatyarticle 43: free circulation of servicesarticle 49: freedom of establishment

Decisions of European Court of JusticeGambelli, Placanica etc.

EFTA court decision

E.U. Legal Framework (II)

European Commission infringement procedure (under Art.226 of EC Treaty):

1st stage in 2006: Denmark, Finland, Germany, Hungary, Italy, the Netherlands and Sweden.

Complementary letters of formal notice to Germany and Netherlands.

2nd stage in 2007: Reasoned opinions sent to Denmark, Finland and Hungary.

Gaming Laws in Belgium

Draft Games of chance Act Possibility for EU remote gaming operators to obtain

“certificate” with Gaming Commission if fit and proper. All games may be controlled by Gaming Commission. Gaming Commission grants a limited number of licenses. Act was set to be adopted via 2006 Finance Act but

lobbying by National Lottery + some Belgian casinos. Act now undergoing normal legislative procedure. Likely to be adopted after the Belgian elections in June.

Gaming Laws in France (I)

New law (March 2007) measures against private gaming operators.

Fines against “illegal” online gaming operators to be doubled from €30,000 to €60,000 for sports betting and lotteries operators; from €45,000 and €100,000 to €90,000 and €200,000 for horse betting operators.

Fines against “advertisers”: €30,000 + possibility for courts to multiply this fine by four times the amount invested in the advertising expenses.

Gaming Laws in France (II)

ISPs to inform clearly subscribers of the gambling sites which are considered by Home Affairs Ministry as “inappropriate” (“blacklisted”) under sanction of up to a year imprisonment + €75,000 fine.

Banks to stop the flow of funds from individuals or “blacklisted” companies which organise betting or gaming activities.

Gaming Laws in Germany

Decision of the Federal Constitutional Court of 28 March 2006.

Current legal situation not compatible with the freedom to choose one’ s profession (Art. 12 German Constitution).

Transitional period until the end of 2007: State operators have to restrict advertising and care for problem gamblers + temporary relief against prohibition orders.

Infringement proceedings Art. 226 EC Treaty. Projected new Interstate Treaty on Gambling. After Placanica decision, the projected Interstate Treaty

on Gambling will probably be rejected.

Gaming Laws in Italy

Licences already awarded. Decrees implementing 2007 Finance Act. Internet Service Providers forced to block access to not

authorized foreign gambling web sites +criminal penalties. Blacklist drawn up by the AAMS mentions over 600

websites. Infringement procedure.

Gaming Laws in the U.K.

Gambling Act 2005 enters into force in September 2007. Remote and non-remote betting operating licences. License conditions and code of practice. 15% tax on online gaming profits.

What next?

Infringement procedures may result in new ECJ cases. Progressive opening of regulated (licensing process) or

complete closure. Result depends on correct appreciation of

effective/proportionate protection of public interests.

Best approach to limit and treat problem gambling and best approach to prevent crime.

Only consensus of Member States will bring legal certainty - but the ball is in their court!

Gaming Laws and Advertising Laws in Europe - Latest Developments

Time for Questions!

Thank you for your attention

Thibault.Verbiest@ulys.net