European Commission opens investigation into aid granted to Nürburgring racetrack in Germany
On 21 March 2012, the European Commission opened an in-depth investigation to assess whether a €524 million set of aid measures supporting the racetrack and Leisure Park at Nürburgring (Germany) is in line with EU state aid rules. The Commission has doubts whether these measures promote services of general economic interest or alleviate a funding default caused by the financial and economic crisis.
The various facilities of the Nürburgring complex include mainly a racing track and leisure park. The complex benefited from support measures like loans, capital increases or revenues from a gambling tax. The support related to expanses for the construction and operation of facilities directly linked to the race track and for the promotion of tourism (including gambling), amongst others. At this stage the Commission takes the preliminary view that all these measures could distort competition in the Internal Market and hence, be in breach with EU state aid rules.
A non-confidential version of the decision will be made available in one or two weeks for information purposes. In approximately one month, the official decision will then be published in the Official Journal, thereby opening a one-month period during which interested parties will be asked to submit comments on the measures under examination.
Please find here the European Commission's press release.

European Commission criticises German Interstate Treaty on Gambling
On 20 March 2012, the European Commission sent its response to the revised proposals from 15 German Länder for the new Interstate Treaty on Gambling, which introduces a regulatory framework for the organization and operation of online betting and gambling
In accordance with the TRIS notification procedure Germany notified the draft Interstate Treaty on Gambling on 15 April 2011 and the Commission then responded (on 18 July 2011) with a detailed opinion requesting German authorities to clarify a number of concerns mainly with regards the restrictions on the offering on online gambling services and the provision on hosting and intermediation of online casino games and poker.
The German authorities responded to the Commission's observations (on 7 December 2011). However, the Commission has indicated that the Länder have again failed to provide sufficient evidence to justify that the proposed restrictions are "suitable and proportional" as well as that a ban on online poker and casino games was justified.
German authorities will review the new rules within two years from entering into force of the Interstate Treaty on Gambling to ensure that they are compliant with EU legislation.

IMCO committee adopts IMI System report
On 20 March 2012, the European Parliament's Internal Market and Consumer Protection (IMCO) Committee adopted its report on the draft Regulation on the Internal Market Information (IMI) System aimed at improving administrative cooperation and information exchange between national authorities.
All EU Institutions have highlighted the potential use of the IMI System in the field of gambling. However, there is also general agreement that further work and clarification is needed as to how exactly this would be applied.
In the meantime, the European Parliament and the Council continue to work on this current proposal, which sets the general framework for the functioning of the system.
A debate by Council on the proposal for a regulation is scheduled on 30 May 2012. The Parliament's Rapporteur, MEP Bielan (ECR, Poland), has now been given a mandate to negotiate with the Council. An agreement between the Parliament and the Council is expected in June 2012.

On 7 March 2012, the European Commission's decision on the Danish State aid case on gambling duties was published in the Official Journal of the EU, thereby officially opening a two-month period during which interested parties could challenge the Commission's decision.
The formal investigation procedure was opened by the Commission in 2010 after EUROMAT member, the Danish Amusement Machine Industry Association (DAB), and the land-based casino operator, "Royal Casino", contested the logic behind the new Danish duties regime that imposes a differential tax treatment between online and land-based gambling operators. The tax rate for land-based casinos (roulette, blackjack, baccarat, punto banco, poker and casino based gaming machines) amounts to 75% of gross gaming revenue (GGR) and 71% of GGR for land-based gaming machines (i.e. amusement with prizes (AWP) such as slot machines in gambling halls and restaurants), whereas the online provision of these games is subject to a flat tax of 20% GGR.
The Commission's final decision (delivered in September 2011) established that although the lower rate of taxation for online gambling indeed constitutes state aid, it is still compatible with EU rules because "the positive effects of the liberalisation of the market outweigh the distortions of competition brought about by the measure".
EUROMAT member DAB, one of the complainants, filed its complaint to the European Court of Justice (ECJ) on the Commission's decision already in November 2011. At the time, DAB also requested the ECJ to suspend the new law while the proceeding is ongoing. Although the General Court has now rejected the latter, it continues to assess DAB's complaint on the Commission's decision.
Interested parties that are now also entitled to challenge the Commission's decision are namely, (i) the EU institutions, (ii) the Member States, and (iii) any third party that is "directly and individually concerned" by the new Danish legislation (i.e. the beneficiary of the aid, competitors, and complainants).
Please find here the Danish State aid case.