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The European Commission announced Wednesday that it will no longer pursue the court cases it filed against Italy for failure to maintain EU laws calling for free market in goods and services, after Italy made changes to its online gambling laws. In recent years, the Italian government tried to keep online gambling out of the country by banning all other gambling web sites.
Only the Italian Olympic Committee (CONI) and the National Horse Breeders Enhancement Society (UNIRE) were given the exclusive right to provide sports betting, including online gambling. Gambling companies from other European countries were barred from offering their online services to the citizens of Italy.
European Union law does allow Member States to restrict other gaming operators from offering their services and limit the operation of gambling to national monopolies as long as it is in the interest of the public, such as to prevent fraud and organized crime or to reduce gambling addiction.
The restrictions, aside from being necessary, fair and unbiased, must also be “consistent and systematic” in order to be lawful. Following a relentless onslaught of complaints in 2003 from European gambling operators and after it was found that Italy’s measures against the foreign gambling firms were not impartial, the Commission started legal action against Italy for non-compliance of EU rules of free provision of services in the Internal Market.
After thoroughly examining the case, the Commission sent a formal letter of notice to Italy in 2006, the first step in possible infringement proceedings. The Italian government decided to hold talks with the Commission, which proved to be fruitful, for in 2009 Italy informed the Commission it had made changes to its gambling laws.
With Italy’s new gambling law, European gambling firms can now apply for gaming licenses in Italy, and can now offer Italian citizens a more extensive selection of online gambling services and sports betting, which are authorized and regulated by the Italian authorities to ensure consumers of safety and protection from fraud and other criminal activities and to minimize gambling addiction.
The Commission said it welcomes Italy’s move and has decide to close the legal cases against Italy, as the government has shown that it is willing to amend its laws, and provide clear regulations for the licensing of domestic and foreign companies, in compliance to EU rules.