EU Updates

Difficulties with portfolio structures at the European Commission

Since the Barroso II Commission took office on 11 February 2010, it seems that officials have continued to encounter difficulties regarding the implementation of portfolio re-structuring. New processes established by the Lisbon Treaty, together with old rivalries and financial complications have prevented the new European Commission from securing a clear power structure. For example, although the EU's foreign policy chief, Catherine Ashton, has been assigned three EU Commissioners to assist her, one of her Commissioners is unaware of the responsibilities of the position six months after being assigned to it. Additionally, tensions between officials have increased during the negotiations over the European External Actions Services (EEAS) causing coordination over programmes related to development and neighbourhood policy to suffer.

Multiple Directorate Generals (DGs) are still experiencing difficulties over departmental competencies for various issues. However, of particular interest to EUROMAT members may be the ongoing debate on the Research and Innovation Plan which will have an impact on small and medium sized enterprises (SMEs). Originally, the Commission's new innovation strategy was envisioned to be a business-focused policy paper drafted by Research and Innovation under DG Enterprise falling under the responsibility of Industry and Entrepreneurship Commissioner Antonio Tajani. The strategy was near completion when Barroso appointed Maire Geoghegan-Quinn as Commissioner for Research, Innovation and Science at the end of last year. Now, the proposal has been renamed the 'Research and Innovation Plan' with a broader emphasis on research funding, education, SMEs and intellectual property.

Problems concerning the definition of innovation have also occurred due to the change in portfolios with DG Research taking a scientific approach and Tajani's cabinet looking towards a more practical document with an emphasis on public procurement and entrepreneurship. It is still not known when the document will be published. Yet, it is likely there may be further issues concerning the Research and Innovation plan since DG MRKT (Internal Market and Services) also retains responsibility for innovation which may create even more confusion when Internal Market Commissioner Michel Barnier publishes his upcoming Single Market Act.

CEN accepting comments on remote gaming framework

On 6 August, the European Committee for Standardisation (CEN) announced it was accepting public comments until 25 September 2010 for its framework on remote gambling standards in the EU. CEN has recently been working with private online gambling operators to develop the framework in order to publish it during the CEN Workshop Agreement at the end of October 2010. According to the CEN Workshop, the aim of the framework is to preserve "consumer and stakeholder confidence in the industry" and ensure the "online gambling industry operates in accordance with best practice and high standards." However, the framework would be both voluntary and self-regulated by participants causing stakeholders in the land-based industries to question the efficacy of such a framework. EUROMAT has been following these developments closely and believes that this is yet another initiative from the remote gambling industry to claim legitimacy. Ron Goudsmit, chairman of the European Casino Association (ECA), stated that it was "absolutely inconceivable" that operators who do not respect national laws could allege to be acting responsibly.

The framework is expected to be completed and published before the anticipated European Commission Green Paper on remote gambling in November. Although the CEN has suggested that the timing was "purely coincidental," Mr. Goudsmit has stated that the framework could jeopardise the legislative initiatives put forth in the Green Paper. Additionally, both the ECA and the European Lotteries Association questioned the deliberate exclusion of the land-based gambling industry in the framework and have alluded to the fact that the remote gambling sector hopes only to appear as though it has attempted self-regulation before any EU draft laws are proposed.

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.

European Court of Justice rules on VAT application

On 9 June, the European Court of Justice (ECJ) released its judgment pertaining to gaming hall operator Leo-Libera GmbH and the application of VAT on gaming machines in Germany.  Supporting the previous opinion of Advocate-General Yves Bot, the Court ruled that the German law permitting the application of VAT on gaming machines was compliant with EU rules. Article 135(1)(i) of Council Directive 2006/112/EC of 28 November 2006 provides that Member States can exempt from VAT "betting, lotteries and other forms of gambling," and judgment of the Court reinforced Member State authority to make wide determinations regarding the conditions and limitations of VAT exemptions.

Gaming hall operator Leo-Libera GmbH argued that under Article 153(1)(i) Member States could not exempt only betting and lotteries but must also exempt all other forms of gambling. The case was then referred to the Court for clarification of this article. The Court found fault with this argument since betting and lotteries are exempted from VAT due to the difficulty in applying it to such services.  Although other gambling transactions also create difficulties for VAT applications, the Court considered it necessary that exemptions from VAT must be for a minor proportion of the gambling services authorised by the State.

Additionally, Leo-Libera argued that the principle of fiscal neutrality was breached by the application of VAT to a limited number of services.  However, the Court rejected this argument stating that gambling services which are in competition with each other must not be treated differently for VAT purposes. The ECJ further declared that if two forms of gambling are not in competition with one another, one can be exempt from VAT while the other is not since Member States retain the discretionary power to decide how VAT is applied.

European Court of Justice delivers rulings on two Dutch cases

On 3 June, the European Court of Justice delivered its judgments on two Dutch cases involving remote betting operators Ladbrokes and Betfair. Reaffirming the previous opinions of Advocate General Yves Bot, the decisions reinforced the authority retained by Member States to determine their own gambling policies.  The Court declared that Member States have the right to prohibit online games of chance without violating internal market rules so long as the objectives for doing so are to prevent fraud, protect consumers or ensure the public order.  The ECJ also concluded that lawfully obtaining a licence to provide services in one Member State, does not provide "sufficient reassurance" that consumers in another Member State will be protected. 

However, the ECJ additionally ruled in the Betfair case that in a Member State where a single licensee exists, the State is not obliged to allow for competition in the tendering of licences regardless of whether the sole provider is the State or a private company.  The Court stated that such restrictions "may be regarded as being justified if the Member State concerned decides to grant a licence to, or renew a licence of, a public operator whose management is subject to direct State supervision or a private operator whose activities are subject to strict control by public authorities."

The rulings of the ECJ came in response to the Dutch Council of State request for guidance on a series of questions concerning injunctions made by the Dutch sports betting monopoly De Lotto against foreign operators Ladbrokes and Betfair.  De Lotto sought to prevent the companies from providing services in the Netherlands.  The national government in the Netherlands will now consult the ECJ ruling before providing its own decision on the cases.  However, the ruling of the ECJ will likely have a significant impact on any future decisions taken by the Dutch court. 

Both judgments by the Court expand the foundation created by previous ECJ rulings which have deferred to Member States the authority to determine whether foreign remote gaming operators can offer services in their territories. 

European Parliament debates Draft Consumer Rights Directive

On 3 June, the Internal Market and Consumer Protection Committee (IMCO) in the European Parliament discussed the first three chapters of the amended Draft Consumer Rights Directive which significantly revises the original European Commission proposal of 2008.  The revised version, presented by Rapporteur Andreas Schwab (EPP, Germany), was in response to the concerns of Member States and consumer organisations that the draft directive would result in a lower minimum standard of consumer rights harmonisation for some of the EU 27.  In order to combat this difficulty, the new draft version attempts to seek targeted harmonisation in some areas with minimal harmonisation in others despite the fact that some businesses have argued against mixed harmonisation due to the perception that such a regime would not improve legal clarity or legal certainty- two of the aims of the directive.

Attempting to simplify four existing directives which provide the framework for the contractual rights of EU consumers, the Draft Consumer Rights Directive focuses specifically on business-to-consumer (B2C) sales contracts for goods and services, in addition to clarifying the rules for both consumers and businesses regarding pre-contractual information, delivery rules, 'cooling off' periods for distance sales, repairs, replacements and guarantees as well as new selling technologies. Debate on the directive has produced enormous deadlock and during the 3 June meeting, MEPs suggested that the current timeline for debate would need to be amended to allow extended time for input.  As it stands now, a vote on the report in the IMCO Committee is set for September 2010

Estonia to join eurozone in 2011

On 12 May, the European Commission confirmed Estonia had met all the accession criteria to join the eurozone in 2011.  Estonia will now be the 17^th country to join the single currency bloc while Bulgaria, Czech Republic, Latvia, Lithuania, Hungary, Poland, Romania and Sweden are still preparing to join.  Following the European Commission's recommendation, EU procedures prescribe that European leaders must now accept the recommendation at a summit in June 2010 before EU Finance Ministers give final approval for Estonian entry at a meeting in July 2010.  Should all the procedures continue without incident, Estonia will adopt the euro on 1 January 2011.

Estonia had initially hoped to join the eurozone in 2007 but was prevented from doing so due to excessively high inflation rates. According to the latest euro estimates however, the Estonian economy appears healthy with a deficit of only 2.4 percent of GDP this year compared to the average of 6.6 percent for current eurozone member countries. The economic climate in the country is also quite strong with an overall deficit of only 9.6 percent of GDP versus the eurozone public debt of 84.7 percent. 

Although Estonian politicians and diplomats see the accession to the euro as advantageous for the country, the ongoing economic difficulties faced by the current 16 eurozone members have caused a decrease in support for joining the currency bloc.  Both Sweden and Poland have recently expressed the intention to delay eurozone entry even though neither country has been granted a legal opt-out.  Only the United Kingdom and Denmark have the legal authority to refrain from adopting the euro.

ECJ confirms ruling of Dutch gambling cases to be delivered in June

On 10 May, the European Court of Justice (ECJ) confirmed that it would rule on two closely related Dutch cases on 3 June 2010.  The cases involve the Dutch sports betting operator De Lotto, who sought injunctions against both Betfair and Ladbrokes to prevent the British firms from providing online betting services in the Netherlands.  De Lotto is currently the only licensed operator in the Netherlands and has argued that its monopolistic position assists in combating gambling addiction and is therefore within the legal realm to continue as the sole operator of online games.  On the other hand, Betfair and Ladbrokes believe De Lotto's position is in violation of European law since there is no competition for tenders to provide online betting services in the Netherlands.

The Dutch Council of State referred the case to the ECJ in order to receive guidance on a series of questions including whether or not it is legal for a Member State to prevent licensed operators from another Member State from providing services in its territory.  The Dutch Council of State also asked the ECJ to determine whether "the principle of equality and duty of transparency" applies when there is only a single license for games of chance.  Advocate General Yves Bot already delivered his non-binding opinion on these cases in November 2009 and suggested that the risks associated with online gambling were great enough to allow Member States the authority to restrict access to their online markets. 

Although the ECJ rarely rules against the opinion of an Advocate General, the decision will have significance for the gambling industry regardless of the ruling. Much like the Santa Casa case in Portugal, the ECJ decision will signal to other Member States the authority they retain to protect the integrity of their gambling industries.  The EUROMAT Secretariat will be following the ruling closely and will be sure to keep all members apprised of the developments resulting from the ECJ decision.

Council Working Group meets for second time

On 5 May the Council Working Group on gaming and betting services met for the second and final time under the Spanish Presidency of the European Union.  Discussion during the meeting focused mainly on the Draft Presidency Progress Report on illegal gambling in the Member States which concentrates on the definitions of illegal gambling throughout the EU 27 and the differing ways in which Member States attempt to combat issues of illegitimate gaming.  The report establishes a shared vision of what constitutes illegal gambling defining it as "Gambling in which operators do not comply with the national law of the country where the services are offered, provided those laws are in accordance with EU Treaty principles." The Progress Report is expected to be presented to the Competitiveness Council on 25 May 2010.  The Spanish Presidency hopes that the Competitiveness Council along with the European Commission will take this report into account while developing the Green Paper on gambling due in autumn 2010.

During the Working Group meeting, the European Commission indicated it may seek to hold bi-lateral meetings with Member States concerning gambling policy and could attempt to target those Member States currently facing infringement procedures.  The European Commission intends to hold such meetings prior to the publication of the Green Paper on gambling.

Additionally, the Belgian presidency, which had already signalled its desire to seek legal texts rather than further consultative documents, conveyed it intention to hold five meetings of the Council Working Group on gaming and betting during its upcoming presidency of the EU.  The Belgian presidency assumes office on 1 July 2010 and communicated to the Working Group its objective to agree on Council conclusions by December 2010.

Belgian Presidency to focus on cross-border gaming

During a conference on the ‘Liberalisation of the Gaming Market' in Rome, Italy, the Belgian chief gambling regulator expressed the intention of the upcoming Belgian Presidency to drive the debate on cross-border gambling.  Belgian Gaming Commission President Etienne Marique said that Belgium would use its six-month presidency of the European Union to search for ‘legal certainty' over gambling issues.  Mr. Marique also cited the intention of the upcoming presidency to address areas of confusion for gaming operators and to discuss whether the possibility exists for some common standards across the EU 27.  However, the Belgian Gaming Commission President also expressed that the Belgian presidency will not be seeking further consultations of Member States and industry stakeholders, but rather will focus on developing texts to help regulate the gambling industry.

It is likely that the Belgian presidency will continue to work via the Council working group on gambling as a way to offer advice to the European Commission on gambling legislation.  The European Council working group on gambling was formed under the French presidency in 2008, with a second progress report submitted to the European Union's Competitiveness Council by the Swedish presidency in December 2009.  The working group has since met once under the current Spanish presidency and will meet for a second time 5 May 2010.  In the first meeting under the Spanish presidency in March 2010, the working group discussed issues of illegal gambling and possible counter measures to prevent the expansion of such activities.  It is not clear whether another meeting of the Council working group will occur prior to the expected publication a Green Paper on gambling by the European Commission.  Internal Market Commissioner Michel Barnier has previously suggested the Green Paper on gambling would likely materialise by autumn 2010.

European Commission seeks citizens' views on sports

The European Commission launched on online public consultation on sport in the European Union on 8 April 2010.  Corresponding directly with the ongoing consultation process being carried out among various governmental and non-governmental stakeholders, the questionnaire asks for citizens' views pertaining to the main challenges or problems currently affecting sport in the EU 27.  It also looks to gauge citizens' attitudes towards the media, doping, governance and equal opportunities for men and women. Under the Lisbon Treaty, the European Commission now has a competency to legislate on sport in the EU and is currently seeking the input of citizens to help form strategic policy. 

As many licensed betting operators have a particular interest in any legislative changes to sport in the EU, the ongoing consultation could have implications for those in the gambling industry. The aim of the European Commission in this realm will be based on the provision in the Lisbon Treaty which allows the institutions to take on "the European dimension in sport, by promoting fairness and openness in sporting competitions and cooperation between bodies responsible for sports, and by protecting the physical and moral integrity of sportsmen and sportswomen."  Legislative developments may likely reflect issues related to game-fixing and match-throwing which consequently affect many in the gambling industry as well. 

MEPS may change EU rules to expand European Parliament

On 7 April the European Parliament's Constitutional Affairs Committee voted on two reports that would alter the current rules laid out by the recently adopted Lisbon Treaty.  The Member State proposal from Spanish Minister of Parliament (MEP) Inigo Mendez de Vigo (EPP), would allow the European Parliament to use an Intergovernmental Conference to decide how best to bring the additional 18 MEPs into the Parliament as provided for in the Lisbon Treaty.  Currently, EU rules dictate that institutional rule changes must be discussed at a Member State Convention, but such a process would be time-consuming and the Parliament would like to see its numbers increased in a more expeditious manner.

Despite the call for the additional 18 MEPs by the Lisbon Treaty, the next elections for the European Parliament are not scheduled until 2014.  The ancillary parliamentarians are distributed amongst numerous Member States with Austria, France and Sweden receiving two more seats, while Bulgaria, Italy, Latvia, Malta, the Netherlands, Poland, Slovenia and the United Kingdom all acquiring an additional seat.  Although it is assumed MEPs will approve the constitutional committee's decision for an Intergovernmental Conference during the plenary session in May 2010, any changes to the Treaty made at the conference would still need to be ratified by all 27 Member States and such a process could potentially take several years.

