EU court backs cross-border gaming

Gaming companies have hailed as a major victory a European Court of Justice ruling that barred Italy from using criminal law to keep out foreign bookmakers.

The case was brought after attempts by the Italian authorities to shut down a network of agents who use Stanleybet's internet site to accept bets from their countrymen.

It is the latest in a series of battles by gaming companies seeking access to European markets that have traditionally been dominated by state-controlled monopolies. Ladbrokes is also fighting on a number of fronts.

Yesterday the court prohibited the use of criminal law in cases where foreign betting companies were refused the required licence by a country. It was brought after Massimiliano Pacanica and two others who operated betting shops in Italy using Stanley were hit with criminal charges because Stanley - licensed in Britain - did not have an Italian gaming licence.

"The Italian criminal penalties for the collecting of bets by intermediaries acting on behalf of foreign companies are contrary to EU rules," the 11-strong panel of judges said.

The case is the second brought by Stanley Leisure. In 2003, it won the "Gambelli" ruling after some 137 agents were shut down by the Italian authorities. It is now hoping its 200-plus agents will be able to carry on trading without interference from the authorities.

Adrian Morris, Stanley's deputy managing director, said: "This is positive and we regard it as a very important decision. Consumers in Europe deserve, and are legally entitled under Article 49 of the treaty, a choice in where they place bets."

Ladbrokes' chief executive Chris Bell said: "This judgment is another step along the road to fairer competition in Europe."

The poker company PartyGaming said: "This is a step in the right direction towards having a level playing field for betting and gaming operators in Europe."