92001E1571

WRITTEN QUESTION E-1571/01

by Luciano Caveri (ELDR) to the Commission

(1 June 2001)

Subject: European legal framework for casinos

In the European Union, gambling houses (casinos) are mostly regulated by the domestic law of Member States, chiefly for reasons of law and order. There are various kinds of gambling houses offering different types of games, with the traditional split between French and American games, in addition to slot machines, which clearly fall into a category of their own.

Will the Commission say what could be considered to be the current European legal framework for the various kinds of gambling houses, whether any new regulations are envisaged and if so, in which areas?

Answer given by Mr Bolkestein on behalf of the Commission

(13 July 2001)

In response to the Honourable Member's question on casinos, it is true that these are regulated by national laws and that there is no Community secondary legislation in this field at the current time.

Gambling services are, nevertheless, covered by the EC Treaty. The Court of Justice in its rulings on restrictions to such services has confirmed that they are covered by Article 49 (ex Article 59) of the EC Treaty relating to the cross-border movement of services. In a recent case(1), it ruled on whether a national legislation granting a single public body exclusive rights to operate slot machines was compatible with this provision of the EC Treaty. The Court recognised that such a measure restricted the cross-border provision of gambling services. It recognised that the public interest objectives on which the measure was based were the protection of consumers and maintenance of order in society. It added that the restriction was also based on ensuring that profits from such services could be used for public interest objectives. In this instance it ruled that the resulting cross-border restriction was proportionate in that the measure achieved its intended aims and did not go beyond that which was necessary to achieve them.

The Commission has not been called to harmonise the different national laws that regulate gambling activities. However, following the adoption of the e-commerce directive(2) which excluded gambling services from its scope and in the context of its current consultation of interested parties on the basis of its recently adopted Communication on an Internal Market Strategy for services(3), it is being asked to reconsider the need for harmonisation in this field. This seems to stem from the increasing cross-border competition that is arising as a consequence of the development of on-line lotteries and casinos.

The Commission is currently awaiting further reactions from interested parties including national authorities in this area. Cross-border restrictions to such services as well as to all other services will be addressed in a Report to be prepared by the Commission at the end of Phase 1 of its Internal Market Strategy for Services. This report will be made available to the Parliament.

Meanwhile, the Honourable Member is invited to submit his views on the need and/or content for such European harmonisation to the Internal Market and Enterprise Directorates General of the Commission who have joint responsibility for the follow-up work on the Communication on an Internal Market strategy for services.

(1) Judgement of the Court of 21 September 1999. Markku Juhani Läärä, Cotswold Microsystems Ltd and Oy Transatlantic Software Ltd v. Kihlakunnansyyttäjä (Jyväskylä) and Suomen valtio (Finnish State). Reference for a preliminary ruling: Vaasan hovioikeus Finland. Freedom to provide services Exclusive operating rights Slot machines. Case C-124/97.

(2) Directive 2000/31/EC of the Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (Directive on electronic commerce) (OJ L 178, 17.7.2000).

(3) COM(2000) 888 of 29.12.2000.