European court rulings allow member states to maintain state-run gambling monopolies if focused on societal protection, not revenue, a Warsaw School of Economics report finds.
EU Law Permits State Gambling Monopolies
European jurisprudence grants EU member states the right to maintain state monopolies in the gambling sector, provided the primary goal is societal protection rather than maximizing budgetary revenue. This conclusion stems from an expert analysis presented by Professor Artur Nowak-Far of the Warsaw School of Economics.
The analysis, commissioned by the Adam Smith Center for Totalizator Sportowy, contributes to the ongoing debate regarding the future of gambling regulations in Poland.
Sector Requires Special Regulation
During the presentation of the report, “Regulation of the Gambling Industry in the European Union,” Professor Nowak-Far emphasized that the gambling sector within the EU is considered an area of particular importance. While formally subject to the rules of the internal market – including the freedom to provide services and entrepreneurship – member states retain broad regulatory autonomy.
This autonomy arises from the nature of gambling, which carries social, economic, and criminological risks. Consequently, EU law permits far-reaching restrictions, provided they serve the purpose of public order.
Consistent Court of Justice Rulings
Professor Nowak-Far noted that the case law of the Court of Justice of the European Union (CJEU) has been consistent in this regard for years. The Court does not impose a single model for organizing the market on member states but examines whether the adopted solutions are coherent and proportionate.
He assessed that the state must demonstrate that restrictions – even very far-reaching ones – genuinely serve to limit the negative consequences of gambling. This requires practical implementation, not merely declarations. A state that declares player protection while simultaneously pursuing policies that encourage increased gambling participation risks facing accusations of regulatory inconsistency.
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