Gaming Laws and Advertising Laws in Europe Latest Developments Thibault VERBIEST Partner – ULYS Casino Affiliate Convention Amsterdam, May 3 - 5, 2007

E.U. Legal Framework (I)  Influence of European Law on national gaming laws.  EC Treaty article 43: free circulation of services article 49: freedom of establishment  Decisions of European Court of Justice Gambelli, Placanica etc.  EFTA court decision

E.U. Legal Framework (II)  European Commission infringement procedure (under Art.226 of EC Treaty): 1 st stage in 2006: Denmark, Finland, Germany, Hungary, Italy, the Netherlands and Sweden. Complementary letters of formal notice to Germany and Netherlands. 2 nd stage in 2007: Reasoned opinions sent to Denmark, Finland and Hungary.

Gaming Laws in Belgium  Draft Games of chance Act  Possibility for EU remote gaming operators to obtain “certificate” with Gaming Commission if fit and proper.  All games may be controlled by Gaming Commission.  Gaming Commission grants a limited number of licenses.  Act was set to be adopted via 2006 Finance Act but lobbying by National Lottery + some Belgian casinos.  Act now undergoing normal legislative procedure.  Likely to be adopted after the Belgian elections in June.

Gaming Laws in France (I)  New law (March 2007) measures against private gaming operators.  Fines against “illegal” online gaming operators to be doubled from €30,000 to €60,000 for sports betting and lotteries operators; from €45,000 and €100,000 to €90,000 and €200,000 for horse betting operators.  Fines against “advertisers”: €30,000 + possibility for courts to multiply this fine by four times the amount invested in the advertising expenses.

Gaming Laws in France (II)  ISPs to inform clearly subscribers of the gambling sites which are considered by Home Affairs Ministry as “inappropriate” (“blacklisted”) under sanction of up to a year imprisonment + €75,000 fine.  Banks to stop the flow of funds from individuals or “blacklisted” companies which organise betting or gaming activities.

Gaming Laws in Germany  Decision of the Federal Constitutional Court of 28 March  Current legal situation not compatible with the freedom to choose one’ s profession (Art. 12 German Constitution).  Transitional period until the end of 2007: State operators have to restrict advertising and care for problem gamblers + temporary relief against prohibition orders.  Infringement proceedings Art. 226 EC Treaty.  Projected new Interstate Treaty on Gambling.  After Placanica decision, the projected Interstate Treaty on Gambling will probably be rejected.

Gaming Laws in Italy  Licences already awarded.  Decrees implementing 2007 Finance Act.  Internet Service Providers forced to block access to not authorized foreign gambling web sites +criminal penalties.  Blacklist drawn up by the AAMS mentions over 600 websites.  Infringement procedure.

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

What next?  Infringement procedures may result in new ECJ cases.  Progressive opening of regulated (licensing process) or complete closure.  Result depends on correct appreciation of effective/proportionate protection of public interests.  Best approach to limit and treat problem gambling and best approach to prevent crime.  Only consensus of Member States will bring legal certainty - but the ball is in their court!

Gaming Laws and Advertising Laws in Europe - Latest Developments Time for Questions!

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