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Gambling Restrictions upon Arts. 43 and 49 EC Treaty in Denmark

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Justification

  • National measure
  • Compatibility with EC law, in particular with the principle of proportionality

Public order, money laundering crime

National measure

  • The lottery prohibition Act
  • Article 2 states a general prohibition against any lotteries organised in Denmark or abroad. An exception is made if an authorization has been granted.
  • Act on Certain Games, Lotteries and Betting. The same barriers and justifications as for lotteries apply
  • Public notice on lotteries states that (art. 1 and 2) organisations domiciled in Denmark can receive a licence to a lottery under two conditions.
    • the lottery is organised in the benefit for charity;
    • it is not organised in the benefit for political purpose.

Compatibility with EC law, in particular with the principle of proportionality

  • The Danish High Court has taken position on whether the prohibition against advertising and selling lotteries is based on justified social matters that would mean that the restrictions don’t go against the EC-regulations (Østre Landsret 14th of September 2000 Gerhard & Jörg Schindler v. the Danish Ministry of Justice and Ministry of Taxation).
  • In this case the Süddeutsche Klassenlotterie wanted to sell and advertise lots to lotteries in Denmark. The Ministry of Justice refused to grant a license with reference to the law on prohibition of lotteries. Both the Ministry of Justice, the Ministry of Taxation and the Süddeutsche Klassenlotterie made references to the decisions in Schindler, Läärä and Zenatti.
  • The High Court found that the plaintiff had not presented evidence that would allow the court to make a judgment on the question, whether the stated public reasons (protection of players, prevention of crime, public order and the nonstimulation of demand) were in fact real motives behind the legislation. Following the case-law of the ECJ, which allows Member States to exercise considerable discretionary powers if the restrictions can be said to be justified, the court ruled in favor of the Danish Government. The ruling was not appealed.
  • Another case is still underway before the Danish High Court. The company Ladbrokes Worldwide Betting filed a complaint against the Danish Government (The Ministry of Taxation) on the 1st of July 2004 after having been denied a license to provide betting and other fixed odds gambling services. In this area there is a state-controlled monopoly and only Dansk Tipstjeneste A/S has a license to operate. Ladbrokes has argued that the real reason for the monopoly is a fiscal one and that therefore the legislation is not in conformity with the EC Treaty. The case is still pending before the Court. Danish authorities did not take a stand on that question to our knowledge

Consumer protection

National measure

  • The lottery prohibition Act
  • Article 2 states a general prohibition against any lotteries organised in Denmark or abroad. An exception is made if an authorization has been granted.
  • Act on Certain Games, Lotteries and Betting.
  • The same barriers and justifications as for lotteries apply Article 6 of the Act on Gaming Machines outside Casinos: placement and running of gambling machines can take place with a permit from the Gaming Authority.
  • Public notice on lotteries states that (art. 1 and 2) organisations domiciled in Denmark can receive a licence to a lottery under two conditions.
    • the lottery is organised in the benefit for charity;
    • it is not organised in the benefit for political purpose.

Compatibility with EC law, in particular with the principle of proportionality

  • See Danish High Court judgment (Østre Landsret 14th of September 2000 Gerhard & Jörg Schindler v. the Danish Ministry of Justice and Ministry of Taxation) quoted above.

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Gambling Restrictions upon Arts. 43 and 49 EC Treaty in Denmark
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