ECJ opinion affects drafting of Austrian law

Following last month's ECJ opinion by Advocate General Jàn Mazak, the Austrian government is now expeditiously drafting new amendments to the proposed legislation. Advocate-General Mazak's formal opinion advised Austria against restricting casino licences to only Austrian-based companies as it violated the Internal Market rules of the EU. Since the opinion was delivered, the Austrian government has had a renewed sense of urgency to complete the reform process of gambling legislation that was stalled in late 2008. The major obstacles to modifying the current legislation reside in the gaming machine sector. The original draft proposal by the Austrian government authorised bringing all gaming machine operations under the control of one federal body which would provide one single licence for amusement arcades. Some stakeholders believe that centralising the gaming machine sector under amusement arcades would give the government the opportunity to limit the number of licences distributed and possibly avert the current advisements of the ECJ. Additionally, the re-structuring would affect the many regional governments who already regulate and tax gaming machine operations.

Additionally, the Austrian government is still awaiting the opinion of the ECJ involving the founders of a Maltese sports-betting website with operations in the country. The opinion could once again affect the drafting of the current laws. There are also remaining questions as to whether the Austrian government can reform the gaming machine market based solely on the premise of player protection. While the drafting of the new laws are currently underway, possible legal challenges may still lie ahead.

ECJ opinion delivered on Leo-Libera case in Germany

On 11 March, Advocate-General Yves Bot of the European Court of Justice (ECJ) delivered his opinion concerning the taxation of gaming and amusement machines in Germany. AG Bot argued that Member States have the discretionary power to decide VAT applications and exemptions for games of chance under the VAT Directive. The case was brought to the ECJ by the German Court of Finance (Bundesfinanzhof) in order to clarify the application of Article 135(1)(i) of the Sixth VAT Directive 2006/112/EC and its harmonisation with German law. The Directive allows Member States to exempt betting, lotteries and other forms of gaming from VAT but also provides that such exemptions are subject to the limitations imposed by the Member States. German legislation exempted only horse-race betting, fixed-odds betting and lotteries from VAT. Leo-Libera GmbH, a gaming arcade operator equipped with gaming and amusement machines, challenged the VAT charges by the German government citing that the Directive included VAT exemptions for gaming and amusement machines in its scope.

AG Bot's opinion indicated that Member States have the authority to determine which games of chance VAT can be applied to. However, AG Bot asserted that the application of VAT must respect the principle of fiscal neutrality in addition to being unambiguous and uniformly applied. In his opinion, AG Bot also maintains that different games of chance should not be considered as being in competition with each other as otherwise Member States would be forced to choose a policy where either all games of chance are exempt from VAT or none of the games of chance are exempt from VAT.

Advocate General Mengozzi delivers opinion on German case

On 4 March, Paolo Mengozzi, Advocate General of the European Court of Justice, delivered his opinion concerning one of seven gambling-related cases from Germany. Advocate General Mengozzi argued that Member States are not required to allow licensed gaming firms entrance into their markets based on their licensing in another EU Member State. AG Mengozzi asserted the legitimacy of monopolies for certain gambling and betting services giving many Member States, including France and Portugal, the right to defend their state monopolies which control their gaming markets. However, AG Mengozzi's opinion is in contrast to the ECJ opinion delivered on 23 February concerning casino operating licences in Austria. In that case, the Advocate General recommended that any business in a Member State can be adequately supervised regardless of where the licence originates suggesting the illegitimacy of gaming monopolies. Although the opinion given by AG Mengozzi is not binding on the European Court of Justice, typically the ECJ rarely rules in opposition to the opinion of an Advocate General. The judges of the ECJ have just begun their deliberations concerning the case.

Advocate General states that Austrian gaming law is incompatible with EU law

On Tuesday 23 February, the same day the opinion on the Swedish cases was delivered, Advocate General Ján Mazák delivered a different response on the case featuring Austria and Ernst Engelmann, a German citizen who was prosecuted for opening two casinos in Austria without a licence. Mr. Engelmann stated that he did not apply for a licence as he knew that as a foreign national he would not be entitled to one in any case under Austrian laws, and as such he claimed he was being discriminated against.  In this case, the Advocate recommended that the law which restricts casino licenses to operators already set up in Austria be found incompatible with EU law, which allows the free movement of goods and services anywhere in the 27 Member States. He added that discriminatory restrictions may be justified if there is a threat affecting the fundamental interest of society, but decided that in this particular case no such threat existed. He clarified his position by saying that if the requirement to be established in Austria did not exist, there would be no threat to citizens. Furthermore, he was of the opinion that any business conducted in a Member State can be adequately supervised, regardless of where the licence holder is based.

European Court of Justice delivers opinion on Swedish cases

Advocate General Bot of the European Court of Justice (ECJ), delivered his opinion on Tuesday 23 February 2010 on the joined Swedish cases C-447-08 and C-448/08, both relating to remote gambling advertising in the media. According to the Advocate-General, Swedish legislation which prohibits the provision and promotion of gambling over the Internet by companies established in other Member States does in fact comply with European Union law. He stated that Sweden could use the defence of public interest in order to restrict the promotion of remote gambling by operators licenced outside Sweden. However, he added that while a Member State is entitled to restrict gambling activities within its borders, the measures it employs to do so must not be discriminatory. He pointed out the difference in penalties applied to those who advertise foreign gambling sites - up to six months in prison - compared to those who advertise unlicensed gambling originating in Sweden, in which they would incur only administrative penalties.

European Commission sends letter of concern to Poland

The European Commission has sent a letter to Poland's Ministry of Finance, detailing their concerns over the recent expedited changes to the country's gambling legislation. It is understood the letter outlines that certain obligatory standards should have been applied when changing technical regulations, which relate directly to European Directive 98/34/EC. In addition to the questions that arise in relation to the Directive , there are other doubts that question the compatibility of the laws with regard to the EC Treaty obligations, which guarantee the free movement of goods and services with the EU. If European Commission pressure leads to the new laws being suspended, then it means that the previous legislation would be reinstated until the new proposals were properly assessed and implemented. Moreover, if the Ministry of Finance failed to respond to suspension demands, then it could face huge fines from the European Court of Justice, as was the case with Greece, when it refused to repeal a law which prohibited gaming machines outside casinos in 2002. It continues to be fined €31,536 by the ECJ for each day that the law remains unchanged.

Internal Market Commissioner announces new approach to gambling

On 11 February, new Internal Market Commissioner Michel Barnier announced that the EU's executive body would seek more coherent rules for remote gambling in the European Union. The statement was delivered during a debate during a European Parliament plenary session following an oral question from MEP Malcolm Harbour (UK, ECR), who is also chairman of the Internal Market and Consumer Protection (IMCO) Committee. MEP Harbour asked the European Commission to clarify its position on remote gambling following the recent rulings of the European Court of Justice, in particular that of the Santa Casa/Bwin case of Portugal, from September 2009. Commissioner Barnier's statements during the debate indicated that he would consider alternative solutions to individual infringement cases concerning gambling. Additionally he announced that he would consult the gambling industry and Member States on a Green Paper, which he intends to release by autumn 2010. Currently, it appears that this exercise will focus on remote gambling activities but EUROMAT Secretariat will continue to monitor developments in case it is decided it will encompass all types of existing gambling activities.

European Parliament accepts new Commissioners.

On 9 February 2010, MEPs in the European Parliament overwhelmingly voted in favour of the new European Commission, by 488 votes to 137. The new EU Executive then took office at midnight on the same day, nearly four months behind schedule. The Commissioners began their roles in earnest, with Internal Market Commissioner Michel Barnier facing the European Parliament to answer questions on remote gambling only two days after the vote. This is the second team headed by Jose Manuel Barroso, who himself had to be voted in by MEPs in September 2009. President Barroso outlined his priorities over the next five years as " a successful exit from the crisis; leading on climate action and energy efficiency; boosting new sources of growth and social cohesion to renew our social market economy."

European Commission examines Polish gaming laws

There have been reports in the media over the last couple of weeks which suggest the European Commission (EC) has sent a second letter to the Polish government expressing concern over the new gambling laws introduced by Polish Prime Minister Donald Tusk and which are certain to severely damage the gaming machine sector. The EUROMAT Secretariat has been in contact with the EC's TRIS office to clarify the latest stage of proceedings. In fact the EC has not yet sent a second letter but is still analysing the content of the law, which was approved in Poland without seeming to follow the necessary procedures for EU Member States. Some of the information the EC will consider is letters submitted by the Polish Gaming Association (Izba Gospodarcza) and its legal team in Brussels. This analysis will be concluded within the coming month and if the EC decides the laws are in violation of EU law, or they were introduced in Poland not in accordance with the obligatory procedure, an infringement proceeding may be initiated.

Swedish and Austrian cases to be heard in ECJ in January

The European Court of Justice has confirmed that it will examine Austrian and Swedish rules on online gambling in the New Year on 14 January is separate oral hearings. The Austrian case - number C-64/08 - also relates to the freedom to provide services under European law, and in particular Articles 43 and 49 of the EC Treaty. The case was referred to the ECJ by the Austrian Court in Linz, who sought clarification on whether the country's two current gambling licensing regimes are in violation of the EU's competition legislation. If that is the case, then the national court wants to know if current Austrian gambling legislation can be legitimately used to exclude gambling operators based in other Member States.

Advocate General of ECJ to deliver opinion on German gambling cases in March 2010

An Advocate General of the European Court of Justice (ECJ) will deliver an advisory opinion on the validity of Germany's state gambling monopolies on 3 March 2010, following oral hearings on 7 and 8 December at the ECJ that examined seven cases referred to the ECJ by German courts. When Italian Advocate General Mengozzi delivers his opinion to the ECJ in March, legally it is non-binding but it is usual for the judges to consider this opinion when preparing their own ruling. It is expected that the final verdict will be delivered sometime in the second half of 2010.

Advocate General delivers opinion in favour of Dutch state

Advocate General Yves Bot of the European Court of Justice has delivered his opinion on the cases involving Betfair, Ladbrokes and the Dutch monopoly of De Lotto. His opinion is in favour of Member States maintaining a monopoly on gambling services and their right to grant licences to one single operator, as a means to protect consumers from fraud, crime and gambling addiction. In his very lengthy opinion, Advocate General Bot stated that free competition in the EU promotes the harmonious development of economic activities and employment. However, he then added that these advantages do not apply to the gambling sector as competition among gambling operators will push consumers into spending more than they can afford and may induce an addiction to gambling. The opinion of Advocate General Bot is non-binding but it usually indicates the way in which the ECJ will deliver its final verdict. For the Bwin/Santa Casa Portuguese case, which was concluded in September, his opinion at the time favoured the Portuguese monopoly and he supported Members States maintaining exclusive access to their gambling markets. The eventual verdict obviously upheld the same view as the Advocate General.

Proposed gambling intergroup loses political momentum

The proposed European Parliament Intergroup on gambling, backed by key MEPs such as Christel Schaldemose (Progressive Alliance of Socialists and Democrats, Denmark) and Mario Mauro (European People's Party, Italy) has not gathered the sufficient amount of backing from other politicians, therefore it will not be able to go ahead. The EUROMAT secretariat understands that now that the intergroup is shelved, supportive MEPs will continue with a ‘plan B', in which they intend to hold a gambling related event every three months or so which will likely focus on the promotion of responsible gambling and corporate social responsibility. The EUROMAT secretariat will maintain contact with the offices of MEPs Schaldemose and Mauro and will keep the membership up to date on any upcoming gambling-related events when they have been confirmed.

Swedish Presidency presents gambling report to Competitiveness Council

On 4 December, the Swedish Presidency of the European Council presented its Progress Report on the Legal framework for Gambling and Betting in the Member States of the European Union to various Ministers representing the Member States Ministers at the Competitiveness Council.

On the positive side, the progress report reaffirmed the principle of subsidiarity and of Member States being in control of their own gambling market jurisdictions, which is also one of the main principles of EUROMAT.  However, the report unfairly focussed on the link between gaming machines and problem gambling and failed to mention the weak levels of consumer protection applied by the remote gambling sector. It did not recognise the private sector initiatives that have been put in place to protect consumers, nor the high levels of taxes that are paid by land-based private gambling operators.

During the meeting, ministers from Malta and the UK tabled a joint minute statement which expressed concerns over the progress report. They requested no further discussion within the Council on gambling as the European Commission has shown no intention to legislate on gambling at the EU level.

In response to the report, EUROMAT issued a press release stating that the progress report was inaccurate and incomplete. The press release was quoted in an article by Agence Europe, one of Europe's lead news agencies on public affairs, and which quoted EUROMAT's President Annette Kok and portrayed our association in a positive light.

EUROMAT meets Spanish Presidency representatives in Brussels

On 1 December 2009, a EUROMAT delegation met with Mr. Jose-Luis Fernandez Sanz of the Spanish Permanent Representation to the EU to discuss the upcoming Spanish Presidency of the EU.

Mr. Fernandez explained that the Spanish Presidency will be likely to continue the same work started under the French Presidency in 2008 but will maintain a low profile. In fact Spain intends to hold the minimum number of meetings for a Council working party, which is two. The Council Working Party on Gambling and Betting will meet on 5 March and 5 May 2010. The Spanish Presidency has indicated that it will focus its attention on thefight against illegal provision of gambling services particularly, blocking of Internet Service provision and Financial transaction blocking. The Spanish Presidency will then draft a progress report which is expected to be presented to the Competitiveness Council on 26 May 2010.

The Belgian government, next in line after Spain, to hold the Presidency of the EU from July to December 2010, is quite keen on discussing gambling issues and has asked the Spanish presidency to continue with the work. On the Swedish Presidency report, the Spanish presidency considers it merely a national report with no real power, as it does not set out any Council conclusions.

European Commissioners and portfolios announced

Following the appointment of the two new influential EU positions and the ratification of the delayed Lisbon Treaty, European Commission President Jose Manuel Barroso announced the composition for the next Commission and their respective portfolios, appointments that have seen much delay, in part due to the difficulties in implementing the Lisbon Treaty. President Barroso has developed some new portfolios, Climate Action; Home Affairs; and Justice, Fundamental Rights and Citizenship. Under Article 17 of the Lisbon Treaty, it is the Commission President who has the mandate to decide on the internal organisation of the European Commission. France has managed to obtain the key post of the Internal Market Directorate General, to which former French agriculture minister Michel Barnier has been appointed. Joaquin Almunia of Spain will become Competition Commissioner - another much-sought after position in the EU executive body. Olli Rehn from Finland will be Economic and Monetary Affairs Commissioner. John Dalli of Malta has been appointed Commissioner for Health and Consumer Policy, another key portfolio of key interest for EUROMAT.

German gambling sector examined in ECJ

It has been confirmed that eight of Germany's gambling cases will be heard in the European Court of Justice (ECJ) on 8 and 9 December 2009, with representatives from some of Germany's betting and lottery firms stating that they are optimistic of a change in Germany's gambling regulations, despite such changes not likely to take place for the next two years. The ECJ will be called upon by Germany's gambling operators to examine Germany's Interstate Gambling Treaty, which was introduced in January 2008 and banned all forms of internet gambling, except horseracing.

European Council appoints President and High Representative for Foreign Affairs

On the 19 November 2009 anextraordinary meeting of the Council of the European Union finally selected the first ever permanent President of the European Council and the High Representative for Foreign Affairs, posts that will now be filled by now former Belgian Prime Minister Herman Van Rompuy and the UK's Baroness Catherine Ashton respectively. The decisions produced mixed responses in Brussels, as both candidates have relatively low profiles and are not widely recognisable on the world stage. However, others such as German Chancellor Angela Merkel said Mr Van Rompuy would bring consensus and political competence to the presidency. US President Barack Obama also offered his support and said the appointments would "strengthen the EU and enable it to be an even stronger partner to the United States".

