Thursday, September 21, 2006

Bwin Interactive, the firm behind BetandWin, filed a formal complaint in
March to the European Commission, company spokeswoman Karin Klein told
OUT-LAW. The complaint claims that France's gambling monopoly breaches
Article 49 of the EC Treaty which enshrines the freedom to provide cross
border services. "It asks the Commission to force France to comply with EC
law on the freedom to provide services," said Klein. The company's joint
chief executives Manfred Bodner and Norbert Teufelberger were arrested last
week in France in connection with the company's gambling business. Sports
gambling in France is a monopoly for La Francaise de Jeux, which is 72%
owned by the French state. The joint-chief executives were released on
Monday on ?300,000 bail each after a hearing at a Nanterre court. "They are
out and I think the entire case will take 12 months before we have a
decision," said Klein. The executives were visiting France to launch a
sponsorship deal with AS Monaco when they were held for questioning. Bwin
hopes that the French court's eventual verdict will be influenced by a
ruling from Europe on cases already being processed, including that of
Massimiliano Placanica. Placanica was an agent for Stanley International in
Italy, where betting is tightly controlled by the state.
The court of Larino has referred the case to the European Court of Justice
to judge whether or not the Italian legislation in his case is consistent
with Article 49. The case was lodged in August 2004, and Bwin expects a
decision before the French court gives its ruling.

"The ECJ will decide the Placanica before the Nanterre gives its judgment
and we think the Nanterre judges will take the ECJ into account in making
their decision," said Klein.

Bwin is the third company in recent weeks to have officials arrested. Two
British had individuals involved in US arrests. Ex-BetonSport chief
executive David Carruthers remains in the US awaiting trial in a Department
of Justice case while Peter Dicks, of Sportingbet, has been allowed to
return to the UK before returning to New York on 28th September to face
charges being pressed by the state of Louisiana.