European Commission
Directorate-General Internal Market and Services
Mr. Commissioner McCreevy
B - 1049
Bruxelles/Brussels
Belgium


Re: Denmark: Longest EU gambling infringement case


Dear Commissioner Charlie McCreevy,

Four years ago, in my capacity as Danish MEP I alerted former Commissioner Frits Bolkenstein about Denmark’s monopoly on gambling and urged the Commission to initiate an infringement procedure against Denmark. I am astonished to see that since then the case against Denmark simply seems to have ground to a halt.

As satisfied as I was about the Commissions initiative to launch the infringement, I am just as disappointed to find that the trial against Denmark has been stranded – it is actually the longest case of all European countries. Four years since Denmark has been disregarding the European Commission’s requests, meaning that the Danish gambling monopoly (Danske Spil) is continuing to infringe Article 43 (freedom of establishment) and Article 49 (free movement of services) of the EC Treaty. This is done by:

• Keeping international operators with a European license out of the Danish market.
• The fact that the Danish legislation seems to be motivated by the objective of securing income for the state, which is not a legal justification to restrict Treaty freedoms.
• The subject matter, that the behavior of the Danish monopoly in relation to marketing and launch of new games indicates that the authorities are encouraging consumers to participate in games which, according to ECJ case law, means that Denmark cannot quote prevention of compulsive gambling and consumer protection as reasons for the restrictions.

In addition to this, I want to bring to your attention the alarming fact that things have actually worsened in
Denmark, while the Commission simply appears to be stalling the case.

The Danish gambling situation in short:

• On March 30, 2004, the European Commission sent an official request for information on the Danish Pool and Lottery Act restricting the supply of sport betting services to Denmark.
• On June 30, 2004, the Danish government sent its reply, in which it argues that the Danish Pool and Lottery legislation fully complies with EU law. Furthermore, it asserts that the marketing behavior of Danske Spil cannot be regarded as encouraging consumers to participate in games to such an extent that Denmark, according to ECJ case law, is ignoring its obligations from relying upon the compelling public considerations behind the legislation as reason for the restrictions.
• On April 10, 2006, the European Commission sent its second official request for information on national legislation restricting the supply of sport betting services to the Danish government.
• On June 29, 2006, the Danish government sent its reply, in which it upheld its original answers.
• On March 21, 2007, the European Commission issued a Reasoned Opinion against Denmark, thereby requesting the Danish Government to reconsider its gambling monopoly and to make sure that the Danish Pool and Lottery legislation becomes compatible with the existing EU law.
• Unfortunately, the Reasoned Opinion did not seem to have had the impact, I could have hoped for, since the Danish government in its reply dated from June 6, 2007, does not find reasons for altering its conclusions.

As if these exceptionally long proceedings were not in themselves an obvious subject for criticism, I presume that you are aware of the fact that many of the foreign providers of sports gaming have been discriminated against and ridiculed in Denmark during the past six months.

To illustrate this, you probably recall that the gambling provider Unibet, in July 2007 was forced by the Danish Gambling Authority to withdraw as sponsor from the Danish national cycling Tour "Post Danmark Rundt". In July, a number of other European online operators also received a letter from Danske Spil asking them in a threatening tone and manner to stop providing services on the Danish market. This action is of course unheard of and completely unacceptable, since the online operators according to European law are allowed to offer their services in Denmark. These are of course only but a few examples of many, illustrating how things have worsened in Denmark – simply due to the lack of the necessary further actions to be taken by the Commission.

Following this, most recently in the beginning of October 2007, Danske Spil has launched a massive national image campaign with the purpose of

• restoring Danske Spil’s image.
• reminding the Danish population of Danske Spil’s distribution of charities.
• mocking and discrediting the online providers by indicating that they use irresponsible and mafia-like methods for their own benefit (see advertisements enclosed).

However, Danske Spil’s campaign appears most paradoxical, when considering that the Danish Government has earlier argued that the gambling monopoly is a source for preventing compulsive gambling in Denmark. But the prevention of ludomania and compulsive gambling simply does not seem the least bit reliable, since Danske Spil constantly launches new games and massive marketing campaigns. For quite some years, Danske Spil has, as you are probably aware of, been the biggest advertiser in Denmark.

Therefore, Mr. Commissioner, it must be time to take further action on this issue. The time has simply come for the Commission to have Denmark and the Danish gambling monopoly tried before the European Court of Justice (ECJ).

And might I add, before I close, that on May 31, 2007 a survey done by ad pepper media and published in the Danish daily Ekstra Bladet, showed that 74% of the 15 000 interviewees replied that they would prefer that the Danish gambling monopoly came to an end.


Yours, sincerely


________________________
Freddy Blak
Former MEP (1989-2004)