Dutch gaming monopoly faces ECJ test

UK firms Betfair and Ladbrokes presented their cases against Holland's De Lotto on 12 November 2009 in the European Court of Justice (ECJ) and following these initial hearings it has been confirmed that Advocate General Bot will deliver his lead opinion on the challenges on 17 December 2009. Betfair and Ladbrokes are arguing that under EU principles, in particular Article 49 of the EC Treaty, they should be able to accept bets from consumers in the Netherlands because they are both regulated licensed operators in the EU. Under the current system in the Netherlands, the two companies have been prohibited from accepting bets without a Dutch licence, despite having applied for such licences in the past and being refused. Following the considerations of Advocate General Bot in December 2009, a decision will be rendered by the full panel of the European Court at some point during 2010.

Parliament intergroup on gambling gathers signatures

On the 21st of October, a deadline passed for the collection of signatures from MEPs who are interested in setting up an intergroup (cross-party-group) to examine gambling and betting in the European Union. It is understood that around 50 signatures were gathered, which is a comparatively quite low amount and suggests the lack of political will amongst MEPs to progress with the idea of an intergroup. The initiative is being led by Christel Schaldemose (Progressive Alliance of Socialists and Democrats, Denmark) and Mario Mauro (European People's Party, Italy) and in order for the intergroup to be formed, they will need the backing of and MEP from the Liberal Group (ALDE), as support from the three biggest political groups in the European Parliament is required before an intergroup can be formed. As of yet there seems to be no interest from ALDE in taking part in such a scheme. MEP Schaldemose (who is co-hosting the launch of the EUROMAT responsible gambling publication) and MEP Mauro have until December to persuade an MEP from ALDE to join their cause, or the idea of an intergroup will have to be shelved permanently. The EUROMAT secretariat has been informed that if the intergroup is permanently shelved, MEP Schaldemose and MEP Mauro will continue with a ‘plan B', in which they intend to hold a gambling related event every three months or so, which will be similar in structure and content to the responsible gambling brochure launch that will be held by EUROMAT on the 4th of November.

Council Working Party meets again

On Thursday 8 October, gambling experts from EU Member States reconvened at a meeting of the Working Party on Gambling and Betting, chaired by the Swedish Presidency. During the discussions, the Presidency focussed on penalties applied in Member States in relation to illegal betting and illegal advertising. The experts gathered at the meeting were asked in which ways their countries preferred to pursue law-breaking in these regards, such as whether they preferred to take court action or else block the websites/bank accounts of offenders. The European Commission is known to be monitoring these meetings but is not getting directly involved or taking an official stance, although there remain several infringement proceedings involving gambling launched by the Commission against Member States. The next steps will be a final meeting in November held by the Swedish Presidency. The Swedes will then send a report in early December to the Competitiveness Council, which will outline the outcome of the meetings. It is then expected that the Spanish and Belgian Presidencies of the EU in 2010 will continue with the consultations.

Commission asks Denmark to amend gambling law

On the 6th of October, the European Commission issued a detailed opinion against Denmark, concerning proposed legislation that would create a more open but still limited online gambling market. Originally, the Danes put forward legislation meant to update online gambling laws and bring them into line with EU laws. This would have allowed for operators from other member states to set up business within Denmark and a three month standstill period was implemented before the Danish government could apply the laws, giving the Commission a period of time in which to examine the draft proposals. Following the expiry date of the standstill period, the Commission found the legislation to be unsatisfactory, and imposed a further automatic standstill period of one month. The information in the detailed opinion was kept confidential at the request of the Danish government. The Danish government must respond to the Commission's detailed opinion and if it fails to comply with the requirements set out, or goes ahead and implements the legislation without taking into account EC objections, then the Commission could initiate legal proceedings and instigate infringement procedures. The current standstill period will expire on the 9th of November.

New European Parliament approves Barroso's second term

On September 16th, one of the first tasks delegated to MEPs was the election of a President of the European Commission and they voted for the reinstatement of José Manuel Barosso - who will now serve his second five-year term - with 382 votes in favour and 218 against. Mr. Barroso stressed his priorities in his acceptance speech as tackling the economic crisis and negotiating with world politicians on Europe's behalf. One of the first challenges of his Presidency will be the outcome of the referendum on the Lisbon Treaty in Ireland, which is scheduled to take place on the 2nd of October and President Barosso recently visited Ireland to lend his weight to the ‘Yes' campaign. If the Irish vote ‘no' it will effectively end any hopes of the Treaty being ratified, but polls suggest it will probably be passed this time around, the second time the country has been asked to vote on the subject. Following this, the European Parliament will be asked to vote on a new college of European Commissioners, which is expected to take place in November 2009.

Meeting of Council Working Party on Gambling and Betting

The Council Working Party on Gambling and Betting held its first meeting on the 11th of September under the chairmanship of the Swedish government to discuss issues related to the prevention of problem gambling and the promotion of responsible gambling behaviour. The meeting was intended as a platform for Member States to share their experiences and practices in this regard and so representatives offered examples of measures they has taken within their own jurisdictions to ensure consumer protection. The Swedish Presidency resumed the work of the Council's Working Party started under the French Presidency in 2008. It has compiled a list of tools and mechanisms aimed at preventing problem gambling and promote responsible gambling that are currently in place in different Member States, such as age restrictions and limited stakes, and used this list to facilitate exchange of practices and experiences among the Member States present. Two more meetings of the Working Party are scheduled to take place under the Swedish Presidency, the next one being the 8th of October. The Swedish Presidency has indicated to EUROMAT that advertising rules and control of promotion of gambling services in Europe will be the next ssue on the table of the Working Party. The third and final meeting is then expected to take place in November 2009.

ECJ rules in favour of Portuguese monopoly

On September 8th, the European Court of Justice (ECJ) announced its long-awaited verdict in the case of La Santa Casa da Misericordia (Santa Casa) against Bwin and the Portuguese football league. The ECJ found in favour of Santa Casa, which is a state run charity in Portugal that has a monopoly on lottery and betting services, and decreed that ‘the prohibition which Portuguese legislation imposes on operators such as Bwin of offering games of chance via the internet may be regarded as compatible with the freedom to provide services enshrined in the EC Treaty.' The ECJ ruling has clearly noted that cross-border provision of services in the gambling field can be limited if such limitation is aimed at maintaining public order and in this specific case preventing crime and fraud. The ruling is considered to be highly-significant for the future of the remote gaming sector, but it may also have implications for the land-based industry too as it is the first court case to pass verdict on state-implemented gaming monopolies. The long-term implication of the verdict is that the establishment of a single market for gambling, favoured by some in the industry, now does not seem possible in the absence of a clear EU Directive.

Romania to make changes concerning games of chance

On the 21st of July, the Romanian government notified the European Commission of its decision to apply the methodological guidelines for the Government emergency ordinance on the organisation and operation of gambling games. The previous formative documents are no longer considered to adequately cater for the economic, technical and conceptual changes in Romania's gambling sector. Only organisers that adopt the new requirements will be able to attain a licence and stay in business. The European Commission has received the notification by Romania while the Romanian government had already approved, adopted and published the proposed laws in the Romanian Official Journal. Officials from the European Commission's TRIS Office dealing with the case have confirmed that they have had to close the Romanian case as the TRIS procedure does not allow the European Commission to do much with a law which is already adopted. The European Commission has indicated that it has already drafted a letter to the Romanian government to be sent at the end of August 2009, in which it requires the Romanian government to abrogate the two gambling laws passed without properly following the notitifcation procedure and therefore restart the process and properly file their proposed law with the European Commission thus allowing for a full three month standstill period for other Member States and third parties to comment.

European Parliament back in business

Business resumed in the European Parliament on the 24th of August when the various political groups reconvened after their summer recess. The first committee meetings will begin the week of the 4th of September and the first plenary session will take place on the 14th of September in Strasbourg. Following the parliamentary elections on June 4th, the centre-right parties gained ground at the expense of the left which enabled the European People's Party to retain power as the biggest bloc, which 264 seats. The Socialist and Democrats came second in the running, with 183 seats. Despite being the largest group, the EPP still does not have enough of a majority to dominate plenary votes, and so will have to rely on forming alliances with other groups in order to secure control. Turnout of the electorate was the lowest since direct elections began, at 43%. In July, the first job of the new Parliament was to elect a President and in a landmark move, they selected former Polish Prime Minister Jerzy Buzek in an overwhelming victory, with 555 votes. Mr Buzek ,a member of the EPP Group in the European Parliament, is the first politician to chair the Parliament who comes from Central and Eastern Europe. He will serve as President for two and a half years before handing over power to an MEP from the group of Socialists and Democrats, who will hold the post for the remainder of the Parliament's mandate. The parliamentary committees also convened in July to elect chairs and vice-chairs. Full details of these appointments were given in last month's newsletter.

Council Working Party on Gambling and Betting to meet

On July 1st 2009, Sweden assumed the rotating six-month Presidency of the Council of the European Union, taking over from the Czech Republic. The Swedish objectives were made clear from the start, their main priorities listed as climate change, employment and of course taking on the challenge of a damaged economy during a world-wide recession. Concerning gambling policy, the Swedish Presidency has already confirmed its intention to continue the initiative started during the French Presidency in autumn of 2008. The group is known as the Council Working Party on Gambling and Betting and all findings will be presented to the Competitiveness Council. Sweden is aiming for more involvement from the European Commission and has suggested that more studies and investigations need to be carried out on issues of problem gambling, aggressive advertising, consumer protection and responsible gambling behaviour. Although there is no common legislation that harmonises Member States' gambling policy, Sweden is seeking a common approach to these issues and hopes the Working Party will provide a forum in which members will be able to exchange experience and advice to combat adversarial issues in the gambling sector. The date for the next meeting has been set for the 11th of September. A representative from the Swedish Presidency informed us that items on the agenda will include measures to prevent addiction, age control and controlled advertising, codes of conduct and the different measures taken at Member State level. The secretariat will keep you informed on the results of the above mentioned meeting.

Spanish lottery taxation criticised by ECJ

The previous EU article dealt with one Portuguese case before the ECJ, regarding the right to the free movement of services in accordance with EU law. A second Portuguese case, regarding the discriminatory taxation methods on foreign lottery winnings, is similar to another ECJ case against the Spanish government which refers to national legislation which submits all lottery winnings to Spanish income tax. However, exemptions are handed down to domestic games operated by state-owned lottery provider Loterias y Apuestas del Estado (LAE) and to charity lotteries run by the Spanish Red Cross and the Spanish institute for the blind (ONCE), which count for 40% of total revenues in the Spanish lottery sector. The discrimination in favour of domestic providers caused the European Commission to conduct infringement investigations into the lottery tax legislation in Spain from April 2006, subsequently referring the case to the ECJ in mid-2007 when the Spanish government refused to change its national rules in order to comply with EU law.

The results of this landmark gaming case at the European Court of Justice (ECJ) will not be known until 8 September 2009, rather than during the summer as had originally been expected. Anticipation is high on both sides of the debate, given the implications for the future of gambling monopolies throughout the EU. The Portuguese case came about when Bwin and the Portuguese Football League were fined around €80,000 each for offering and advertising betting services that challenged the overriding state monopoly of Santa Casa da Misericórdia de Lisboa.  The ECJ is not bound by the opinion of Advocate General Bot, yet it may give an indication of the direction of the judgement. While the opinion accepted that "the Portuguese legislation constitutes a restriction on the freedom to provide services", it also left the argument in favour of the monopoly open to justification in the case of "an overriding reason relating to the public interest" (for example, consumer protection).

European Parliament: back in action 

On 14 July 2009, the new and re-elected Members of the European Parliament attended the first Strasbourg plenary session of the 2009-2014 parliamentary term. After weeks of speculation over the choice of EP President, Jerzy Buzek (EPP, Poland) was elected with 86.18% of the vote. President Buzek, the first President of the European Parliament from the Central and Eastern European states since the 2004 EU enlargement, takes over from former President (and returning MEP) Hans-Gert Pöttering (EPP, Germany). He will lead the European Parliament for the first 2 and a half years of this term (i.e. until January 2012). Also elected were the 14 Vice-Presidents of the European Parliament.

The figures for the Italian scratchcard business from January to April 2009 indicate that turnover may increase to €10 billion in 2009. Although good news for the sector, this means that the European Commission may be forced to scrutinise the steps to be taken in the renewal of the scratchcard licence. The licence is held by the Consorzio Lotterie Nazionali, a consortium in which 60% of the shares are owned by Lottomatica. The current licence runs for a period of 6 years, ending in 2010. While licensing conditions do not specify the terms of this renewal, clarification is a necessity as EU competition rules require the allocation of adequate time for the preparation of a tender. In late June 2009, as a result of pressure from the European Commission, the Italian Economy Ministry and AAMS, the gaming authority, announced that a tender would be made available as soon as possible to private gaming operators.

The French notification of the liberalisation of its online gambling market has drawn a detailed opinion from the European Commission, which caused the extension of the standstill period to 8 July 2009. The redraft must clarify that the new regulator has to recognise the measures in place for private operators in their countries of establishment. The ministry is also required to supply analysis explaining the validity of imposing a limit on the maximum proportion of bets returned to players, which the original draft linked to high levels of gambling addiction. France expects to implement the law on 1 January 2010, but if these changes are not implemented, and the government continues to implement the law, it could be subject to European Commission infringement investigations and subsequent fines.

In the new European Parliament, the EPP is still the largest group with 264 members, but it does not have enough to dominate a vote in plenary. Therefore, in such matters as the election of a new President of the European Commission, it will have to ally itself with another group to ensure that Jose Manuel Barroso retains his current position. In addition the EPP favours a changed timetable for the election of the European Commission President, prefering it to take place on 15 July instead of waiting until October. In order to achieve these aims, the EPP may have to cooperate and make compromises with other groups in the EPP - the Socialists (now known as the Progressive Alliance of Socialists and Democrats (PASD) following the inclusion of MEPs from the Italian Partito Democratico), ALDE and the new European Conservatives and Reformists (ECR) group (containing British Conservative MEPs who recently separated from the EPP). The Conference of Presidents of the political groups will take place on 8 July, and will decide on the definitive date for the vote.

On 1 July 2009, Sweden will take up the Presidency of the Council of the European Union from the current Czech Presidency. The main priorities on the agenda are dealing with the financial and economic crisis, the growing rate of unemployment, by pursuing a common capacity for action in both the financial and economic fields and in the labour market. Most importantly, Sweden hopes that the full ratification of the Lisbon Reform Treaty will take place during its Presidency term, with the Swedes ready to handle all the preparatory work needed to ensure that its implementation and functioning go as smoothly and efficiently as possible. The Swedish Presidency has made it clear that it will resume the work on gambling begun by the French Presidency in 2008. EUROMAT has already been in contact with the Swedish Ministry of Finance, which is overseeing the Council Working Party on Gambling and Betting.

On 26 May 2009, the European Parliament's Committee on Petitions (PETI) accepted a petition from Stanleybet against the Greek authorities and their protectionist stance in favour of the state gambling monopoly, OPAP. This petition was submitted on 28 January 2009, claiming that the legal proceedings faced by Stanleybet and the closure of its retail outlets "deprive its intermediaries from their current and future livelihoods as well as their personal freedom", violate both the EU Treaty and European Court of Justice case law. The PETI Committee will investigate Stanleybet's petition and has asked the European Commission to conduct an investigation of the circumstances behind the complaint.

This month, the Belgian land-based gambling industry faces the prospects of legal amendments to the relevant gambling laws. On 18 May, the Belgian authorities sent details of potential rules on mandatory player identification technology for all new bingo-type gaming machines operated by Class III gaming establishments (locally-licensed bars and restaurants). Although current laws state that players in Class III gaming establishments must be 18 or over, the proposed changes would require players to verify their age with their national identity cards before they would be able to use the machines. These new rules, intended to prevent underage gambling and to improve player protection policies, will be introduced on 1 January 2010, if approved by the European Commission and the EU Member States by the end of the standstill period on 19 August 2009.

