Gambling News by Gambling Headquarters

France was likely to face a legal challenge from the European Commission over its restrictions on gambling operators, Brussels said on Tuesday, warning it could target Paris as early as next month in a broader sweep against national governments. The threat was made following last week's arrest in France of two senior executives of Bwin, an Austrian online sports betting operator. The French authorities claim Bwin has violated French gaming law, which bans private sports betting businesses from operating in the country. Brussels said on Tuesday that it was likely to launch a number of new cases against countries that impose illegal restrictions on gambling operators. Earlier this year, Charlie McCreevy, the EU internal market commissioner, opened infringement procedures against seven member states, including Germany, Italy and Sweden. His spokesman said on Tuesday: "We continue to receive complaints and commissioner McCreevy intends to proceed with these cases and initiate additional cases against other member states, including France."

On the Bwin arrests, he warned that criminal sanctions against individual executives that were based on laws against illegal gambling could in themselves be "problematic" from the Commission's point of view.

Under EU law, governments have the right to place restrictions on gambling and sports betting operators, but they must be "non-discriminatory, proportionate and consistent". Mr McCreevy's spokesman said: "It is not acceptable to limit the freedom to provide betting services on account of protecting consumers and at the same time allow mono-poly holders to advertise betting services."

Bwin resumed trading on the Austrian stock exchange yesterday after its executives were released on bail on Monday night. Its shares fell by a third but in afternoon trading it recovered some of its lost ground to be down about 16 per cent.

Bwin said it expected a decision by the end of the year on whether Manfred Bodner and Norbert Teufelberger, the two Bwin executives, would face cri-minal charges. It has been instructed by the French investigating magistrate to put a notice on its website informing visitors in the next few weeks that online betting could be in breach of French gaming laws.

The company is also under pressure in Germany, its biggest market, where authorities are trying to revoke its gambling licence.