Horseracing monopolies may be justified: EU court
Photo © Tarikh Jumeer - Fotolia
(LUXEMBOURG) - In a case pitting an online gambling site against France's only horse-betting firm, Europe's top court said on Thursday that horse racing monopolies may be justified in order to fight gambling addiction.
A Malta-based company offering online betting, Zeturf, asked French authorities in 2005 to repeal a law granting a monopoly on horse-race betting to PMU.
France's high court, the Conseil d'Etat, then asked the European Court of Justice for guidance before ruling on the case.
"A monopoly on off-course betting on horseracing may be justified if it pursues the objective of combating the dangers linked to games of chance in a consistent and systematic manner," the European court said in a statement.
The Luxembourg-based court recalled that monopolies can exist to ensure a "particularly high level" of protection against the dangers of gambling such as fraud, money laundering and addiction.
The Conseil d'Etat must determine whether French authorities "genuinely sought" such a high level of protection and that creating a monopoly was necessary.
Private online gambling operators have sought for years to break national monopolies in the 27-nation European Union.
Under pressure from the European Commission, the EU's antitrust watchdog, several countries including France have opened the industry to competition.
Judgement of the European Court of Justice in Case C-212/08 - Zeturf