The European Commission has been drawn into the situation between the Dutch government and UK-based online betting firm, Betfair, regarding attempts to introduce a payments ban on online gambling transactions in the Netherlands. The Dutch Ministry of Justice recently sent a letter to national banks urging them to not process payments from customers wishing to place a bet on any legal gaming websites. Betfair made a formal complaint to the European Commission and has begun legal actions against the Dutch government, declaring the actions to be illegal and desperate. EU Commissioner for Internal Market and Services, Charlie McCreevy, threatened to use this opportunity to bring the Dutch government before the European Court of Justice. He said: "We announced last year that at least 10 member states were in contravention of internal market rules on gambling. While many members have engaged, the Dutch have completely failed to. There has been no progress at all".

Belgium's 1999 Gaming Act is set to be changed in the coming months. In late March, the European Commission was notified of the proposed changes to introduce licensing and regulation of internet gambling in Belgium, subject to a standstill period up to 29 June 2009. The Belgian Conseil d'État is also examining the amendments, which show an overall awareness of the need to address issues related to the internet. Scrutiny of the notification by industry analysts has strongly criticised the seemingly restrictive aim to limit online licences to gaming hall, sports betting and casino operators who are already active in Belgium. The Belgian Gaming Commission would be responsible for these licences, as well as for the supervision of betting activities and the development of a "black list" of foreign operators (who would be blocked with the cooperation of local internet service providers). Such restrictions may not be viewed in a positive light by the European Commission, whereby the restriction of services may be considered incompliant with EU law.

In March, France's budget minister, Eric Woerth, released information on the proposed liberalisation of the French online gaming market, which would be limited to online poker and online sports/horserace betting when introduced in January 2010, and sending details to the European Commission for approval. French land-based casino operators have expressed disappointment at their exclusion from the proposals, and are expected to complain to the European Commission, which is already concerned by the limited scope of the online gambling licences and the strict tax and advertising conditions. Similar actions have been taken in Denmark, where the taxation ministry announced a partial liberalisation of the gambling market on 21 April. Last summer, the European Commission's DG MARKT sent the Danish government a "Reasoned Opinion" on its lack of action in reforming its gambling market. As well as consolidating current rules on gambling, the reforms will be aimed at consumer protection, avoiding money laundering and other related criminal activities, and maintaining gambling revenues for charitable purposes.

The European Commission has concluded its infringement investigations of the Portuguese lottery tax regime. The process began in September 2008, when the European Commission sent a "Reasoned Opinion" to the Portuguese government on the rules subjecting all income earned from prizes or winnings from competitions, games or gambling to taxation. These tax rules did not apply to domestic lottery prizes, only to winnings from lottery games in other member states. As a result, the Portuguese government notified the European Commission of its draft reform of these rules, by extending the tax-free status to some, but not all, foreign-based lotteries. The European Commission responded on 14 April 2009 by referring Portugal to the ECJ "for its tax provisions which provide for taxation of the vast majority of foreign lottery winnings whereas winning from national lotteries or from lotteries part of the European Euromillions network are exempt from income tax". That Portuguese citizens are still taxed on foreign winnings is considered to be contrary to the EU Treaty and the EEA Agreement, as they restrict the freedom to provide services. 

European Trade Commissioner Catherine Ashton and her US counterpart, Trade Representative Ron Kirk's hope of finding a solution to the problem of discriminatory online gambling actions against EU operators has lost conviction in recent weeks, as the European Commission report on its investigation has found US legislation guilty of infringing upon US commitments to the WTO General Agreement on Trade in Services. The report will be published when it has been discussed and finalised by the EU Member States. If the US does not make efforts to comply, the WTO will have to become involved. In a press release, the European Commission stated that "the report finds that US laws on remote gambling and their enforcement against EU companies constitute a barrier to market access which has adverse effects on EU economic interests. Furthermore, EU companies are discriminated against: US companies are allowed to freely operate online gambling...while European companies and individuals cannot and even face legal action".
European Commission updated list of dispute settlement procedures underway at the WTO/procedures underway under the regulation on trade barriers

On 19 March 2008, the European Commission announced the closure of infringement investigations against Austria. This decision was due to the approval of amendments made to the 1989 Austrian Gaming Act, whereby the government agreed to extend the protection offered by the gaming legislation to casino players to all EU citizens and citizens of Member States of the European Economic Area (EEA) - previously player protection standards applied only to Austrian customers. This will require more surveillance and socially responsible practices on the part of Casinos Austria, which will have to thoroughly monitor the spending patterns of all its customers and exclude them from their gambling services if necessary.  

On 10 March, the European Parliament plenary finally voted on the report on "Integrity of Online Gambling". The vote was split by 544 MEPs in favour, 36 against and 66 abstentions. Some MEPs decided to split with the decision of their political group and to submit an alternative minority resolution. This amendment was defeated in the plenary vote, with 570 against and 74 in favour. The report has been forwarded to the European Commission for consideration. The European Commission is not required to act on the own-initiative report, which is non-binding. However, it may have implications for any future EU actions on gambling policy. At a European Parliament seminar on gambling on 3 March, Vice-President of the European Parliament, Mario Mauro (EPP-ED, Italy), spoke about the plans to set up an Intergroup on gambling policy, to include representatives of the gambling industry and MEPs with an interest in the sector.
In addition, the Czech EU Presidency has organised a conference on "Gambling in the Internal Market: balancing state and stakeholders interests" to be held on 15-16 June in Prague, as a means of continuing the work of the French EU Presidency (seen in the Progress Report on gambling) and extending the subject to the upcoming Swedish Presidency.

On 5 March, Eric Woerth, the French Budget Minister, announced the details on the liberalisation of the French online gambling market. The text of the draft legislation requires approval from the French Cabinet of Ministers and the Parliament by early summer and has already been notified to the European Commission's DG Enterprise and Industry. The French government has requested that the text is not made available publicly on the TRIS website during this time. Three types of remote gambling licences (for sports betting, horserace betting and poker) will be issued to private operators. An independent licensing and regulatory authority, ARJEL, will oversee these licences and will ascertain that the operators fulfil the suitable criteria. Minister Woerth is sure that the European Commission will approve of the draft law. While he seeks to provide tax relief to French land-based casinos and to lessen the problem of illegal online gambling, he also hopes that it will be enough to bring European Commission investigations of the French gambling system to an end.

Since the beginning of the Obama administration in the US, cooperation on both sides of the Atlantic has been very positive, not least in the area of trade and international trade agreements. The report on the EU investigation into the apparent US discrimination against European online gambling operators will be published in April 2009, but now it appears that enough evidence exists to allow the EU to take legal action against the US before the WTO. However, the European Commission has stated that though legal action under WTO rules might be justified, "the issue should be addressed with the US administration, with a view to finding a negotiated solution".

Composition of the new European Commission will not be confirmed until after the European Parliament elections (in early June 2009) and the second Irish Lisbon Treaty Referendum (expected in October 2009). The existing European Commission will become a "caretaker" Commission until 1 January 2010, giving the new European Commission President time to reorganise the College of Commissioners (if the Irish Referendum allows for the adoption of the Lisbon Treaty) and for the European Parliament's hearings to be held. It should be noted that the "caretaker" Commission would have no powers of legislation, which means that it will be unable to adopt any new proposals until 2010.

OPAP, the Greek gambling monopoly, has been referred to the ECJ) by the two Advocate Generals of the Greek Council of State asking the following questions: Is national legislation that grants a single license to a gambling operator for reasons of fighting criminality, combating money laundering and protecting minors consistent with Articles 43 and 49 of the EU Treaty? If not, then whilst this national legislation is becoming EU compliant, can licenses be granted to other EU operators to offer their services in the country in question? In addition to referring the case to the ECJ, the Advocates General released the opinion that the Greek government may not continue to block foreign operators from entering the Greek market.

The 2nd Responsible Gaming Day was held in the European Parliament on Tuesday 17 February 2009. The event was well-attended by MEPs, European Commission officials, representatives from the Cypriot, Finnish, Hungarian and Swedish Permanent Representations to the EU, gaming experts and press, as well as a variety of stakeholders in the gaming industry. The theme of this year's Responsible Gaming Day, bearing in mind the recent vote on the Integrity of Online Gambling report in the IMCO Committee, was "Integrity and Sports".The programme also included keynote presentations by MEPs Toine Manders (ALDE, Netherlands), Christopher Heaton-Harris (EPP-ED, UK) and Christofer Fjellner (EPP-ED, Sweden), Jakub Dürr, Deputy Minister for European Affairs from the Czech EU Presidency and Petter Nylander, CEO of Unibet.

On 12 February 2009, the standstill period for the European Commission and Member States to evaluate the Finnish amendments to the current Lotteries Act came to an end, and the European Commission released its opinion. It has decided to issue formal comments against these changes, which may serve to intensify the progress of existing investigations into current Finnish gaming legislation. Critics say that they will impose further restrictions on the functioning of gambling services for private operators or operators without a Finnish license. Under the new legislation, media or online gaming companies involved in the operation or marketing of these services could face fines and prison sentences of up to two years. Consumer protection cannot be considered the basis for these restrictions, as state gambling monopolies are not targeted and allowed to continue their own forceful marketing campaigns.

On 11 February 2009, the IMCO Committee voted on the "Integrity of Online Gambling" report, approving it by 32 votes in favour and 10 votes against. The majority of MEPs maintain that the Member States have more capabilities when it comes to protecting consumers from the increased risks related to online gambling. MEPs Gebhardt (PSE, Germany), Ribeiro e Castro (EPP-ED, Portugal) and Toubon (EPP-ED, France) agreed that the debate running up to the vote had been difficult but productive. MEP Manders (ALDE, Netherlands) congratulated the entire Committee on pushing such a controversial issue to a prominent point on the European Parliament's agenda. These opinions were contradicted by a group of IMCO MEPs, led by Malcolm Harbour (EPP-ED, UK), who have drafted a minority resolution claiming that the draft has gone beyond the original scope of the report. The report will be tabled to the European Parliament for the 1st March Plenary session (10-12 March 2009).

The Greek gaming monopoly, OPAP, used its political and legal strength to quash the attempts by UK-based betting group Stanleybet to operate retail outlets in Greece. The current situation is that an Athens administrative court has temporarily allowed Stanleybet to reopen its outlet in Athens prior to a final ruling on the legal case in the coming months, in order to provide "interim relief" to the company. The European Commission is not satisfied with the recent attempts by OPAP to retain its gaming monopoly in Greece. Even the letter from the Greek government, defending the monopoly and arguing against the Reasoned Opinion (issued in February 2008), was deemed insufficient by DG Internal Market and Services.

Although the vote on the own-initiative report, "Integrity of Online Gambling", in the Internal Market and Consumer Protection Committee was postponed until 11 February, a discussion still took place on 21 January to consider the 149 amendments. Rapporteur Christel Schaldemose (PSE, Denmark) was confident that a good compromise could be found to bring about an overall improvement of the report. There are 2 main trends: certain MEPs believe that online gambling is a normal economic activity, which should be dealt with in accordance with EU law, and other MEPs see it as an extraordinary economic activity which should remain under the legislation of the individual EU Member States. She is more inclined to support the amendments proposed by MEPs Manders, Toubon and Korhola, as opposed to those of MEPs Newton-Dunn, Harbour, Heaton-Harris and Riis-Jorgenson. Following the IMCO vote, the European Parliament Plenary will vote on the report in March 2009.

ECJ hears Austrian and Swedish cases

On 14 January the European Court of Justice (ECJ) held three separate oral proceedings concerning cross-border gambling cases, one involving Austria and two involving Sweden. All cases involve prosecutions against individuals, who were charged under national laws restricting gambling operations to state-run entities.  Advocate General Mazak will give his opinion on the Austrian case and Advocate General Yves Bot, who recently gave opinion in favour of the Portuguese and Dutch states, will give his opinions on 23 February 2010. Following this, an opinion is expected on 3 March on the seven gambling cases related to Germany.

European Council appoints President and High Representative for Foreign Affairs 

On the 19 November 2009 anextraordinary meeting of the Council of the European Union finally selected the first ever permanent President of the European Council and the High Representative for Foreign Affairs, posts that will now be filled by now former Belgian Prime Minister Herman Van Rompuy and the UK's Baroness Catherine Ashton respectively. The decision was unanimous and followed months of speculation. The decisions were influenced by many factors and were the result of much compromise and trading between the big and small Member States, and the political right and left. The decisions produced mixed responses in Brussels, as both candidates have relatively low profiles and are not widely recognisable on the world stage. However, others such as German Chancellor Angela Merkel said Mr Van Rompuy would bring consensus and political competence to the presidency. US President Barack Obama also offered his support and said the appointments would "strengthen the EU and enable it to be an even stronger partner to the United States".

In 2003, the European Commission introduced two new directives aimed at controlling the amount of waste electric and electronic equipment generated in the EU every year: the Directive on Waste from Electrical and Electronic Equipment (WEEE) and the Directive on the Restriction of the use of certain Hazardous Substances in Electrical and Electronic Equipment (RoHS). This type of waste equipment ranges from computers, televisions and mobile phones to light bulbs, refrigerators and gaming machines. However, the European Commission was asked to make the directives less complicated and easier to fund and implement, resulting in the recent proposals to revise the WEEE and RoHS directives, released on 3 December 2008. The most profound impact of these amendments will be for companies marketing electrical and electronic equipment in the EU and the European Economic Area.

Discussions on the issue of gambling at the Competitiveness Council on 1-2 December ended in deadlock, with industry ministers from Austria, Cyprus, Finland, Germany, Italy, the Netherlands, Poland, Portugal and Sweden in favour of continued Council negotiations, whereas Malta and the UK, with their open attitude to online gaming, in strong opposition. Nevertheless, these two Member States have agreed that while it should remain a national competence, the cross-border nature of online gambling does require better market regulation and a pan-European standardisation of activities to ensure that national restrictions are "objectively justified, proportionate and non-discriminatory". The report by the French EU Presidency considers the similar challenges faced by all the Member States are sufficient justification of a common European approach to gambling policy.

On 4 November, the European Gaming and Betting Association (EGBA) released a study completed by eCOGRA, to demonstrate the effectiveness of the gaming standards implemented by EGBA members, compared to the standards of the largest gambling monopolies in Europe. The results of the eCOGRA study showed that: 43% of private operator standards are as good as those of the monopolies and 24% are better than those of the monopolies. Thus EGBA contradicts the belief that monopoly control is justified on the grounds of general interests. Previous judgements by the European Court of Justice have already shown that these claims are only justified in certain circumstances, but that a number of Member States are being investigated by the European Commission shows that their arguments in favour of gambling monopolies are unsubstantial.

UK betting firm Stanleybet is calling for the European Commission to be more proactive on the ten outstanding infringement cases, launching its www.fairplayforsportsbetting.eu campaign in the European Parliament on 6 November. The first campaign activity was a letter addressed to European Commission President, Jose Manuel Barroso, demanding that Member States bring their procrastinating techniques to an end, by allowing "fair, open and equal access to all European markets" and by enforcing compliance with the principles of EU law. This coincided with the raids on Stanleybet's land-based retail outlets in Greece on 6 and 8 November, which were thought to threaten OPAP's state monopoly on sports betting and lotteries by "conducting illegal betting...aiming to make monetary gain at the expense of the Greek state."

The French EU Presidency's Progress Report is to be presented to EU industry ministers at the Competitiveness Council on 1 December. The progress report will ask Member States whether they believe that there are sufficient convergences to justify working together, in spite of the national differences already seen at expert level.. The Czech agenda for its EU Presidency is not yet known, but it is felt that the Czech Republic has displayed a certain degree of indifference to the issue of gambling policy. Nonetheless, it has been persuaded by the French EU Presidency to hold at least one expert meeting during its 6-month mandate, in order to carry the issue through to the Swedish Presidency (from July 2009). Sweden has already registered its interest in having gambling on its agenda, even though it is one of the Member States being investigated by the European Commission.

