EU EXCLUDES GAMBLING FROM SERVICES DIRECTIVE

For immediate release

Vienna/Brussels,16.02.2006 --- The European Parliament today voted by a large majority to adopt the EU's revised Services Directive designed to open up cross-border competition in a host of services across Member States. The revised legislation categorically excludes gambling activities, including lotteries, casinos and betting transactions, from the scope of the Directive.

In its explanatory statement, the European Parliament noted the exclusion of games of chance was the result of the "specific nature" of gambling services with regard, for instance, to issues of public order and consumer protection. In particular, they noted that such an exclusion was fully consistent with prior decisions of the European Court of Justice. Moreover, the establishing of "fair, cross-border competition" in gambling services would be "totally impossible".

In its decision, the European Parliament ruled in accordance with the proposal accepted by a large majority on 22 November 2005 by the Committee on the Internal Market and Consumer Protection.

The European Parliament's decision means the regulation and monitoring of gaming and betting activities in line with prevailing case law and decisions of the European Court of Justice remain the sole responsibility of Member States. In accordance with the EU's principle of subsidiarity, this sector shall also remain under the jurisdiction of national laws. Interpretations range here from a total ban on all gambling activities to prohibition systems with exemption and concession regulations stipulating which types of games of chance are permitted in an individual Member State given its particular socioeconomic situation.

Thus, cross-border gambling which in European Parliament and European Court of Justice terms also includes betting activities finds itself faced with yet another legislative barrier, while existing restrictions in the majority of EU Member States in this highly sensitive area are once again upheld. Cross-border gambling is only admissible if and when it is permitted and licensed by the target country in question. The same situation applies to betting. Furthermore, the frequently cited ruling of the European Court of Justice in the Gambelli case also allows no other interpretation.

Moreover, as confirmed by the European Parliament, the assessment of the commensurability of restrictions in the gaming and betting sectors also lies solely in the jurisdiction of the national courts.

For further information please contact:

Hermann Pamminger
Head of Corporate Relations and Customer Care
Casinos Austria International
Dr. Karl Lueger Ring 14
A-1015 Vienna
Tel. +43 1 53440 527
E-mail: hermann.pamminger@casinos.at