European legal update Excellence in Gaming Law 29th November 2006 Evelyn Heffermehl ULYS law firm www/ulys.net

European legal update Content  European Commission’s infringement proceedings  France’s draft bill on delinquency

European legal update European Commission  April 2006: opening of infringement proceedings against seven member states  October 12 th : new proceedings aginst three additional MS (France, Italy and Austria)  Follow numerous complaints  Based on article 49 EC Treaty and ECJ “Gambelli” case-law (consistent gaming policy)

European legal update France’s draft bill on delinquency  Fines against operators of “illegal” online gaming sites to be doubled (from euros fine to euros for sports betting and lotteries operators; from and euros fine to and for horse betting operators );  Fines against “intermediaries” to become much higher ( euros fines + the possibility for courts to multiply this fine by four times the amount invested in the advertising expenses);  ISPs to inform clearly subscribers of the gambling sites which are considered by Home affairs as “inappropriate” : the sanction being up to a year in prison and a €75,000 fine  Banks to stop the flow of funds from individuals or companies which organise betting or gaming activities which are illegal under French law.

European legal update Gaming battle between France and Europe has started  High administrative court seized of the consistency of national monopoly with EU law  DG competition seized of complaint  Climate unsettled at the moment: government is toughening its stance but difficult to know whether it will “walk the talk”

European legal update Where from here?  De facto de regulation process taking place at national level : Germany, Italy, Belgium  Real push comes from market  Commission: “defensive” stance, follows evolution at national level before acting De regulation: two to five years  Community act not on the agenda  No European unlawful internet gambling act !

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