On 16 October, four European countries (Belgium, Ireland, Spain and Sweden) received notification of their referral by the European Commission to the European Court of Justice, due to non-implementation of the EU's Third Anti-Money Laundering (AML) Directive (2005), which had a deadline of 15 December 2007. Casinos and other gambling activities are among those affected by the Directive, which fights against the financing of terrorism, the Directive requires the implementation of certain anti-money laundering tools, for example, identification and verification of customers' identity, record keeping, training of personnel, and further policies for dealing with situations of higher risk.

On 14 October, Advocate General Yves Bot published his lead opinion in the Portuguese case which was referred to the European Court of Justice in 2007. The Portuguese court asked if the monopoly rights granted to the state gaming monopoly infringed upon the freedom of services, establishment and movement of payments. Yves Bot believes that the extension of the monopoly should be considered a "technical regulation" within Directive 1998/34/EC laying down a procedure for the provision of information in the field of technical standards and regulations. He believes that the monopoly right of Santa Casa is within the objectives of Portuguese legislation and that it does not discriminate against other nationalities. The opinion of the Advocate General is currently a proposal to the ECJ, prior to formal judgements.

Hungary has released draft amendments to its current gambling legislation. The Hungarian sports betting market has been under European Commission scrutiny since 2006, which was elevated to a Reasoned Opinion in March 2007, making Hungary one of the first countries make the next step towards defending itself before the European Court of Justice. The proposed amendments will allow EU- and EEA-based online sports betting companies to advertise and operate in the Hungarian market, provided that they have permission from the tax authority. But the Commission will further analyse these amendments, to decide whether or not the regulatory and taxation requirements are too strict to allow effective market entry.

According to an official from the European Commission, the French Presidency's Progress Report on the legal status of cross-border gambling services within the EU will be presented to the Council's working party on Establishments and Services in December 2008. The Presidency is concerned that such a lucrative industry is only legislated via cases brought before the European Court of Justice. The results of the report may not have any effect on future legislation: the Council cannot propose legislation, and subsequent EU Presidencies will neither have to continue the working party nor act on any of its findings. But, if the Progress Report provokes an interested debate among Member States at the next Competitiveness Council meeting, gambling policy may be included on the agenda of next year's Czech Presidency.

MEP Christel Schaldemose (PSE, Denmark) published the first draft of the "Integrity of Online Gambling" own-initiative report on 21 October. The document notes that gambling activities in the EU Member States are strictly regulated at national, regional or local level. This ensures that consumers are protected against addiction, fraud, money-laundering and fixed games. However, it also points out that law on online gambling is not as clear, even though online gambling has many links to problem gambling, for example, giving uncontrolled access to gambling without social constraints. The obvious risks to consumers mean that online gambling can be legitimately restricted. It is essential to improve cooperation between the EU, its Member States, online gambling operators and consumers. A few days before the report was released, the EUROMAT President, Vice-President and Secretariat met with the Rapporteur to present the EUROMAT position on gambling regulations in the EU.

An EU delegation,  under the leadership of M. Jean-Francois Brakeland, head of the European Commission's dispute settlement office, went to the US on 15 September, to investigate apparent discrimination against European online gaming operators. The delegation's activities in Washington coincide with particular events in the US and the EU that could affect the debate even further. On 16 September, the US House Financial Services Committee approved Barney Frank's bill requiring a clearer definition of online gambling allowed in the US, which aims to clarify the regulation of the UIGEA. On 17 September, EU Trade Commissioner, Peter Mandelson, released an answer to Christofer Fjellner MEP's question of July 2008 requesting an explanation of US compensation to the EU following their withdrawal of WTO commitments related to gaming and betting services. The compensatory commitments were agreed upon in December 2007. Gambling companies should not expect any compensation for future losses, but those companies and individuals affected by US decisions feel that a compromise needs to be reached: if the US does not take responsibility for potential losses resulting from its withdrawal, they should not be held responsible for actions that were within the law prior to 2006.

In Portugal, winners of Euromilhões and Liga dos Milhões, lotteries and games organised by Santa Casa da Misericórdia de Lisboa, are exempt from paying income tax, due to the classification of this organisation as an entity carrying out activities of social interest. However, the European Commission has noted that this gives the national lottery an unfair advantage, as Portuguese legislation states that income in the form of prizes or winnings from competitions, games or gambling must come under taxation laws. For not respecting the rule of the EC Treaty, Portugal has received a request to amend its rules in the form of a "reasoned opinion" from the European Commission. It has two months to amend its rules, before being referred to the European Court of Justice.

Greek gaming operator, OPAP, has received the attention of the European Commission in recent months. OPAP has put forward a number of regulating proposals that it hopes will bring an end to the threat of EU infringement investigations. These proposals include: a 10% reduction in promotional spending; greater protection for minors and other vulnerable social groups; making a stronger commitment to reducing gambling in Greece; and adopting a new law on OPAP's relationships with its agents. Despite these plans, the European Commission, represented by EU Commissioner for Internal Markets and Services, Charlie McCreevy, continues to question OPAP's belief that gambling legislation is more effective under monopoly operators. Unless additional actions are taken to regulate internet betting, it is expected that these proposals are merely going to benefit larger foreign gaming operators.

The European Commission received confirmation of the approved amendments to Austria's main gambling law (the 1989 Gambling Act). Due to the changes in the gambling laws, EU-based casinos will now be able to advertise their services in Austria, based on the consent of the Austrian Finance Ministry. European money laundering and player identification standards will also be extended across the Austrian casino sector, conforming to the EU's Third Money Laundering Directive of 2005. These actions are a response to the infringement investigations launched by the Commission in April 2006, with the Austrian government hoping to bring to an end the in-depth scrutiny of its gaming market. Concerns have been raised regarding the perceived benefits to Austria's public gaming monopolies. However, there is room for further changes before President Heinz Fischer has to sign the amended Gambling Act.

The unexplained postponement of the proposed meeting between an EU delegation and the Office of the US Trade Representative to discuss complaints against the treatment of EU-based online gambling firms has intensified the already difficult situation. It is possible that EU/US relations could be damaged by claims that the operators are facing unfair and inconsistent discrimination. Criticism even comes from within the US, as earlier in August, two US Representatives sent letters to the US Department of Justice warning of the worsening problem, which could lead to significant European market losses and further trade sanctions for the US, with a knock-on effect for trade relations at the World Trade Organisation. It remains to be seen if this topic becomes a priority for the Office of the Trade Representative, with a new date for the meetings anticipated for September.

On 14 July 2008, MEP Christofer Fjelnner (EPP-ED, Sweden) submitted a Written Question to the European Commission regarding the US compensation to the EU for its withdrawal from WTO commitments.  The US has now offered compensation, amoung others, to the EU in the form of greater market access to business sectors such as the postal and courier services, research and development, technical testing, and storage and warehouse. MEP Fjellner enquired about the compensation agreement between the EU and the US and specifically asked how the European Commission plans to ensure that European gambling businesses are compensated for their losses.

EU Trade Commissioner Peter Mandelson has reportedly written to US Trade Representative Susan Schwab, early in July seeking an agreeable solution to what has become an irritable EU-US dispute over online gambling. Commissioner Mandelson is asking Ms. Schwab to broker a temporary suspension of investigations against EU online gambling operators and individuals with the attorney-general at the Department of Justice. He argued that the temporary freezing of DoJ action would not affect the DoJ's position and at the same time would maintain the interests of European companies.

There are currently 15 pending cases before the ECJ regarding gambling and betting as well as additional infringement proceedings which are nearing referral, Combined with the fact that the highest administrative court in France, the Counseil d'Etat, submitted another two questions in this respect for a preliminary ruling to the ECJ, it is now expected that the ECJ will seek to clarify the legal questions raised on the compliance of a gaming monopoly with EU law.

The European Commission (DG Internal Market) will refer, if agreed by the College of Commissioners in September, Sweden and Denmark to the European Court of Justice (ECJ) for infringement of Internal Market rules. Further to an initiative of the French Presidency, gambling policy was added to the agenda of the Council's Working Party on Establishments and Services, whose first meeting on the issue took place on Wednesday 16 July 2008, where the French Presidency submitted a questionnaire on gambling policy. Responses are expected in September 2008. Furthermore, the European Parliament has started an own-initiative report titled "The Integrity of Online Gambling". The Rapporteur will be MEP Christel Schaldemose (PES, Denmark) who will be shadowed by MEP Eija-Riitta Korhola (EPP-ED, Finland). The European Parliament's Internal Market and Consumer Protection Committee (IMCO) will be responsible for the own-initiative report.

Following a report from 21 June 2008, the debate over online gambling between the EU and the USA will intensify after the USA denied the accusation that European companies are being discriminated against. The European Union issued a formal question to US Authorities after a complaint was lodged, by the Remote Gambling Association (RGA) in March 2008. In her answer, Susan Schwab, US-trade representative, denied the allegation of discriminatory enforcement of US gambling laws against European operators. She said that the Commission's questions are based on wrong assumptions and that charges against European gambling companies were not brought on the basis of nationality.

The European Commission referred Spain to the European Court of Justice (ECJ) for imposing discriminatory taxes on lotteries and betting winnings. The suit is being brought on the grounds that, under current legislation, winnings from all types of lotteries, games and betting organised outside of Spain are taxed, whilst winnings from certain lotteries, games and betting organised within Spain are exempt from income tax.

On 19 June 2008, 9 MEPs from the EPP-ED, Simon Busuttil and David Casa of Malta, Christopher Heaton-Harris, Martin Callanan and Charles Tannock of the UK, Cristofer Fjellner of Sweden, Werner Langen of Germany, Pilar del Castillo of Spain and Petr Duchon of the Czech Republic, and one PES MEP, Erika Mann of Germany, stated their view that the legislative reforms of the gambling markets promised by certain Member States are nothing more than tactics aimed at delaying real progress at European level. They signed a letter sent to Commissioner McCreevy demanding that the European Commission accelerate the on-going infringement proceedings in the gambling sector and refer immediately to the European Court of Justice those Member States whose legislation is in breach of EU law.

On 1 July 2008 France will hold the Presidency of the EU for the second half of 2008 as it takes over from Slovenia. On 20 June 2008 during an informal meeting, Mr. Philippe Leglise-Costa, Deputy Permanent Representative of France to the EU, presented the key policy issues to be addressed by the upcoming French Presidency of the EU. With regards to gambling, Mr. Leglise-Costa is quite confident that discussion on gambling policy in Council will start during the French Presidency with a Working Group on gambling policy established within the Council.

The fourth European Gambling Briefing took place in Amsterdam on 13 and 14 May 2008. The two-day conference saw the participation of industry representatives, trade associations and policymakers from Member States and the European Union. Mr. Antoja, former EUROMAT President, spoke at the conference and among others stressed the importance of proper sectoral definitions as part as an overall exercise to regulate some or all sectors of the gambling industry, adding that the gaming and amusement sector should remain the sole remit of national regulators.

By the end of August 2008, Italy will, as a result of an amended decree, open a new bid-process for the 329 betting shop licences that were, according to the EU, extended unfairly in 1999. The announcement by the Italian government that it was to re-launch the bidding process was both inevitable and unavoidable given the decision of the ECJ on 13 September 2007, which clearly ruled that the move, in 1999, to grant extensions to the 329 existing licences was illegal.

During the ECJ public hearing on 29 April in Luxembourg the Portugese Football League/Bwin and the Portugese monopoly lottery and betting operator Santa Casa da Misericórdia de Lisboa, together with EU-Member States, commented on the raised issue. There was general agreement on the point that EU Member States must apply their policies restricting gambling in an consistent manner. All participants, with the exception of Bwin, were resolute that the critical "consistency requirement" must not be applied across sub-sectors of the gambling industry. Advocate General Yves Bot said that he would issue his lead opinion on the case on 9 September 2008. A final ECJ ruling is likely to follow several months later.

On Thursday 8 May, the European Parliament adopted an Initiative report by Manolis Mavrommatis (EPP-ED, Greece) by a large majority (518 for, 49 against with 9 abstentions) on the Commissions White Paper on Sport. MEPs welcomed the adoption of the White Paper on Sport, presented by Commissioner Jan Figel last summer, but raised concern at possible deregulation of the gambling market. The Commission's original policy document made little mention of gambling, but last week MEPs added several points in relation to gambling, notably on the role of state lotteries in the funding of amateur sport.

Betting firms are convinced that they are approaching a breakthrough moment in their battle to compete across borders. Following a report in the European Voice in late April, Internal Market Commissioner Charlie McCreevy is expected to take a number of countries to the European Court of Justice (ECJ) in the next weeks. The infringement cases against Denmark, Finland, France, Greece, Hungary, the Netherlands and Sweden, where Reasoned Opinions have been sent, could all be referred to the ECJ.

On 7 May 2008 gambling policy was on the agenda for discussion at a COREPER I meeting.  Based on a proposal from the Netherlands, backed by Belgium, Germany, Finland, and a few other countries, COREPER I was expected to decide whether to establish a working group on gambling policy at Council level with a view to putting a halt on the increasing number of gambling related infringement proceedings by the European Commission.

The European Court of Justice held a hearing on 29 April 2008 on Bwin and the Portuguese Football League's challenge to the gambling monopoly held by Portugal's Santa Casa da Misericórdia. The two parties clashed over whether Portugal's restrictive gambling policy could be justified by the public order interests cited by the Portuguese government.

Following the Italian Economy Ministry's submission of its draft online gambling law to the European Commission and the Member States at the beginning of the year, the European Commission responded on the 29 April with its own detailed comments to the Italian government highlighting several things it dislikes in the text. The Italian decree had to be notified to the European Commission and the Member States according to the provisions of Directive 98/34/EC. Malta has been the most critical of the Member States to respond.

Following announcements of Budgetminister Woerth earlier this month and Primeminister Fillon on the 24 April France wants to change outdated gambling laws and proposes an "ouverture maîtrisée" (controlled opening) and regulation of the market. Observers believe that France will get ready to comply with the European Commission's Reasoned Opinion, demanding the opening of France's sports betting market to private competition, in order to draw a line under the European infringement proceedings before it assumes the EU presidency in July 2008.  

On 17 April 2008, the first conference on responsible gaming took place in the European Parliament. The online gambling industry believes that the services it supplies are a service like any other and, with the growth of the Internet, it wants a European market with a stable legal framework that protects consumers. It was argued that in an obvious contradictory interest, Member State governments and public gambling monopolies are jealously guarding their tax income and are hostile to the arrival of cross-border service suppliers competing with the traditional operators.

On 17 April 2008, a full day conference on responsible gaming will take place in the European Parliament. The "Responsible Gaming Day" will initiate the first broadly based EU political discussion on responsible gambling online. The event will take a look at what has already been achieved in the field of responsible gaming in order to ensure that consumers can play in a safe, reliable and secure online environment. It will also provide an opportunity to address future challenges and discuss how co-operation between all the stakeholders involved can be enhanced, with a particular focus on underage gaming, advertising and problem gambling.

After the beginning of infringement procedures from the EU over Swedens gaming laws prosecutors have  been advised to halt their attempts to prosecute media organisations that accept advertising from foreign bookmakers until the EU completes its infringement processes. This means that many of the ongoing cases will expire before they can be tried.

The European Commission decided to launch an investigation into United States measures affecting foreign suppliers of Internet gambling services, within the framework of its Trade Barriers Regulation (TBR). The decision follows a complaint lodged by the Remote Gambling Association (RGA) in 2007. The European online gambling industry claims that the US should not be allowed to enforce gambling laws selectively against foreign suppliers, with respect to services offered at a time when the US had WTO commitments permitting online gambling.

