The European Court of Justice (ECJ) decided in the case (C-260/04) against Italy saying that it was wrong to renew 329 horse race betting licences without a public tender .
The Italian government decided in 1999 to increase the number of betting centres in Italy from 329 to 1,000, with only the new concessions put out to tender with the existing ones renewed for six years.
But the ECJ said that this was illeagal and ruled that ” by renewing 329 licences for horse-race betting operations without inviting any competing bids, the Italian Republic failed to fulfil its obligations under Articles 43 and 49 EC and, in particular, infringed the general principle of transparency and the obligation to ensure a sufficient degree of advertising. ”
Italian authorities cannot restrict access to European operators simply for the purpose of guaranteeing “continuity, financial stability and a proper return on past investments for licence holdersâ€. Moreover, the Italian argumentation failed to show how the renewal or maintenance of the old concessions without a tendering procedure would in any way help to prevent clandestine betting.
European Gaming and Betting Association welcomed the decision that is in line with previous ECJ rulings reached in the Gambelli and Placanica cases amd considered today’s ECJ ruling marks an important step towards a regulated European gaming and betting market and encourages Italy and other EU Member States to review their legislation.
According to Sigrid Ligné, Secretary General of the EGBA: „The Court’s decision sends a clear signal to Member States currently offering, or planning to offer, licences to European gaming and betting operators. The Court clearly states that the licensing must be undertaken within a set of clear and strict parameters, which are in line with the EC treaty. The Court‘s decision also underlines that these licences cannot be awarded without a transparent, competitive and fair tendering procedure“.
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