Italy’s legal battle over the 2018 Dignity Decree, which prohibits all gambling-related advertising, is set to reach a new milestone as the country’s highest administrative court, the Council of State, has decided to refer the matter to the European Court of Justice (ECJ). This referral follows a series of legal challenges, including a €50,000 fine imposed on LeoVegas by the Italian communications authority, AGCOM, for promoting its online gambling services in violation of the Dignity Decree.
Dispute centers on LeoVegas’ challenge of advertising fine:
The dispute stems from a series of advertisements aired by LeoVegas for its Italian brand, Winga.it, on Sky 237. These ads, which featured online slot games, were broadcast in 2019, a time when Italy’s nationwide gambling advertising ban had already been enacted. AGCOM, the regulatory body overseeing communications in Italy, issued the fine, stating that LeoVegas’ actions violated the Dignity Decree.
LeoVegas contested the fine, arguing that the advertisements were broadcast before the official implementation of the Dignity Decree in 2019. The company further claimed that as the advertisements were part of its business activities, they fell under the classification of “information society services,” which, under EU law, should be exempt from the ban. According to SBC News, LeoVegas sought to overturn the penalty through an appeal to the Regional Administrative Court (TAR), but the court dismissed the case. The company then escalated the matter to the Council of State, which, after reviewing the case, determined that the dispute raised important questions regarding EU law. As a result, the Council of State decided to defer the ruling to the ECJ.
The central question now rests with the ECJ, which will decide whether Italy’s blanket ban on gambling advertising complies with European Union laws, particularly those governing the free movement of services and non-discrimination across member states. The ECJ’s judgment could have significant implications not only for Italy but for other European countries that are considering similar restrictions.
The Dignity Decree has long been a point of contention in Italy, as it severely limits the ability of gambling companies to advertise and sponsor sporting events. Since its introduction, there has been ongoing debate about its impact on both the gambling and advertising sectors. Proponents of the decree argue that the ban is necessary to protect public health by limiting the exposure of gambling promotions to the public. However, critics, including LeoVegas, contend that the ban unfairly restricts the freedom of businesses to operate across EU borders and may violate EU principles of free movement.
Legal implications for Italy and the EU:
The ECJ’s ruling will need to address several key legal issues, including whether the gambling advertising ban unfairly discriminates against companies based in other EU countries. If the court finds that the ban unjustly restricts cross-border services, it could force Italy to revise or even revoke the Dignity Decree. The court will also examine whether the ban is proportionate to its stated health protection goals or if it constitutes an excessive restriction on free market principles.
This legal process takes place against the backdrop of ongoing discussions within Italy’s Senate about potentially revising or even repealing the Dignity Decree. Stakeholders in the media, sports, and gambling industries have raised concerns about the long-term impact of the decree on their operations, leading to talks between the Ministry of Economy and Finance and sports leaders to explore potential amendments. These discussions may influence the Senate’s future approach to the decree, especially in light of the ECJ’s impending decision.
The outcome of this case could set a significant precedent for other EU countries contemplating similar advertising bans. Nations such as the Netherlands are already considering stringent regulations in the gambling sector, including a complete ban on gambling advertising. The legal analysis conducted by the ECJ will likely guide future regulatory approaches, balancing public health concerns with the free movement of services within the EU.
LeoVegas’ legal strategy, which centers on classifying its ads as information society services, could create challenges for Italy’s current regulatory framework. A favorable ruling for LeoVegas could pave the way for other operators to contest similar advertising restrictions across Europe. Conversely, a decision upholding the Dignity Decree could empower Italy and other member states to enforce stricter gambling regulations under the guise of health protection.