On 10 March 2008, the EU has announced that it would open an investigation into US Internet gambling laws under Trade Barriers Regulation (TBR) framework after a complaint filed by the Remote Gambling Association (RGA). The US authorities prevent foreign companies from offering Internet gambling services in the US and are investigating EU companies but the DOJ has not been targeting US companies that were offering equivalent services. The challenge made by the RGA concerns the fact that the United States measures violate Articles of the GATS (General Agreement on Trade in Services). The European Commission will now examine whether these actions are in breach of international trade rules and discuss the matter with the US authorities.

The Association of Charity Lotteries in the European Union (ACLEU) was officially launched in Brussels in early March 2008 calling upon EU policymakers to protect the model of charity lotteries. With a view to preventing that the opening of the sector to commercial operators, offering very high prizes to players and very little money to good causes, ACLEU states that national lottery monopolies should be maintained within the European Union. The model of charity lottery funding received the backing of Jan Figel, Commissioner responsible for Education, Training, Culture and Youth, who said that Charity lotteries can be one funding tools for civil society.

On 6 March 2008 representatives of horseracing professional organisations from different European countries met at the European Parliament in Brussels to express their concern and to propose solutions to ensure the future of their activity, which is facing the growth of online betting. The Seminar was held at the invitation of MEP Jacques Toubon (EPP-ED, France) and under the patronage of Joseph Daul (EPP-ED, France), President of the European People's Party and European Democrats (EPP-ED) group. Debates put forward the diversity of present situations, in particular regarding betting models.

The 8^th Euro Cash Users Group meeting took place at the European Central Bank in Frankfurt on Thursday 28^th February 2008. A number of stakeholders met representatives from the ECB and the EC to discuss developments related to euro coins and banknotes. With regards to euro coins, it was argued that 211,100 counterfeit euro coins were removed from circulation in 2007. This marks a significant increase (29%) from 2006 but is marginal compared to the total number of 75.8 billion genuine coins in circulation. Some 90,000 counterfeit coins were detected before they were put in circulation, showing great efforts made by Member States authorities to tackle the problem. The 2€ coin is confirmed to be the most counterfeited one, followed by 50 euro cents and 1€ coins.

On 27 February 2008, the European Commission has sent the governments of Greece and the Netherlands "reasoned opinions" regarding their sports betting law, supposedly restricting free provision of services I the Internal Market. The two countries have now two months in which to respond before the matter is referred to the European Court of Justice. Additionally on 31 January 2008 the European Commission had already launched infringement proceedings against Germany and Sweden because of certain provisions of their gambling legislation.

The European Parliament's Internal Market and Consumer Protection (IMCO) Committee chaired by Arlene McCarthy (PES, UK) hosted a hearing on Internal Market aspects of online gambling and online sports betting on 14 February 2008. In three sessions the IMCO Committee and key players discussed: the EU and International legal framework of online gambling and online sports betting, market liberalisation vs. social responsibility and fraud in online gambling and online sports betting. Panellists ranged from a former Advocate-General at the European Court of Justice, to representatives of the UK Gambling Commission, EGBA, the European State Lotteries and Toto Association and the Advisory Body to the German Länder.

On 31 January 2008 the European Commission has launched infringement proceedings against Germany and Sweden because of certain provisions of the German and Swedish gambling legislation.  While the German case relates key restrictions in the provision of gambling services enshrined in the new gambling legislation which entered into force on 1 Jan 2008 such as the total prohibition of games of chance on the Internet; advertising restrictions and the prohibition on financial institutions. The Swedish case instead relates to Poker games and tournaments which are today offered in Swedish international casinos. Swedish legislation prevents online poker games and tournaments offered by operators licensed and regulated in other EU Member States. Sweden and Germany have two months to respond to the European Commission.

In the European Parliament, the Committee for Internal Market and Consumer Protection will hold a workshop on online gambling on the morning of 13 February 2008. A final agenda has yet to be published but it will centre primarily around existing legislation and possible improvements which might keep the sector in line with Single Market principles while still protecting consumers.

Around 561,000 counterfeit euro bank notes and 211,000 counterfeit euro coins were removed from circulation in 2007. The number of seizures of banknotes is in line with previous years (up 0.7% on 2006), but there was a significant rise in the number of coins seized (+26%).

On 20 December 2008 Toine Manders (ALDE, Netherlands) submitted a Written Question to the European Commission on the changes in Dutch slot machine taxes. Mr. Manders is critical that a tax increase on gaming machines applies to all operators, while a reduction in the tax on table games will only benefit the state monopoly.

German and Italian MEPs have questioned the Commission about their respective national gambling legislation in recent written questions. The German enquiry refers to upcoming legislation covering requirements of financial institutions. The Italian enquiry refers to the perceived lax enforcement of national laws on sports betting.

Slovenia launched its EU presidency on 1 January 2008. Slovenia will hold the Presidency of the EU for the first half of 2008. Slovenia will be the first Member State who joined the Union in 2004 to hold the chair of the 27-member bloc. The Slovenian government has promised to closely monitor the ratification of the Lisbon Treaty, and focus on economic growth, peace in the Balkans, energy, climate change, and cultural dialogue.

The European Commission has launched a second stakeholder consultation on the review of Directive 2002/95/EC, which covers restrictions of the use of certain hazardous substances in electrical and electronic equipment. Contributions must be submitted by 13 February 2008.

The eurozone has expanded with Cyprus and Malta adopting the single currency on 1 January 2008, thus bringing to fifteen the number of participating countries. Additionally, in Denmark the Prime Minister has promised to hold another referendum on his country's possible accession to the monetary union, while Poland's Finance Minister has included accession to the euro as one of his top three priorities by the end of the newly elected government term of office, i.e. 2012.

On Monday 17 December 2007 in Geneva, the United States concluded bilateral arrangements with Canada, Japan, and the EU on trade compensation packages which foresee a broader opening of certain sectors of activity, in order to compensate players in these countries for the losses created by US legislation on on-line gambling and betting.

Romania held its first elections ever for the European Parliament on 25 November 2007. The centre-right opposition, the Democratic Party, won the largest share of the vote. MEPs from this party will join the EPP-ED conservative political group in Parliament. Turnout was low at under 30%.

The European Parliament approved legislation on audiovisual media services on 29 November 2007. However, the new laws will not include audiovisual gambling services, as the European Council insisted on an exemption for the industry. Member States will have two years to transpose the EU's decision into their own national law.

Charlie McCreevy, the EU's Commissioner with responsibility for the Internal Market, has unequivocally ruled out the possibility of EU legislation for the gambling industry within his term of office. The Commissioner made the comments in response to a question from Dutch Liberal MEP Toine Manders, after presenting the Single Market Review in the European Parliament on 21 November 2007.

On 20 November the President of the European Commission, José Manuel Barroso, launched a new Internal Market Strategy which will focus on the role of consumers and SMEs. Barroso also suggested the Commission would take a slightly more laissez-faire approach, promising more of an emphasis on targeted initiatives and less legislation.

A panel of experts in gambling policy and WTO matters met in Brussels during a seminar entitled "The US, the EU and WTO Internet Gambling Dispute: implications for EU/US Trade Policy" on 10 October 2007. Recent developments on the WTO case show that the US tabled a proposal for a compensation package to the EU on 18 September 2007 which did not sufficiently compensate for the loss of a gambling market worth 100 billion dollars (69.5 billion euros). The EU has therefore decided to wait until the WTO has defined the level of compensation for Antigua and Barbuda before it quantifies the level of compensations (estimated at tens of billions of euros). The WTO is expected to announce the level of compensation for the Caribbean island on 30 November 2007.

The European Parliament adopted an own-initiative report by MEP Karl-Heinz Florenz (EPP-ED, Germany) on the Commission's Green Paper on strategic options at EU level for moving towards a smoke-free Europe. The report points out that some 650,000 people die every year in the EU from cigarette smoking, along with 80,000 who die due to the effects of passive smoking. The European Parliament therefore urges Member States to introduce a total ban on smoking in confined workplaces within the next two years.

The International Responsible Gaming Organisation (IRGO) held its opening conference on Responsible Gambling in Stockholm on 18-19 October 2007. The conference, opened by IRGO co-directors, Mark Griffiths (Professor, Nottingham Trent University) and Richard Woods (chartered psychologist), brought together gambling psychologists, industry operators and industry regulators to examine the challenges posed by problem gambling.

The European Commission published a Working Document following its consultation on the Green Paper on the Review of Consumer Acquis. The Commission received over 300 responses, the result of which shows a strong support for harmonisation of consumer rules across the EU, tightening-up and streamlining the Consumer Acquis, e.g. introducing common definitions of consumers, professionals and delivery, rules on withdrawal rights and the insertion at EU level of a "black" list of unfair contract terms.

On 19 October 2007 EU leaders of the 27 Member States approved the Reform Treaty of the European Union (known as the "Lisbon Treaty"). The Treaty gives the European Union a new institutional framework in time for the next European Parliamentary elections to be held in June 2009. The Lisbon Treaty will be officially signed by heads of state on 13 December 2007 in Lisbon and the ratification process will start immediately after through 2008 by either Parliamentary vote or referendum. The Treaty is expected to enter into force on 1 January 2009.

On 4 September 2007, the European Parliament's Internal Market and Consumer Protection (IMCO) Committee adopted the draft own-initiative report by MEP Jacques Toubon (EPP-ED, France) on the European Comission's Single Market Review.  The report seeks to revise the Single Market to renew citizens' confidence in the benefits they can obtain from completion of the Single Market. Particular emphasis is placed on the removal of existing ‘ambiguity'.

The European Parliament adopted the report by MEP Béatrice Patrie (PES, France) on the European Commission's Green Paper on the Review of the Consumer Acquis in Plenary. The European Parliament agreed with the European Commission the need to create a real Internal Consumer Market by simplifying and improving the regulatory framework for professionals and individuals. Concurring with the Rapporteur, MEPs felt that more coherent and modern Community legislation would increase Europeans' legal security and confidence in the Internal Market, based on three factors: the development of online shopping, which has rendered legislation obsolete, inconsistencies in the Community Acquis and "minimal" harmonisation which have led to fragmentation of the legal environment.

The European Commission extended the response deadline of France and Greece to infringement enquiries over alleged barriers to foreign gaming firms by two more months. The situation in France has changed following a High Court ruling in July 2007, which overturned a ruling that banned a Maltese firm, Zeturf, from offering online horse race betting in France. The deadline for Greece and France is now 29 October 2007.

On 6 July 2007, the European Commission referred Spain to the European Court of Justice (ECJ) for the infringement of Internal Market regulations. In Spain, lottery winnings from lotteries organised abroad are subject to progressive income tax, whereas an exemption from income tax is applied on the income resulting from lotteries organised in Spain by certain institutions.

On 9 July 2007, IMCO adopted a report on the Single Market Review, drafted by MEP Jacques Toubon (EPP-ED, France), and presented its vision for the future of the Single Market in the 21st century. The Commission Review aims to improve the functioning of the Single Market.

The Portuguese Presidency announced its preference for the integration of consumer policy across all policy areas. The draft own-initiative report on the Green Paper on the Review of the Consumer Acquis is due to be voted in Plenary on 3-6 September 2007.

On 17 July 2007, the European Parliament's Internal Market and Consumer Protection (IMCO) Committee unanimously adopted an own-initiative report on the obligation of cross-border service providers. Of primary concern was the lack of harmonisation of Member State law with regards to service provider obligations and consumer protection.

European Heads of State officially announced that Malta and Cyprus are ready to enter the euro zone on 1 January 2008 at the Summit in Brussels on 21-22 June 2007. It will then be up to Finance Ministers at the July Economic and Financial Ministerial meeting to take a decision on establishing the irrevocable conversion rates.

The European Parliament postpones its Plenary vote on the Council Common Position on the draft Audiovisual Media Services (AVMS) Directive, (the proposed text continues to exclude gambling services from its scope of application) until September 2007.

The European Commission criticises German Gambling Treaty for the second time, arguing that it is ‘incompatible' with Internal Market law. The Treaty was due to be voted on 14 June, but has now been postponed until further notice.

The Portuguese Republic will hold the next Presidency of the EU from 1 July to 31 December 2007. The Portuguese government announced its priorities for its upcoming presidency and stressed its interest in revising the 2000 Lisbon Agenda, in anticipation of the final phase of the (2008-2010) Lisbon strategy.

The European Commission has formally reminded the Greek government of its obligation to lift its total ban on gaming machines, including computer games. The European Court of Justice in Case C-65/05 of 26 October 2006 ruled that the Greek laws which ban the installation and operation of all gaming machines violate a number of Internal Market principles.

The European Commission has taken action to put an end to obstacles to the free movement of sports betting services in France, Greece and Sweden. The Commission has formally requested France and Sweden to amend their laws following consideration of their replies to letters of formal notice sent in April and October 2006 in the form of "reasoned opinions". If there is no satisfactory reply within two months, the Commission may refer the matter to the European Court of Justice (ECJ). In relation to Greece the Commission has decided to send an official request for information on national legislation restricting the supply of sports betting services. This takes the form of a letter of formal notice, the first step in the Article 226 infringement procedure. Greece has two months in which to respond.

On 30 May 2007, the Court of the European Free Trade Association (EFTA) gave its ruling on case E-3/06 (Ladbrokes vs. the Government of Norway) on restriction to the freedom of establishment and freedom to provide services in the European Economic Area (EEA).

The European Commission released its convergence report and concluded that both Cyprus and Malta fulfil the necessary conditions to adopt the euro. The Commission has proposed to the Council that both countries adopt the euro on 1 January 2008 on the grounds that they have achieved a high degree of sustainable economic convergence with the euro zone.

The Commission published a report that showed most Europeans were in favour of anti-smoking policies, with the greatest support in Ireland, Sweden and Italy where they are already in place. The consultation period on the ‘Smoke-free Europe' Green Paper is due to come to an end next month.

The European Commission has criticised the exclusion of the Unibet.com cycling team from the 2007 Tour de France bike race. The Amaury Sports Organisation, the event organisers, had imposed the ban because the team's gambling sponsor is not registered in France, and on-line betting is furthermore illegal there.

On 24 May 2007 Council adopts Common Position on Draft Audiovisual Media Services Directive. The European Parliament is expected to vote at Plenary on 18 June 2007 in an expedite second reading. The draft Directive continues to exclude gambling services from its scope of application.

Following the European Commission's presentation of its consolidated revised version of the draft Audiovisual Media Services Directive, the European Parliament's Culture and Education (CULT) Committee discussed the Commission's revised proposal. Rapporteur Ruth Hieronymi (EPP-ED, Germany), welcomed the proposal, which continues to exclude gambling services from its scope of application.

The European Parliament's Internal Market and Consumer Protection Committee held a public hearing on the review of the Consumer Acquis, where the future shape of consumer protection rules in the EU was discussed. The majority of participants (including responsible Commissioner Meglena Kuneva, MEPs and Council representatives) agreed on the need to adopt a horizontal instrument spanning the eight existing Directives corrected by the review but were split on the degree of harmonisation needed.

The European Commission has launched a process to review the Directive on the Restriction of the use of certain Hazardous Substances (RoHS) in electrical and electronic equipment and has issued a call on stakeholders to contribute information on the implementation of the Directive by 22 May 2007.

The European Court of Justice is expected to announce a decision within the next three months on case C-260/04 (European Commission against Italy) regarding the current Italian licensing system for bets on horse races. Advocate General Eleanor Sharpston argued in her opinion, published on 29 March 2007, that none of the arguments advanced by Italy are capable of justifying the Italian restrictive licensing regime.

Further to a preliminary opinion by Advocate General, Mr. Damaso Ruiz-Jarabo in May last year, the European Court of Justice is expected to deliver its final ruling on 6 March 2007 on the Placanica case, which relates to Italian legislation regarding intermediaries facilitating the placing of bets with online bookmakers licensed outside Italy.

