Featured study
This legal study is made for the purpose of clarification of the applicable EU legal framework regarding online gambling and monopoly systems in the European Economic Area (EEA), in the context of an ongoing reflection on the Austrian system based on the Gambling Act (Glücksspielgesetz, “GSpG”).
As a background, the operation of “electronic lotteries” in Austria is subject to the single lottery licence, thereby constituting a de facto monopoly for online gambling.
This study only reflects the view and the interpretation of the Court’s case law of its authors.
EXECUTIVE SUMMARY
- As regards compliance of the gambling monopoly with EU law, it has long been clear from the Court of Justice of the European Union (‘the Court’) that granting exclusive rights to a single organisation (the monopoly system) is indeed recognised as a proportionate measure to achieve the objectives of limiting the exploitation of the human passion for gambling and to avoid the risk of crime and fraud linked to games of chance (I.A).
- The Court has then, along a rich and extensive case-law, developed a preference for the monopoly approach to control online gambling, by stating that exclusive rights granted to a public body subject to direct State supervision is likely to enable “more effectively” the State to tackle the risks connected with the gambling sector (money laundering, addiction to gambling, etc.) (I.B).
- The controlled expansion is also praised by the Court in order to channel consumers to regulated activities, which allow the monopoly holder for more attractive offers, including through online channels (II.A). The Court specifically hold that a monopoly holder has more leeway in its advertising methods when deploying a controlled expansion (II.B).
