For some time the European Commission has tried to get gambling into the EU Services Directive, but the attempt was recently foiled by the members of the European Parliament. State lotteries provide big bucks to national coffers and any attempts to level the playing field for the gambling industry have met with strong resistance from many governments within the European Union, including placing restrictions on advertising.

Gambling, some say, cannot be considered as merely a service industry because of its possible social consequences. Others would point out the hypocrisy of widely promoting national lotteries if gambling can be considered a social curse. Six European Union countries are likely to face legal challenges to their stance on gambling before long. Finland, Germany, Holland, Hungary, Italy and Sweden are in the line of fire from the EU internal market commissioner.

The European Court of Justice has ruled that every country has the right to ban gambling out of social concern, but not if they have a national lottery. A similar ruling against double standards was made by the WTO in the case brought by Antigua & Barbados against the United States over online advertising. The money laundering and underage gambling issues are, as usual, used to justify national restrictive practices and there is no clear indication that the Commision’s drive to remove protectionist bans on gambling will ultimately prove successful. (E-03.14.06)

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