Number of fake euronotes seized down in 2010

On 19 July, the European Central Bank issued a statement disclosing that the number of fake euronotes obtained in the first half of 2010 declined by 13 percent compared to the latter half of 2009.  In the first half of 2010, a total of 387,000 euro bank notes were taken out of circulation- a small number considering there are approximately 13.2 billion genuine euro notes remaining in distribution. However, the change in counterfeits is surprising with 50-euro notes accounting for 42.5 percent of the counterfeit monies and 20-euro notes representing 41.5 percent.  This is a reversal from late in 2009 when 20-euro notes topped the list of most frequently counterfeit bank notes.

Of all the counterfeit notes found this year, 96 percent were for 20 euro, 50 euro and 100 euro notes and were found within the 16 member eurozone.  According to the European Central Bank statement, counterfeiting of notes is concentrated mainly in France, Italy and Spain although the most notable seizures of fake bank notes have occurred in Poland.  In April 2010, Polish police seized more than 250,000 fake euros and detained three suspects for their alleged involvement in the counterfeiting. However, fake euro notes have also been located in locations outside of the eurozone including a massive seizure in Colombia where 24,000 fake 50 euro notes were discovered.

ECJ delivers ruling on two joined Swedish cases

On 8 July, The European Court of Justice released its judgment on two joined Swedish cases involving Otto Sjöberg and Anders Gerdin. The Court ruled that Member States have the authority to restrict the provision of services for purposes of public security or public health as long as the restrictions applied are proportionate, non-discriminatory and achieve the objectives sought by the Member State.  The Court found that in Sweden the restrictive measures were both justified and proportionate. The questions were referred to the ECJ by the Stockholm Court of Appeal in relation to the penalties imposed on the two Swedish newspaper editors Otto Sjöberg and Anders Gerdin for publishing adverts for gambling companies residing outside of Sweden.   Swedish legislation grants licences for gambling to only public or charitable bodies and also prohibits the promotion of both unlicensed gambling organised within Sweden and licensed gambling organised in other Member States. 

Additionally, the Court determined that the Swedish legislation could be in violation of EU law if the penalties for violating the legislation are less strict for companies who promote gambling organised inside of Sweden than the penalties imposed on companies promoting gambling organised outside of Sweden.  The Court ascertained such practices would be considered discriminatory, but that the national court retains the authority to decide whether this is true of the legislation.

The judgment of the ECJ on this matter has once again reaffirmed the ability of Member States to decide their gambling policy including the authority to determine restrictions on the freedom to provide services.  However, the case may affect the ability of Member States to penalise companies for violations of gambling policy as such punishments cannot be discriminatory.

Belgium assumes European Presidency

Belgium took over the Presidency of the European Union on 1 July 2010 and published its work programme highlighting its intention to continue to the previous work of the Spanish Presidency regarding gambling.  Expressing the need to work with the European Commission on its consultations, the Belgian Presidency stated that is will continue to facilitate discussions between the Member States to attempt to determine a single solution for cross-border issues associated with online gaming.  Prior to assuming the role of President, Belgium expressed that it aimed to hold five meetings of the Working Group on gambling and betting in the Member States and also that it hoped to organise a European-wide player protection day.

Additionally, the Belgian Presidency has officially announced that it will hold a joint conference on gambling together with the European Commission and the Belgian Gaming Commission entitled "Day of the Authority." To be held on 12 October, the objective of the conference will be to bring together people from various backgrounds (i.e. academic, taxation, political, health, regulatory, administrative) to contribute their opinions on the role of the authority in gambling along with the problems currently encountered and potential solutions.  Internal Market Commissioner Michel Barnier will close the conference with his thoughts on recent European developments in the gambling sector.  While the conference is by invitation only, there will be 16 seats reserved for industry members and it is the intention of the EUROMAT Secretariat that EUROMAT will have a voice at the conference so that the land-based sector will be duly represented.