Danish Gambling Caught in EC Row

Back in July, Denmark shared its legislative plans with the EU, looking to join the growing number of European countries who have dissolved existing gambling monopolies and embraced online and offline gambling regulation. The process, however, has not run smoothly.

Legislation Lacks Compliance
On October 6th the EU Commission issued a 'detailed opinion' against the Danish proposal. A 'detailed opinion' signals that the EC consider the draft law would, if implemented, create barriers to trade, services or establishment within the EU. The Danish draft law is thought to fall short of EC requirements in several places, including:

• failure to take into account securities and controls already offered by other EU jurisdictions;
• allowance of some continued monopolies;
• a marketing ban;
• restricting Danish licensed games to Danish residents only.

According to Sigrid Ligné, Secretary General of EGBA (European Gaming and Betting Association), "We support the Danish government's intentions but emphasize the need to ensure that any new legal framework is compliant with the EC Treaty."

Decision Time for the Danes
The detailed opinion instigates a standstill period, within which Denmark cannot adopt the existing draft and needs to respond to the areas of concern raised by the EU. If the law is subsequently adopted without rectification then the Commission can launch infringement proceedings.

In January 2008, following on from Germany adopting legislation without taking heed of a previous EU detailed opinion, legal proceedings were indeed launched by the Commission.

All eyes are on Denmark to see if they will amend their draft legislation during this standstill period or drive it through and face the music.

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