EU court rules against Italian prosecution of bookies

(LUXEMBOURG) - The European Court of Justice ruled on Tuesday that Italian authorities wrongly sought to prosecute three bookmakers working in association with British betting giant Stanley.

The ruling was eagerly awaited within the gaming sector where many state monopolies in Europe are facing growing pressure from the European Commission which wants to weaken their grip on the industry.

At the request of an Italian court, the European Union's highest court weighed into the case to determine whether Italian gaming legislation was in line with EU rules on the freedom to run a business and provide services.

The case involves three Italians who were charged with collecting bets without the required authorisation. In Italy, only the state or licencees are allowed to take bets.

The three took bets which they then passed on to Stanley International Betting, which is licenced by the City of Liverpool and is part of British gaming group Stanley Leisure.

However, the Luxembourg-based court ruled that the three could not get permission because they were excluded from getting licences, which can only be awarded to operators who are not listed on the stock market.

Stanley Leisure is a listed company.

The court found that "a member state may not apply a criminal penalty for failure to complete an administrative formality where such completion has been refused or rendered impossible by the member state."

Judgment of the Court of Justice in Joined Cases C-338/04, C-359/04, C-360/04 Placanica