Bwin Upset by Decision
September 15, 2009
The online gambling group Bwin is upset by a recent ruling in Portugal that would make monopolies alright if they have been established for the right reason. The online gambling group says that they have been getting penalized for trying to support sports teams in the country and wanted it stopped. Instead, they say that the courts gave the country permission to do whatever they wanted.
The European Court ruled that the Portuguese state run charities gambling monopoly is legal because it aims to combat criminal activity. However, by allowing this ruling, the court has just made it legal for many countries to create a monopoly thus shutting out competitors. This ruling will tell other European Union member states that they can restrict online gambling services within their countries as well.
This all stems from a sponsorship deal that the Portuguese football league had signed with Bwin. The online gambling company had paid for the right to place their website logo on the players’ uniforms, around the stadiums, and on the team’s Internet site. However, the Direccao do Departamento de Jogos da Santa Casa de Misericórdia de Lisboa fined the online gambling company, and the team for infringing on their monopoly.
Many online gambling operators are upset by the ruling, as are the sports teams, because they feel that it gives them liberties that they should not have. The sports teams say that it is going to make it much more difficult for them to get sponsors, as many online gambling sites aren't going to want to deal with the hassle.
