Online sports betting and gaming companies are pleased to hear that the European Commission is increasing pressure on European Union member states who have been defiantly protecting state-run gambling monopolies and effectively forbidding cross border competition. The EU Commission's most recent crackdown came in the form of Reasoned Opinions that Finland, Denmark and Hungary's online gambling regulatory framework does not foster and specifically call for fair competition within the international online sports betting industry.

While not nearly as extreme as the situations in France, Germany and The Netherlands, the EU Commission's decision is a step in the right direction for putting an end to state-operated gambling monopolies who have been feeling threatened by encroaching business from the online sector for some time now. Giving a fair voice to the countries opposed to cross border online gambling, there certainly needs to be more regulatory framework to ensure that governments are receiving a portion of taxed funds earned from their own citizens.

Despite the touchiness of the matter, however, the fact remains that Article 49 of the EU Treaty and ECJ law establish sports betting as a cross-border service. As such, EU member states have the right and freedom to provide sports betting services within the borders of other EU states. On the contrary, some member states have gone so far as to pass legislation specifically protecting their state-run gambling operations, while blockading private European online gambling companies from offering their services.

Such was the case with Austria-based Bwin, whose two top executive officers, Norbert Teufelberger and Manfred Bodner were arrested in France for allegedly violating French laws protecting their state-run gambling monopoly. Yet, Teufelberger himself may have the last word now that the EU has given a clear warning to France, Austria, Germany and others to make changes to their current legislation governing online gambling.