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."
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