Blow to Malta Online Gambling Sector

The European Court of Justice (ECJ) today upheld a Swedish ban on the advertising of gambling websites hosted in other EU member states, including Malta.

The court said such a ban was legal as long as the penalties are the same as for the organisers of illegal gambling within the country.

The case is being considered as ground-breaking because it effectively allows a national government to stop its citizens advertising services which are legal in other EU states but illegal at home, as long as it can prove that this is in the public interest.

Swedish law bans the organisation of gambling for profit. The only groups which are allowed to run betting in the country are those which use the money for "socially beneficial objectives." But in 2003 and 2004, Swedish papers Expressen and Aftonbladet advertised online betting on four commercial websites in Britain and Malta. The Swedish government therefore fined the chief editor and publisher of the papers, Otto Sjoberg and Anders Gerdin, 50,000 crowns (roughly 6,500 dollars) each.

Both men appealed against the fines, and the Swedish appeals court asked the ECJ whether the Swedish law was in line with EU rulings.

In a statement, European Lotteries, a grouping which represents state lotteries and opposes cross-border online gambling, welcomed the ECJ decision describing it as "another serious blow to the commercial online gambling industry."

Malta and the UK currently host the majority of online gaming operators in the EU.

Source:  Times of Malta