ECJ ruled that Austrian gaming legislation is contrary to EU law

Only a day after the landmark rulings issued against the German lottery and sports betting monopoly, the ECJ out rightly rejects the Austrian gaming provisions as also being in clear breach of EU law.

The Court concluded on a number of questions which will not only lead Austria to modernize its legislation but will also directly impact other Member States: “The obligation on persons holding concessions to operate gaming establishments to have their seat in Austria constitutes a restriction on freedom of establishment” (ECJ press release n°80/10)
“There are in fact various less restrictive measures available to monitor the activities and accounts of such operators. In addition, any undertaking established in a Member State can be supervised and have sanctions imposed on it, regardless of the place of residence of its managers. Moreover, there is nothing to prevent supervision being carried out on the premises of the establishments”

“The absence of a competitive procedure when the concessions were granted to Casinos Austria AG does not comply with freedom of establishment and freedom to provide services”, said the same press release. Talking about tendering procedures, they “must be based on objective, non discriminatory criteria, known in advance, in such a way as to circumscribe the exercise of the authorities discretion so that it is not used arbitrarily” (Point 55 of “Engelmann ruling,” C-64/08)

Commenting on the case, Sigrid Ligné, Secretary General of the European Gaming and Betting Association said: “Today’s ruling against the Austrian gambling laws confirms clearly that Member States cannot require EU licensed online operators to be physically present on their territory. In the Digital age there are obviously other and more efficient means available to monitor the activities of the operators”.

”The European Commission has been given new legal arguments to pursue infringement procedures against several Member States that have similar provisions.  Commissioner Barnier has now a clear mandate to go ahead with the Green paper and to start discussions on EU regulation for the sector”, Ligné added.