European Ministers for Culture and Media held a meeting on the 12-13 February 2007, discussing the draft Audiovisual Media Services (AVMS) Directive. The Council of the European Union confirmed that gambling services are excluded from the scope of the draft Directive.

On 30 January 2007, the European Commission published a Green Paper on smoke free environments; a consultative process is being organised and comments can be submitted by May 2007.

A Working Group of the Council of the European Union met on 29 January 2007 to discuss the draft Audiovisual Media Services Directive, further to the adoption by the European Parliament of the report by MEP Ruth Hieronymi (EPP-ED, Germany) on 13 December 2006. Gambling services were briefly discussed, and the Group is expected to conclude that specific exclusion is not required as any service whose main purpose does not consist of the provision of audiovisual media content does not fall under the scope of the draft Directive.

On 1 January 2007 the European Union expanded its membership to 27 Member States (by including Bulgaria and Romania), Slovenia joined the single currency, and Germany assumed the rotating presidency of the Union.

The Framework Services Directive was published in the Official Journal of the EU on 27 December 2006; Member States have now 3 years to transpose the Directive into national legislation. Gambling services do not fall under the scope of this Directive.

Germany will assume the Presidency of the Council of the European Union from Finland on 1 January 2007 and will hold the Presidency for six months, followed by Portugal, which will take over on 1 July 2007.

The draft Audiovisual Media Services Directive was voted on in the European Parliament during its Plenary session in Strasbourg on 13 December 2006 and gambling services remain excluded from the scope of the Directive.

On 11 December 2006 the Council adopted the draft Framework Services Directive without discussion at the Competitiveness Council meeting. The final text excludes gambling services from its scope of application.

Euromat launched book on ‘The Future of Gaming and Amusement in Europe' in the European Parliament in a launch luncheon hosted by MEP Jacques Toubon (EPP-ED, France) and was attended by Members of the European Parliament and officials of the European Commission on 28 November 2006

On 15 November 2006, the European Parliament Plenary session voted on the draft Framework Services Directive, resulting in the adoption of the Council's Common Position in its entirety, with gambling services remaining excluded from the scope of the Directive

On 14 November 2006, Commissioner McCreevy responded to the Oral Question on Gambling asked by Arlene McCarthy, Chair of the Committee on Internal Market and Consumer Protection, during the Plenary session in Strasbourg, stating that EU-wide harmonisation of legislation regulating gambling at present was not likely

The European Parliament's Culture and Education (CULT) Committee adopted Rapporteur Ruth Hieronymi's (EPP-ED, Germany) first reading report on the draft Audiovisual Media Services Directive on 13 November 2006, which included an amendment excluding gambling from the scope of the draft Directive

The European Parliament's Internal Market and Consumer Protection (IMCO) Committee held two meetings on the draft Framework Services Directive which resulted in the adoption of the Council's common position, without changes, i.e. gambling remains outside the scope of the Directive. The final vote in Plenary is expected on 16 November 2006.

On 12 October 2006, the European Commission made public the final version of the study on gambling in the EU Internal Market on its DG Internal Market and Services website. The study was carried out and completed by the Swiss Institute of Comparative Law earlier this year at the request of the European Commission.

The European Parliament's Internal Market and Consumer Protection (IMCO) Committee has finalised the text of the Oral Question on Gambling, which will be raised in Plenary on 13/14 November 2006.

The Commission sent letters of formal notice to Austria, France and Italy, regarding national legislation restricting the supply of gambling services further to the infringement proceedings launched against 7 Member States in April 2006.

On 26 September 2006, the European Commission confirmed that Bulgaria and Romania are ready to join the European Union on 1 January 2007. However it warns a few restrictions could apply.

An Oral Question to be posed to the Commission was presented by MEP Toine Manders (ALDE, The Netherlands) in the IMCO Committee which tackles the infringement proceedings relating to the gambling sector launched by the Commission earlier this year.

Rapporteur Evelyn Gebhardt (PSE,Germany) revealed her 11 amendments to the Council's Common Position on the draft Framework Services Directive in the European Parliament's Internal Market and Consumer Protection (hereafter "IMCO") Committee on 13 September 2006. Gambling remains excluded from the scope of the draft Directive

The draft Framework Services Directive returns to the European Parliament on 4 September 2006 for second reading following approval of a Common Position in Council on 24 July 2006

Hungary will present its euro convergence report to the European Commission by 1 September 2006. Hungarian Finance Minister, Mr. Janos Veres, believes Hungary will join the eurozone between 2011 and 2013

The European Commission has confirmed to EUROMAT that gambling services are excluded from the draft Audiovisual Media Services Directive as they are not considered to be audiovisual media services, and as such they doubt the necessity to introduce an amendment excluding gambling from the proposed Directive

EU Ministers meeting in Brussels for the Competitiveness Council, adopted a Common Position on the draft Framework Services Directive, two months after a political agreement was reached under the Austrian Presidency. The Council's text will now be referred back to the European Parliament for second reading in September.

The European Court of Justice issued a preliminary ruling on the case ‘United Utilities plc v Commissioners of Customs & Excise Reference' which may impose additional tax bills on gaming and lottery operators with outsourced operations. The European Court of Justice argues that gambling operators' outsourced operations (such as call centres) do not constitute a betting activity and are therefore not exempted from VAT.

EU Ministers met in Brussels for the Economic and Financial Affairs (Ecofin) Council and concluded the procedure which will allow Slovenia to adopt the euro on 1 January 2007. Slovenia is the first Member State from the last EU enlargement to join the euro zone.

Finland takes over the Presidency of the European Council from Austria on 1 July and will hold it for the next six months before it passes to Germany. Among the Finnish Presidency priorities, the draft Framework Services Directive, enlargement of the euro zone in 2007, the Rome I Regulation on contractual obligations.

European Commissioner for Internal Market and Services, Charlie McCreevy has answered MEP Jacques Toubon's (EPP-ED, France) Written Question on the definition of gambling and has confirmed that all gambling activities remain excluded from the scope of the draft Framework Services Directive.

The Swiss Institute of Comparative Law has completed its study on gambling in the EU and forwarded it to the European Commission which has 45 days to approve it. The study will be available in electronic form on the European Commission's DG Internal Market and Services and the Swiss Institute's websites at the beginning of August.

The European Court of Justice Advocate-General Damaso Ruiz-Jarabo gave his opinion on the Placanica case on 16 May defining the Italian regime discriminatory and inconsistent with the EC Treaties, with respect to the allocation of licenses. According to him the 2004 Gambelli ruling did not provide a complete examination of the impact of the EC Treaty fundamental freedoms on the gambling sector.

The Austrian Presidency secured a political agreement on the draft Framework Services Directive (FSD) at the Competitiveness Council on 29/30 May. The political agreement of the Council continues to exclude gambling from the directive and does not alter the definition of gambling as worded in the Commission's amended proposal. The Council Common Position will be formally adopted in a forthcoming meeting and then forwarded to the European Parliament for a second reading.

The European Commission Directorate General for Internal Market and Services has launched an online consultation on the future of Internal Market policy. Contributions are welcome from citizens, business, representative bodies, public administrations, other EU institutions, academia and think tanks.

EU Competition Ministers met on 20-22 April 2006 to discuss the Draft Framework Services Directive. EU Competition Ministers' confirmed their broad support for the Commission proposal, which could mean adoption of the proposal in Q2 or Q3 of this year. The Council appears set to keep gambling activities outside the scope of the directive.

The study carried out by the Swiss Institute for Comparative Law (SICL) on Gambling Services in the EU Internal Market was made public on 24 April and presents current gambling legislation and jurisprudence of each of the EU Member States. The SICL seeks comments on the study from stakeholders which will be incorporated to produce a final study to be submitted to the European Commission.

On the basis of complaints made by a number of service providers, the European Commission has decided to officially question seven Member States (Denmark, Finland, Germany, Hungary, Italy, the Netherlands and Sweden) on their national legislation restricting the supply of sport betting services. Those Member States will receive a letter of formal notice (the first step in an infringement procedure under Article 226 of the EC Treaty) and will have two months to respond. The Commission will examine whether those restrictions in place are compatible with Article 49 of the EC Treaty on the free movement of services.

The Commission presented on 4 April its provisional amended proposal for a Framework Service Directive. In its redraft, the European Commission endorsed the European Parliament decision to completely exclude gambling from the scope of the Directive from the transitional derogations and from the list of sectors for additional harmonisation. On 20-22 April, the Competitiveness Council (composed of the Member States' ministers) will hold discussions on this amended Commission proposal.

The Swiss Institute of Comparative Law indicated to the EUROMAT Secretariat that the study on gambling in the EU Internal Market was delivered to the European Commission on Friday 24 March 2006. The latter now has 30 days to make comments. The stakeholders’ meeting will take place in Geneva on 8 May. Mr. Sychold will send invitations to all stakeholders who contributed to the study.

On the basis of complaints made by a number of service providers, the European Commission has decided to officially question seven Member States (Denmark, Finland, Germany, Hungary, Italy, the Netherlands and Sweden) on their national legislation restricting the supply of sport betting services. Those Member States will receive a letter of formal notice (the first step in an infringement procedure under Article 226 of the EC Treaty) and will have two months to respond. The Commission will examine whether those restrictions in place are compatible with Article 49 of the EC Treaty on the free movement of services.

Commissioner for Economic and Monetary Affairs Joaquín Almunia has selected six challenges that euro candidate countries have to meet before joining the single currency: Be better prepared for the Big Bang introduction of the euro; focus more on the training of businesses and public administrations; extend bank opening hours, monitor price increases, convince the public of the benefits of the new currency, and implement a communication strategy.

In mid-April, the Swiss Institute of Comparative Law plans to release the draft Study on Gambling Services in the Internal Market of the European Union, which was commissioned by the European Commission. The Meeting of Stakeholders is provisionally scheduled for 8 May 2006 in Geneva.

At the Plenary Session in Strasbourg on 16 February 2006, the European Parliament voted in favour of the report amending the Commission proposal for a Framework Services Directive, excluding gambling from the scope of the draft Directive. This is the first reading in the European Parliament, and the text will now go to the Council. The two institutions have two readings to comment on the Commission proposal.

On 30 January 2006, during the last General Affairs Council meeting, the EU ministers adopted two decisions amending and extending the Pericles programme until the end of 2006 which aims to promote cooperation between the national, European and international authorities responsible for combating counterfeiting of the euro.

In a resolution adopted on 19 January, the European Parliament sitting in plenary session in Strasbourg adopted by 503 votes to 10 with 38 abstentions an own-initiative report denouncing inadequate implementation of the European Small Business Charter. The report by Dominique Vlasto (EPP-ED, France) urges the European Commission and the Member States to keep their promises in order to improve the situation for small businesses.

Further to an oral question (No 1/6/2006) asked by Karl-Heinz Florenz MEP (Germany, EPP-ED) during the European Parliament Environment, Public Health and Food Safety (ENVI) Committee meeting on 23 January, the European Commission promised to make a legislative Proposal by 2008 to amend the so-called WEEE and RoHS Directive.

The European Parliament Plenary Session vote on the draft Framework Services Directive will take place in Strasbourg on 16 February and not on 14 February as previously announced. The European Commissioner responsible for the Internal Market and Services, Charlie McCreevy, will address all Members of the European Parliament (MEPs) on 14 February in a last effort to convince them to vote in favour of the draft Directive. The current proposal from the lead European Parliament Committee excludes gambling from the scope of the draft Directive.

Fifty years after the adoption of its 1956 enacted Gaming and Lotteries Act, Ireland is expected to pass a new bill. According to the Government's legislative programme, the publication of the Bill is planned for 2006.

The European Parliament IMCO report on the draft Framework Services Directive fully excludes gambling from the scope of the Directive, but has changed the definition of gambling from that laid down in the electronic commerce directive to include ‘casinos' as an ‘activity' included as part of gambling. The draft legislative text will be voted on by MEPs in Penary Session in Strasbourg on 14 February.

After the UK, Austria will be the next EU Member State to hold the Presidency of the European Union, and this as from 1 January 2006, for a period of six months. As Austrian Federal Chancellor, Wolfgang Schüssel will assume the Presidency of the EU for that period. It is expected that the Austrian Presidency will chair some difficult discussions with respect to the draft framework services directive.

The European Commission proposed on 10 November 2005 a single coherent policy framework for EU action in favour of Small and Medium-sized Enterprises (SMEs) in five specific areas: promoting entrepreneurship, strengthening dialogue and consultation with SME stakeholders, cutting red tape, improving SMEs' growth potential and improving SMEs' access to markets. This proposal aims at the integration of "Think Small First Principle" into all policies both at national and EU level to make them truly SME friendly.

The European Central Bank this month announced that they shall not be taking any action against the 10 Thai baht coin which is very similar to the €2 coin. The ECB stated that the ferromagnetic nature of the €2 coin makes it easily distinguishable for coin-operated machines and that the Thai bahts should not worry the industry.

The European Central Bank President Jean-Claude Trichet announced that it will not introduce €1 and €2 banknotes in response to last month's Written Declaration on the introduction of €1 and €2 banknotes by MEP Amalia Sartori. EUROMAT's position on the introduction of the €1 and €2 banknotes got considerable coverage in the press and received replies from MEPs recognising EUROMAT's concerns.

The Internal Market and Consumer Protection (IMCO) MEPs have voted for the exclusion of gambling activities from the scope of the draft Framework Services Directive by an overwhelming majority of 33 to 4 votes with 2 abstentions (39 MEPs were voting). EUROMAT welcomes this outcome and the next step is the vote in plenary session in Strasbourg in January 2006 but it is increasingly likely that the vote will actually take place in February.

On 14 October the German Bundesrat (Higher Chamber) approved the modification of the German gambling law "Spielverordnung". The amended law will be implemented on 1 January 2006 once the EU 98/34 procedure is finished (due in November 2005) and the German Ministry of Economy has approved the new law. The Ministry of Economy will then publish the final version of the law in the official journal.

The European Commission has adopted on 10 October 2005 a Recommendation on collective cross-border management of copyright and related rights for legitimate online music services, which is a non-binding legislative instrument. Despite Commission recognition that commercial users required a regime which would allow for efficient distribution of music on-line and transparent pricing, commercial users are hardly mentioned other than ‘Collective Rights Managers should grant commercial users licences on the basis of objective criteria without any discrimination among users". Offline music right users are ignored and the article on dispute settlement is very weak, only that Member States must provide for ‘effective dispute mechanisms'.

The MEP Amalia Sartori (Italy, EPP-ED) has forwarded a Written Declaration on the introduction of € 1 and 2 banknotes, backed by 373 of her MEP colleagues, to the President of the European Parliament Josep Borrell, who has announced the declaration at the Plenary Session in Strasbourg on 26 October. The declaration calls on the Commission, Council and European Central Bank to "recognise the need for 1 and 2 euro banknotes". EUROMAT strongly opposes the introduction of these low-denomination notes which could put another massive financial burden on the gaming sector and believes the written declaration emanating from the European Parliament to be ill-considered and to have no real justification.

The third money laundering Directive which aims at preventing money launderers and terrorist financiers from taking advantage of the freedom of capital movements and the freedom to supply financial services in the Internal Market was adopted by the European Council.

The European Commission has launched an online public stakeholder consultation until 28 October 2005 on the amendment of the annex of the Restriction of Hazardous Substances (RoHS) Directive which concerns the outlawing of substances from new electrical and electronic equipment.

Internal Market Commissioner Charlie McCreevy is prepared to launch infringement proceedings against Denmark and six other countries with state gambling monopolies.

The vote in Committee on the European Parliament report on the draft Framework Services Directive is expected to take place on 4 October although the political groups have yet to agree compromise amendments.

The Swiss Institute of Comparative Law's study on gambling will not be released as early as previously expected. The Commission has received the report, is examining it, but may request further information before circulating it to stakeholders. A hearing on the study is, however, still expected in early November according to the Commission.

