An uncertain legal framework

The EU has emerged as a new actor in the field of games of chance, especially since the completion of the Internal Market. Lotteries are currently subject to national legislation; no European legislation exists for games of chance in general. The European lottery market consists of monopolised national markets in each Member State, dominated mainly by state lotteries and sports betting. Although the European Parliament excluded games of chance from the scope of the Services Directive in February 2006, it is not certain that national monopolies can endure.

Legal proceedings at the European Court of Justice (ECJ) and national courts following complaints from commercial bookmakers that are refused entry to foreign markets, have increased the pressure on state monopolies. It is very likely that national markets will be forced to open their borders and allow foreign operators.

In various decisions (e.g. Gambelli 2003, Placanica 2007, Santa Casa 2009), the ECJ has ruled that Member States may impose restrictions on the freedom to provide services only if such restrictions can be justified by imperative requirements in the general interest. These include consumer protection, fraud prevention and preservation of public order. We regret the fact that fundraising for good causes is considered only an ancillary effect. For the members of ACLEU fundraising is the main purpose.

Former Internal Market Commissioner Charlie McCreevy initiated infringement procedures against some 10 Member States in 2006 regarding their sports betting regulations. These infringements could lead to the opening up of borders in the EU for sports betting and subsequently for other games of chance, i.e. lotteries and charity lotteries. McCreevy did not proceeded with the infringements and his successor from March 2010 on is Michel Barnier. Barnier promises to publish a Green Paper on gambling at the end of 2010 together with a public consultation on all facets of gambling, possibly as an alternative to the infringements. ACLEU hopes charity lotteries and their positive contribution to civil society will be recognized in this green paper.