Italy loses Europe gambling case

The EU is hoping to open up the European betting market

Shares in bookmakers have risen after the European Court of Justice (ECJ) ruled that Italian gambling laws were too restrictive.

The ruling relates to the prosecution of three men who were intermediaries for Italians gambling with Britain's Stanley International Betting.

The Italian courts had previously rejected EU rulings on gambling in the interests of protecting consumers.

Listed companies are excluded from holding gambling licences in Italy.

The news lifted share prices of bookmakers across Europe. In the UK, Ladbrokes shares climbed 2.7% while William Hill rose 1.1%.

Breaking down barriers

The ruling reinforces the ECJ's decision in 2003 that the Italian law permitting only the state or its licensees to take bets broke EU laws on the freedom to provide services.

The ECJ has also ruled against Italy's use of criminal penalties to punish people who break its gambling laws.

The decision is good news for the EU Internal Market Commissioner Charlie McCreevy who wants to break down national barriers in gambling markets.

Many European countries only allow the state to operate gambling on horse-racing and football matches and there are several ECJ judgements pending against them.