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European Commission launches infringement proceeding against Italy

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The European Commission has sent on June 28 a Letter of Formal Notice to the Italian Authorities for failing to notify the Commission about the provisions of the Italian Finance Act 2006, which was adopted into national law in January 2006 without any notification to the Commission or to the other Member States.

Since January 2006, hundreds of foreign bookmakers, including many fully licensed and regulated in other EU Member States, have been blacklisted by the Italian Authorities and their access to the Italian market has been impeded.

According to the European Betting Association, Italy had already received on April 4 another Letter of Formal Notice concerning its sports betting legislation, but did not reply to it.

Italy has now until the end of August 2006 to reply to the Commission’s Letter of Formal Notice on the Italian Finance Act, which is deemed overall contrary to the EC Treaty, notably Article 49 on the freedom of service provision

Didier Dewyn, Secretary General of the European Betting Association, commented: “The Commission once again proves its resolve in ensuring that EU law is respected by all Member States. However, we urge the Commission to come up with a more permanent solution to this chaotic situation, which is the result of various Member States’ inconsistent, discriminatory and occasionally irrational legislation aiming solely at the protection of the public purse. Such a solution can only be in the form of EU-wide sports betting regulation.”