NOT EXACTLY THE BEST OF FRIENDS

(494) (21-September-2006)

Bad blood between Bwin and French authorities

Bwin officials have told the legal publication Out-Law that Bwin Interactive , the firm behind BetandWin, filed a formal complaint in March to the European Commission . Company spokeswoman Karin Klein said the complaint was that France's gambling monopoly breaches Article 49 of the European Community 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 revelation was made following the arrests last week of co-CEOs Manfred Bodner and Norbert Teufelberger (see previous InfoPowa reports), who were released on bail but warned that they could face charges under French gambling laws.

A court in Nanterre, France, will decide by the end of the year whether to formally charge the company, Bwin said. The Bwin executives were arrested after announcing a deal to sponsor the Monaco soccer club, which plays in the top French division.

Sports gambling in France is a monopoly for La Francaise de Jeux , which is 72 percent owned by the French state.

"They [the detained executives] are out and I think the entire case will take 12 months before we have a decision," said Klein.

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.