June 13, 2011

Betfair files complaint with EC over Greek draft law

Betfair has filed a complaint with the European Commission over the ban on betting exchanges contained within the Greek draft egaming law.

Martin Cruddace, Betfair’s chief legal and regulatory officer, said: “Having played a constructive role in the preparatory phase of the draft Greek gaming law, we were disappointed with the inclusion of elements within it which unfairly discriminate against Betfair and are clearly incompatible with EU law.

“We have therefore asked the Commission to review the matter and engage with the Greek authorities, with the aim of addressing the concerns raised in our complaint."

In addition to challenging the blanket ban on betting exchanges, Betfair is seeking to address several other components within the draft law which it argues are in breach of EU law. These include the obligation to establish a Greek legal entity, locate servers and process gambling transactions exclusively within Greece, and also the requirement for online customers to obtain a special players ID card.

The EC is due to deliver its verdict on the compatibility of the Greek draft with EU law on 5 July. However shortly after notifying the proposal to the European Commission on 5 April, the Greek government withdrew the draft law from its own parliament for review amid Socialist Party concerns that the draft went too far towards “full deregulation of gaming and gambling.”

The Greek government originally presented its bill aimed at raising around €700m this year from the issue of 15-55 new licences to its parliament in March, by which time it had undergone several important changes since appearing in its initial form in January. These included dropping a proposed “black period”, requiring applicant operators to cease activity in the market until licensed, and opting for a 30% gross profit tax (GPT) instead of the 6% turnover levy originally proposed.

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