The report that Britain, Italy and the Netherlands are preparing a joint initiative to denounce protectionism in the European Union, and get it on the agenda at this week’s EU economic summit, may well raise a few eyebrows amongst online gambling operators. Two of the countries, Italy and the Netherlands, are stringently maintaining a protectionist stance when it comes to state-run gambling monopolies.

In February last year the Dutch Supreme Court upheld a ban against foreign companies offering Internet gambling to Dutch citizens. Ladbrokes had contested a lower court decision, claiming it was in violation of the free movement of services within the EU, and went against its fundamental right to offer cross-border services. The original case against Ladbrokes was brought by De Lotto, a company owned by the Dutch government.

In February this year the Italian government enacted a law to prohibit Internet service providers from allowing access to over 600 foreign online gambling sites. The Italian Finance Act 2006 will be contested in the courts as violating the free trade agreement between EU nations, as there could be no legitimate reason why licensed online operators should not be allowed to offer their services to Italian citizens.

The EU laws of free trade prohibit governments from enacting laws that infringe on foreign competition, except when based on moral principles. It is argued that if gambling, land-based or online, is legal in a given country then its government cannot claim to ban foreign operators on moral grounds. France has put its casinos on a list of eleven strategic sectors where it would block foreign takeovers.

What has been described as ‘economic nationalism’ is increasingly becoming a problem in the supposedly free trade zone of the European Union. Whether online casinos, banking, or energy markets, member countries are often thwarting the principles of free trade and putting barriers in the way of outside companies encroaching on their national markets. Denouncing protectionism sounds good on paper but individual governments still want to toss their double sided coin for a win-win result – free trade, but not when it affects self-interest. (E-03.22.06)

© Copyright 2006 CasinoCompendium



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