UPDATE 1-EU court rules against Greece's OPAP gambling monopoly

Thu Jan 24, 2013 5:48am EST

Jan 24 (Reuters) - Europe's highest court ruled that OPAP's gambling monopoly in Greece was illegal and that the Greek authorities would have to reform the sector to protect consumers or open it up to competition.

Judges in the European Court of Justice ruled against the monopoly on Thursday in a challenge by rivals William Hill , SportingBet and Stanleybet.

EU rules prohibit national laws from granting exclusive gambling rights to a single company, unless the authorities are genuinely reducing access to gambling and controlling expansion of the sector to combat criminality, the court said in a statement.

Judges at the Luxembourg-based court had in previous cases found problems with gambling monopolies in Italy, Germany and Austria.

They said Greece must either liberalise the market, opening it up to competition and treating local and foreign operators equally, or reform OPAP's monopoly.

Liberalising the market is not compulsory under EU law.

If the Greek authorities determined that opening gambling up to competition would not allow for sufficient consumer protection, Greece could undertake "reforms of the monopoly and make it subject to effective and strict controls by the public authorities", the court said.

Shares in OPAP fell 14 percent on the court ruling. The Greek state is selling 33 percent of OPAP, almost its entire stake, as part of a privatisation drive agreed with its international lenders in return for its EU/IMF bailout.

"The court ruling reduces the future value of OPAP as it opens up the market," said Theodore Krintas, head of wealth management at Attica Bank.

"It highlights the need to act fast and not let things drag on once privatisation decisions are taken at a government level. The ruling is a good example that delays may allow future developments to affect the valuation of the asset."