The European Union has announced it intends to start legal action against six member states later this month in an effort to break down their national gambling monopolies.
The countries that face a legal battle are Germany, Sweden, Italy, The Netherlands, Finland and Hungary. All six countries protect their national gambling monopolies by restricting cross-border gambling services as well as advertising for those services.
The European Union interprets these restrictions as unfair competition and in violation with the principle of free trade. Government officials say the restrictions are necessary to control underage gambling and money laundering.
Charlie McCreevy, the European Union's internal market commissioner, said "We should proceed against all these countries. Let's get this to court [...] If we are ruled against, then so be it, but let's get on with it."
In February 2006 gambling has been excluded from the European Services Directive (or Bolkenstein Directive) which aims to liberalize the European services market, in a way similar to the free market for products already present.
In a press release issued at the time by the European Betting Association (EBA) Karin Riis-Jørgensen, head of the Danish Liberal delegation in the European Parliament, commented: "this exclusion will obviously increase the already alarming number of court cases and complaints addressed to the European Commission. The Commission must now launch infringement procedures in order to clarify the legal situation in this sector. Action should be taken urgently."
Apparently the European Union has listened to the arguments brought forwards by the EBA, and others, and is now preparing court cases against six of it's member states in order to break down their gambling monopolies. If the European Union is successful in court the member states involved will either have to give up their gambling monopolies or pay a large fine.