Stanleybet demands compensation claims to Greece and OPAP

The Stanleybet Group served a formal deed of warning and demand to the Minister of Finance, the Minister of Education, Religion, Culture and Sports, the Hellenic Gaming Commission as well as against OPAP S.A. and the Hellenic Republic Asset Development Fund, copying as well the Prime Minister, the Court of Auditors and other bodies and authorities.

At the same time, the Stanleybet Group has demanded compensation from OPAP S.A. of the damages suffered as a result of its exclusion from the Greek market caused by the illegitimate monopoly over gambling in Greece enjoyed by OPAP S.A. over the years.

Stanleybet has contested for years in a number of different venues, national as well as European, the manifold breaches of EU law committed by the Greek Authorities, and has defended and defends its legal and fundamental right for establishment and provision of services in the Greek offline sports betting market, requesting from the relevant authorities to take action with regard to regulating the offline sports betting market under conditions of full transparency and non-discrimination, and in compliance with CJEU jurisprudence.

Stanleybet’s position was upheld in full by the recent ruling by the Court of Justice of the EU (CJEU) of 23 January 2013, Case C-186/11 Stanleybet et al, which clearly highlights the inconsistencies of the Greek sports betting monopoly with EU law.

In particular, the CJEU ruled that the Greek legislation by virtue of which the exclusive right to run, manage, organize and operate games of chance was granted to OPAP S.A. violates Articles 43 EC and 49 EC, (today Art 49 and 56 respectively) because “that legislation does not genuinely meet the concern to reduce opportunities for gambling and to limit activities in that domain in a consistent and systematic manner” and because there is no “strict control by the public authorities of the expansion of the sector of games of chance, solely in so far as is necessary to combat criminality linked to those games”.

Stanleybet’s struggle in Greece has been ongoing since 2004, when the Group sought a license from the Greek government, which was rejected in breach of EU law. If Stanleybet had been allowed to enter the local market, a network of 100 new betting shops that would have risen to 500 by the end of 2008, would have been established, thus creating conditions for growth as well as new job opportunities and for the proper channeling of the sports betting offer in Greece, besides greater choice and better terms for consumers which invariably follow the turning of closed, monopolized market into an open and competitive environment.

Undoubtedly, Stanleybet, following its standard international practices and in compliance with Greek law, would have contributed to the country's economy, on grounds that a free and well-regulated market ensures additional revenues for the Greek State stemming from competition and from taxing the untaxed offshore offer. It is noteworthy, that the estimated gross revenues during the period from 2008 to 2012 would reach at 59 million EUR per year. At the same time, the consumer would be protected, the public interest would be served and transparency conditions would be ensured contributing significantly to the combating of illegal sports betting in Greece.

For such reasons, the Stanleybet Group has demanded from the Greek State and OPAP S.A. compensation of the unjust damages it has suffered, in an amount estimated at this time in more then 240 million EUR. The OPAP S.A. deed of warning has been likewise sent to its Directors and Auditors, as well as the Capital Market Commission.

“As is evident by a constant stream of legal actions the entire gambling industry is taking against the Greek State and against OPAP S.A., the increasing number of complaints at European Commission level, and the most recent CJEU ruling, the Greek Authorities seem resolved to maintain an illegal framework benefiting a company that is now 99% private”, comments John Whittaker, COO of the Stanleybet Group. “Stanleybet has an established track record of successful legal battles and with this action it is legitimately stating its intention to claim its legal rights to be compensated from losses incurred by being illegally barred from entry in the offline sports betting market in Greece for an exceptionally protracted length of time”, John Whittaker concludes.