SBC News Voice of the Sports Betting Industry
Italy’s Council of State has chosen to defer a ruling on a legal dispute related to gambling advertising to the European Court of Justice (ECJ).
The deferment by Italy’s supreme administrative court follows its own determination, which “has raised doubts” on how European laws, standards and practices can be interpreted by the legislative framework of Italy’s Dignity Decree of 2018.
As such the Council of State has chosen for the legal dispute to be settled by the judgement of the ECJ. The discrepancies of the Dignity Decree of 2018, which has imposed a federal ban on betting/gambling advertising and sponsorships in Italy since 2019,, have come under scrutiny once more.
The dispute concerns LeoVegas AB challenge of a €50,000 fine imposed by the AGCOM, Italy’s Communications and Media Authority in 2019 for violating the Dignity Decree.
LeoVegas AB had broadcast adverts for its Italian subsidiary Winga.it on the satellite TV channel Sky 237. The advertisements promoted games and slot machines, which AGCOM considered a violation of the Dignity Decree.
The fine was contested by LeoVegas, who stated that adverts on Sky formed part of its business activities promoting its Italian business, agreed on prior to the government implementing the Dignity Decree conditions in 2019.
The firm argued that these activities fall under the category of “information society services,” which they believe should be exempt from the application of EU law.
The operator first lodged an appeal with the Regional Administrative Court (TAR) against AGCOM’s decision, but the appeal was dismissed. It was then that LeoVegas filed an appeal to the Council of State on the grounds that the Italian gambling advertising ban is in contravention of EU laws, particularly regarding cross-border online services and the freedom to provide services in the EU.
The Council of State had sufficient grounds to refer the matter to the ECJ to determine whether the Italian government’s blanket ban on gambling advertising complies with fundamental EU laws.
The deferment is required as the ECJ will make a decision on whether Italy’s regulations, which were implemented to mitigate the effects of gambling, conform with EU laws on the freedom of services and non-discrimination among member states.
Dignity Decree faces uncertain future
In its analysis, the ECJ will consider whether the ban is discriminatory towards companies located in other EU states that are legally permitted to offer online gambling services in another member state.
The dispute takes place as Italy’s Senate has begun discussions with media and sports stakeholders to revise or terminate the federal application of the Dignity Decree.
Meetings have begun between the Ministry of Economy and Finance and the Minister of Sport, alongside Serie A chairman Ezio Maria Simonelli, to discuss amendments. Since the decree was enforced, there have been ongoing discussions about the effectiveness and impact of the decree on the gambling and advertising industries.
The forthcoming judgment of the ECJ may have legal implications not only for Italy but also for other EU countries planning to impose similar advertising bans. Notable legal issues to be addressed include whether Italy’s advertising ban violates the freedom to provide services and the free movement of information within the EU.
Moreover, the court will need to establish whether the ban is reasonable in relation to the goal of health protection and whether it amounts to discrimination against companies that are lawfully offering services in other EU member states.
LeoVegas’ legal approach hinges on proving that its advertisements constitute information society services under EU regulations. A favourable ECJ decision for LeoVegas would create substantial challenges for Italy’s current gambling advertisement regulations.
Conversely, a decision supporting the ban would bolster the Italian government’s ability to enforce strict national measures on public health grounds.
Stakeholders from the gambling industry, along with other business sectors and legal professionals, are closely monitoring this decision, as it will shape the ECJ’s approach to balancing public health protection with fundamental EU freedoms.
The EU’s future regulatory approaches and industry practices will be influenced by the court’s interpretation of EU law as Italy contemplates changes to the Dignity Decree.
