Bwin Interactive, the firm behind BetandWin, filed a formal complaint in March to the European Commission, company spokeswoman Karin Klein told OUT-LAW. The complaint claims that France's gambling monopoly breaches Article 49 of the EC Treaty which enshrines the freedom to provide cross border services.

"It asks the Commission to force France to comply with EC law on the freedom to provide services," said Klein.

Trading resumed on Tuesday following the arrests last week of co-CEOs Manfred Bodner and Norbert Teufelberger, who were released on bail but warned that they could face charges under French gambling laws.

The share price fell 17 percent.

A court in Nanterre, France, will decide by the end of the year whether to formally charge the company, Bwin said. The stock, which had been suspended since Friday, fell Euro 4.37 to Euro 21.28.

The French budget minister, Jean-François Copé, has declared he wanted to introduce "more severe sanctions" for gambling companies that advertise illegally in the country. The Bwin executives were arrested after announcing a deal to sponsor the Monaco soccer club, which plays in the top French division.

Sports gambling in France is a monopoly for La Francaise de Jeux, which is 72% owned by the French state.

"They are out and I think the entire case will take 12 months before we have a decision," said Klein.

The executives were visiting France to launch a sponsorship deal with AS Monaco when they were held for questioning.

Bwin hopes that the French court's eventual verdict will be influenced by a ruling from Europe on cases already being processed, including that of Massimiliano Placanica. Placanica was an agent for Stanley International in Italy, where betting is tightly controlled by the state.

The court of Larino has referred the case to the European Court of Justice to judge whether or not the Italian legislation in his case is consistent with Article 49. The case was lodged in August 2004, and Bwin expects a decision before the French court gives its ruling.

Bwin is the third company in recent weeks to have officials arrested. Two British had individuals involved in US arrests. Ex-BetonSport chief executive David Carruthers remains in the US awaiting trial in a Department of Justice case while Peter Dicks, of Sportingbet, has been allowed to return to the UK before returning to New York on 28th September to face charges being pressed by the state of Louisiana.

Since the US arrests, online gambling execs have been warned by their attorneys not to travel to or from the States.  However, two of the more prominent online gambling executives, Calvin Ayre of Bodog.com and Mark Blandford of Sportingbet, were both traveling within the United States at the time of Carruthers arrests and both were able to leave the country without incident. 

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Gambling911.com News Wire

Originally published September 20, 2006 7:53 pm ET