Analysis of Judgment No. 18625 of 08/07/2024: Freedom of Establishment and Gambling

Judgment No. 18625 of July 8, 2024, by the Court of Cassation is set within a complex legal context regarding the restrictions imposed by national legislations on betting activities. This decision highlights the tensions between national regulations and European directives, particularly concerning freedom of establishment and service provision. In this article, we will analyze the contents of the judgment and its implications.

The Context of the Judgment

The case involved an English betting company, M. (J.), against the Italian State, after the latter denied access to the selective procedures for carrying out betting activities. The Court of Appeal in Rome, upheld by the Cassation, ruled that such exclusion did not violate community law, justifying it in light of general interest objectives, such as the fight against crime and consumer protection.

Relevant Legal Principles

Exceptions - Basis - Case. The restrictions imposed by the internal legislation of a Member State on the exercise of the collection, acceptance, registration, and transmission of bets by companies based in another Member State constitute a violation of the freedoms of establishment and service provision under Articles 49 and 56 T.F.U.E., unless justified by imperative reasons of general interest, such as consumer protection, prevention of fraud and excessive gambling expenses, as well as, more generally, disturbances of social order, with Member States free to set the objectives of their gambling policy and to detail the level of protection sought, limited only by the respect of proportionality conditions. (In this case, the Supreme Court confirmed the merits judgment that had rejected the compensation claim made by an English betting company operating in Italy through a network of agencies against the Italian State, on the assumption that the exclusion from access to the selective procedures for cross-border betting services - which the applicable Italian legislation ratione temporis provided for companies with widely held shares - did not constitute a violation of community law, translating into a limitation of the free provision of services justified by specific objectives, such as the fight against crime and control of gambling activities).

Implications for the Betting Sector

This judgment has significant implications for betting companies wishing to operate in Italy. They must consider that restrictions related to market access may be justified by the need to protect consumers and prevent fraud. Below are some key points:

  • Compliance with national regulations is essential for access to the Italian market.
  • Justifications for restrictions must be proportionate and well-motivated.
  • Companies must be prepared to demonstrate their compliance with consumer protection regulations.

Conclusions

In conclusion, Judgment No. 18625 of 2024 represents an important step in defining the limits to freedom of establishment in the betting sector. Companies must be aware of the existing restrictions and the necessary justifications for operating legally. It is crucial for industry operators to understand these dynamics to effectively navigate a constantly evolving market.

Bianucci Law Firm