The UK Royal Mint has launched a competition for new designs for the 1p, 2p, 5p, 10p, 20p and 50p sterling coins to be approved by the Chancellor of the Exchequer Gordon Brown and put to public consultation on 14 November 2005. Such move is seen as a signal of a longer-term rejection of the euro. In Denmark, the euro seems to be more and more distant as well with a referendum on the euro unlikely to happen under the current government which ends its term in February 2009. Finally, the Czech Republic has postponed the adoption of the euro to 2010 in order to be able to meet the EU three percent government deficit condition.

A vote by the European Parliament Internal Market and Consumer Protection Committee on Evelyne Gebhardt's report on the draft Framework Services Directive (which currently excludes gambling activities from the scope) will take place on 4 and 5 October 2005.

The Swiss Institute of Comparative Law's study on gambling will not be available on the 5th September 2005 as previously expected. No new date has been decided yet.

Further to smoking bans in Ireland, Italy, Malta, Norway and Sweden, three more countries, Spain, France, and the UK, may also take action in this field. While the French lower house of Parliament will be submitted a bill this autumn with the aim to clear restaurants and bars of smoke, a bill proposed by Prime Minister Tony Blair's government to outlaw smoking in public places, apart from bars that do not serve food and private members clubs, has been put to public consultation until September. In Spain, the draft law banning smoking is being discussed in Parliament and shall come into force on 1 January 2006

Poland might see the formation of a trade association to represent the interest of amusement centres, theme parks and Family Entertainment Centres thanks to the initiative of Rajnet Leisure World.

The Cash Users Group met this month to discuss among other things Euro coins' similarity to medals and tokens. Further discussions included the Euro and the new Member States' capabilities to produce Euro coins in advance of Eurozone entry. Finally, on Euro coin counterfeiting it was highlighted that the Commission collaborates with the European Central Bank, Europol and the National Competent Authorities. During the meeting they reported a quite satisfactory situation in principle for 2004. The euro counterfeiting remains lower than the number of counterfeited coins before the introduction of the euro.

The Commission has launched infringement proceedings against France, ltaly, the United Kingdom, Finland, Greece, Estonia, Malta and Poland for failing to transpose three Directives on Electronic Waste. The Commission has therefore sent final written warnings - the last step before referral to the European Court of Justice - to the eight Member States.

Legal cases which were to be launched against Member States who are preserving national gambling monopolies have been postponed. The Commission became split with the Internal Market Commissioner Charlie McCreevy fully behind the action, while the Commission President José Manuel Barroso resisting legal action being taken. It is now expected that action will now only be taken if a "green light would be given following a debate between Commissioners".

The Draft Framework Services Directive was discussed by both the Internal Market and Consumer Protection and Economic and Monetary Affairs Committees in the European Parliament. The EPP, of which the UK Conservative Party is a member, introduced an "Internal Market clause" to replace the Country of Origin principle, while the UK Presidency assured the Parliament that the Directive is a priority.

European Commission updates guidelines on Euro coins to make them more ‘nationally recognisable', for a period of time to be given to warn member states of a newly designed coin, and guidelines on handling of coins unfit for circulation.

The European Commission has opened up a state-aid investigation due to rising suspicions of whether state aid being given for the sale of the Tote in the United Kingdom, which reduces the market price by 50%, is necessary or proportionate.

The Third Money Laundering Directive which introduces safeguards and includes casinos in its scope was adopted definitively by the Council of Ministers. The Directive builds on existing legislation and incorporates forty recommendations given by the Financial Action Task Force.

The Commission clarifies the impact of the draft Framework Services Directive on gambling activities saying that the Directive shall only apply to gaming operators if they are providing a service across a border from their own member state, but not if they choose to establish a branch in a second member state - in that instance the operator would be bound by local rules.

Commissioner McCreevy addresses the IMCO Committee on the occasion of its debate on the Framework Services Directive amendments highlighting the need for the Directive in Europe, while the Rapporteur Ms Evelyne Gebhardt expressed her will for the country of origin principle to be replaced with the mutual recognition principle.

The German government proposed legislation levying VAT on all games of chance equally. If the law is passed in Parliament it could enter into force as soon as 1 July.

Various changes to come in the appearance and security of Euro-Coins and Bills were announced by European institutions and discussed with the European coinop industry.

Third Money Laundering Directive was adopted by the European Parliament and stands to be voted on by Member States in the Ecofin Council in early June

Eco-Design Directive, which recently passed the vote in the European Parliament, might cover gaming machines in the future

MEP Evelyne Gebhardt presented the second part of her draft report on the draft Framework Services Directive, most importantly clarifying the scope of the Directive.

Competition Commissioner Neelie Kroes is planning to investigate whether the UK government's sale of the betting company Tote complies with EU state-aid rules.

The UK Gambling Bill has been adopted, after a political deal was struck between the Labour government and the Conservative opposition, drastically reducing the number of allowed "super casinos" to merely one. Industry reactions on the development have been varied.

After the European Court of Justice ruled in a German case to lift the VAT from non-casino AWP slots, the German government proposed a law to levy VAT on all gaming operations equally. The legality and economic feasibility of this proposal is being challenged by the industry.

The Committee on Civil Liberties, Justice and Home Affairs voted on the report by MEP Hartmut Nassauer (EPP) on the third Money Laundering Directive.

Evelyne Gebhardt excludes gambling activities from the scope of the draft framework services directive in her draft report (part 1). The debate on the report, which took place on 19 April 2005, reflected the diversity of opinions among MEPs from all political parties.

New two-euro coins have been introduced both in Austria and Belgium to commemorate the Austrian Treaty of State and the Belgo-Luxembourg Economic Union.

EU Health Commissioner Markos Kyprianou launched the Commission's second anti-smoking campaign on March 1, entitled "Help - for a life without tobacco". This initiative's budget has been quadrupled relative to the first campaign and it is planned to run until 2008 featuring a road show, advertisements and spots on TV and cinemas.

On 31 March, the European Parliament Committee on Civil Liberties, Justice and Home Affairs JURI adopted a draft opinion on the initiative from some EU member states with view to adopting a Council Decision on protecting the euro against counterfeiting, by designating Europol as the Central Office for combating euro counterfeiting.

EUROMAT President Eduardo Antoja brought EUROMAT concerns about the draft framework services directive to Brussels this month, with a series of meetings with key MEPs. In a similar move, Europe's national lotteries demanded the exclusion of gambling from the draft services Directive in a press release dated 21 March 2005.

The European Parliament called for amendments to the Commission proposal for 3rd Directive on money laundering while the heads of the European Bar and law societies renewed their appeal for the proposed Directive to be postponed. If a satisfactory compromised is reached, the European Parliament could vote in plenary session in April or May for the first reading.

The European Court of Justice ruled in a German case to lift the VAT from slot-machines outside of publicly authorised casinos.

In a speech on the Lisbon Strategy Commission President José Manuel Barroso reaffirmed the importance of the draft framework services Directive. Despite the controversial country of origin principle, the European Commission will not restate its proposal but will rather seek a debate with the European Parliament. Meanwhile, the European Parliament Socialist group gathered on the occasion of a conference on the draft framework services Directive in Brussels on 16 February. They expressed their concerns about social dumping through the application of the country of origin principle.

Currently under first reading in the European Parliament, the third money laundering Directive was discussed in the Legal Affairs Committee (JURI), led by draftswoman Diana Wallis (ALDE, UK). Major concerns were expressed over the impact of this and the previous two money laundering Directives

The European Commission awarded the study on gambling to the Swiss Institute of Comparative Law on 25 January 2005.

In an exchange of views in the European Parliament Committee on Internal Market and Consumer Protection (IMCO) on the draft Framework Services Directive Rapporteur Evelyne Gebhardt and the Commission disagree over Country of Origin Principle.

The European Commission has referred Greece to the European Court of Justice further to an opinion in April 2004 formally requesting that Greece change a law which bans the installation and operation of electrical, electromechanical and electronic games, and action not being taken by Greece to comply with this

The European Commission has awarded the tender for carrying out a study on gambling in the EU. The successful contractor must sign by 29 December 2004 and will then have 11 months to carry out the study from this date.

European Parliament Hearings on the draft framework services directive took place in November and December and threw light on the emerging debate and conflicting views with regards to what approach should be taken in terms of the scope of application of the proposal and standing of the country of origin principle. During the EPP hearing a nominated expert said that the derogation for gambling is necessary and different Member State law for gambling grants a high level of consumer protection according to specific national contexts.

EUROMAT welcomed the decision of the Governing Council of the European Central bank (ECB) on 18 November not to introduce low denominations euro banknotes. This decision was taken further to consultation with EUROMAT and other parties in which there was a clear majority against 1 and 2 euro notes. The reason given by the ECB was that the Governing Council, in assessing all the arguments put forward in the debate, concluded that the negative aspects of introducing very low denomination banknotes outweigh the positive aspects

EUROMAT will be present at a public Hearing to be held on the draft framework services directive on 11 November in the European Parliament Committee for the Internal Market and Consumer Protection. The draft agenda for the hearing outlines the areas where MEPs have nominated experts to answer questions about how the proposal might affect particular sectors.

The European Commission has referred Greece to the European Court of Justice further to an opinion in April 2004 formally requesting that Greece change a law which bans the installation and operation of electrical, electromechanical and electronic games, and action not being taken by Greece to comply with this

EUROMAT is confident that the ongoing dialogue between the Turkish authorities and consulted parties with regards to the issuance of new Turkish coins and the technical analysis carried on them will ensure that the Turkish coins pose no problem to the gaming sector

European Commission has sent a draft Decision to the Council aiming to establish maximum concentration values for certain hazardous substances in electrical and electronic equipment.

European Commission is currently evaluating the tenders it has received with regards to carrying out a study on the EU gambling/ gaming sector within the parameters of its work on the draft framework service directive

A Hearing will be held on the draft framework services directive jointly by two European Parliament Committees on 11 November. Experts nominated by MEPs will be questioned about the impact the proposal could have on different sectors including gaming.

Announcement of new Commissioners including Charlie McCreevy, the Irish finance minister, as the new Commissioner for the Internal Market and Services.

First exchange of views in the European Parliament Committee on Internal Market and Consumer Protection (IMCO) on the draft Framework Services Directive; Dutch Minister weighs in; Commission launches study on gambling market.

Stanleybet is likely to lodge a formal complaint with the European Commission against Italy following the Italian Supreme Court's final judgement in the Gambelli case.

Continued questioning has led the European Commission to clarify the scope of the draft Services Directive and propose several changes.

After Antigua and Barbuda successfully challenged the U.S. ban on Internet gambling, the two parties now seem to resolving their dispute through negotiations, thereby suspending litigation over Internet gambling.

The Lotteries and Gaming Authority of Malta passed new regulations for remote and mobile gaming in Malta, which will replace the existing gaming licensing system.

A Dutch Court delivered its verbal judgment in the case between UK betting provider Ladbrokes and the sports betting monopoly De Lotto. The court rejected De Lotto's attempt to stop Ladbrokes from offering online gambling services to Dutch residents.

In the dispute between the representatives from the private gaming sector and the Belgian national lottery organisation Loterie nationale, an arbitration court decided to give the monopoly to organise bets, on internet or by sms, to Loterie nationale.

The WTO panel upheld its ruling in the Antigua case that the US ban on Internet, telephone and other remote gambling services was in breach of its WTO commitments

The EFTA Court declared that Norway failed to notify a gaming regulation at the drafting stage, thereby not fulfilling its obligation under the so-called notification Directive (Directive 98/34/EC).

The European Commission has launched an open consultation for views on a VAT one-stop shop system. Under such a system a trader could fulfil VAT obligations for his EU-wide activities solely in the Member State in which he is established

On 23 April, the EFTA Surveillance Authority initiated infringement proceedings against Norway with regard to the introduction of a monopoly on the operation of gaming machines through the state-owned gaming company Norsk Tipping. This is the first stage in a formal infringement procedure against a Member State and Norway has two months to submit a reply.

The European Commission is currently holding a consultation on whether to expand the scope of the notification procedure to services legislation being implemented at national level. Such a procedure is already enshrined in a Directive (98/34 EC) for technical regulations and information society services, which obliges EU Member States to notify to the Commission and to each other all national draft regulations before they are adopted in national law.

The EU Ministers welcomed the European Commission's proposal for a Framework Directive on Services during the Competitiveness Council in March. However, the EU Member States were broadly split into two camps on the proposal: those who stressed the need to turn the draft Directive into EU legislation as soon as possible, and those who backed it but had doubts about its broad scope.

The European Commission is investigating Danish law on certain games, lotteries and bets as Denmark may be breaking EU Internal Market principles of the freedom of establishment and freedom to provide services.

The European Commission presented a proposal for a Council Regulation on medals and tokens similar to euro coins. The purpose of such a regulation is to protect the public against fraud and confusion related to the euro coins, while at the same time establishing a level playing field for the production of such medals and tokens.

The European Commission called upon six Member States to transpose the second money laundering directive into national law. The Directive extends the scope of the first directive on money laundering and makes it compulsory for Member States to combat laundering of the proceeds of a wide range of serious crimes.

The European Central Bank released figures on the circulation of the euro currency counterfeit euro coins. In 2003 the figures were slighter higher than in 2002, but the report also states that the quality of counterfeit coins has globally improved, especially for the 2 euro coin.

The EFTA Surveillance Authority questions Norway for the planned introduction of a gaming and lottery monopoly. Several Norwegian operators have complained about the new legislation to the EFTA Authority and have encouraged it to start infringement proceedings.

The European Commission proposed a Framework Directive on Services which aims to overcome cross-border barriers to and further liberalise the provision of services throughout the EU. Gambling activities would be covered by this directive, with the possibility of an interim derogation.

The Council adopted two Decisions designed to strengthen the fight against counterfeiting for Euro coins. Moreover, Member States have pledged not to modify the national sides of Euro coins before the end of 2008.

The European Commission is in the process of examining the need for and scope of a possible new EU initiative in field of eCommerce and online-gambling.

The European Commission is expected to propose a Framework Directive on Services which would apply to the gambling sector. The draft Directive is to overcome cross-border barriers and seeks to further liberalise the provision of services throughout the EU.

The Council adopted the draft Directive on waste electrical and electronic equipment (WEEE). The European Parliament having given its approval, without amendments, to the proposal in October. The Directive can now become law, to be implemented at member state level by 13 August 2004.

The European Court of Justice indicated that EU Community law refutes the right of one member state to tax gains from gambling organised in another member state, while the same gains from gambling organised on its territory are not subjected to income tax. A Finish lottery player was asked to tax her winnings from a Swedish lottery, although had the person won the Finnish lottery, it would have been tax-free.

The European Commission issued a Communication on changes to the design of national obverse sides of euro circulation coins. This step follows a recommendation on the same subject one month ago and aims at establishing a common framework for changes to the national sides of both normal and commemorative euro circulation coins.

The European Commission has proposed a Framework Directive on unfair commercial practices. The Directive aims at harmonising the different Member States' legislative and administrative provisions concerning unfair commercial practices. It will only cover commercial practices that affect consumers' economic rights.

The European Parliament adopted the report by Karl-Heinz Florenz on the Commission's Proposal for a Waste Electrical and Electronic Equipment (WEEE) - Directive. The Directive amends last year's Directive on the same subject and deals with the financing of electronic waste from non-household sources, i.e. producers and suppliers.

The liberalisation of internet gambling in Europe has been put on hold after the European Court of Justice authorised governments to restrict the flow of cross-border sports betting. In the preliminary ruling on the Gambelli case, the Italian government's prohibition of unregulated cross-border sports betting via the internet was not judged breaching EU Community law per se but restricting European market freedoms of establishment and services. Restrictions cannot be imposed to defend the monopoly of state-run betting companies in order to procure public funds.