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, falls within a complex legal context concerning restrictions imposed by national legislation on betting activities. This decision highlights the tensions between national regulations and European directives, particularly regarding the freedom of establishment and provision of services. In this article, we will analyze the content of the judgment and its implications.

Context of the Judgment

The case involved an English betting company, M. (J.), pitted against the Italian State, after the latter had denied access to selection procedures for carrying out betting activities. The Court of Appeal of Rome, confirmed by the Court of Cassation, ruled that such preclusion did not violate EU law, justifying it based on objectives of general interest, such as combating crime and protecting consumers.

Relevant Legal Principles

Exceptions - Basis - Factual Circumstances. Restrictions imposed by the internal legislation of a Member State on the activity of collecting, accepting, registering, and transmitting bets by companies based in another Member State constitute a violation of the freedoms of establishment and provision of services under Articles 49 and 56 TFEU, if they are not justified by imperative reasons of general interest, such as consumer protection, prevention of fraud and incitement to excessive gambling expenditure, as well as, more generally, disruption of social order. Member States are free to set the objectives of their gambling policy and to define in detail the level of protection sought, with the sole limitation of respecting proportionality. (In this case, the Supreme Court confirmed the lower court's judgment which had rejected the compensation claim brought by an English betting company, operating in Italian territory through a network of agencies, against the Italian State, on the grounds that the preclusion to access selection procedures for the cross-border provision of betting services – which the Italian legislation ratione temporis applicable provided for joint-stock companies with widespread shareholding – did not constitute a violation of EU law, translating into a limitation on the free provision of services justified by specific objectives, such as combating crime and controlling 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 can be justified by the need to protect consumers and prevent fraud. Below are some key points:

• Compliance with national regulations is fundamental for access to the Italian market.
• Justifications for restrictions must be proportionate and well-founded.
• 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 the freedom of establishment in the betting sector. Companies must be aware of the existing restrictions and the justifications required to operate legally. It is crucial for sector operators to understand these dynamics to effectively navigate a constantly evolving market.