WRITTEN QUESTION E-0047/03

by Freddy Blak (GUE/NGL) to the Commission

(21 January 2003)

Subject: State monopoly on gambling in Denmark

On 9 January 2003, the Danish Folketing made its initial consideration of a draft law which would firmly established the State's monopoly over gambling. The new betting law will make it more difficult than it is at present for foreign bookmakers to break into the Danish betting market.

Dansk Tipstjeneste has a monopoly on betting in Denmark by law; the profits go partly to sports organisations, the scouts and political youth organisations. However, in recent years, foreign bookmakers have taken a large slice of the cake, which is why the Danish government has submitted a new betting law which prohibits foreign bookmakers from advertising in Danish media and Danes resident in Denmark from working on behalf of the bookmakers. Anyone doing so risks imprisonment and a fine.

Will the Commission say whether the Danish monopoly is a barrier to trade? If so, how does the Commission intend to eliminate it?

Answer given by Mr Bolkestein on behalf of the Commission

(25 February 2003)

The Honourable Member makes reference to a draft law which, if adopted, would make it more difficult for foreign bookmakers to offer and advertise their services to consumers on the Danish market. He asks the Commission whether this draft law would be consistent with the principle of free movement of services enshrined in the EC Treaty. Without being able to draw a final and detailed conclusion at this preparatory stage of the draft national law, the Commission would like to underline that, from a general point of view, Member States may impose restrictions on the cross-border provision of services to protect general interest objectives such as the protection of consumers or the maintenance of public order in society. In line with the European Court of Justice's jurisprudence such restrictions are compatible with the EC Treaty if they are non-discriminatory and proportionate to these objectives.

In the case of the proposed modified Danish law, the Commission notes that the public interest invoked in a written notice by the responsible Danish Minister is that of financing public activities. More specifically, the modifications appear to have two justifications. The first is to subsidise the Danish horse racing industry and the second is to ensure that the Danish monopoly operator Tipstjensten does not lose any customers. According to the the European Court of Justice's jurisprudence, neither of these economic considerations can be accepted as a valid public interest objective justifying a cross-border restriction.

The Commission is ready to examine further the draft legislation in question on the basis of more specific information in order to prevent any possible infringement to Community law.

In addition to that, from a more general point of view, the Honourable Member may be interested to know that in the context of its work on an Internal Market Strategy for services, a number of interested parties including Member States' lottery operators have indicated that legal clarity is required at the European level for such gambling services. The Commission will be considering this issue in the context of its work on the Internal Market for services. In so doing, it will take due account of existing jurisprudence of the European Court of Justice which has indicated that, to some extent, Member States' restrictions to cross-border provision of certain forms of gambling services are compatible with the EC Treaty in the absence of a Community framework.