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Ian Jewers, Managing Director, Network Media Services, i.jewers@networkme diaservices.net


The decision to enter a new, regulated territory brings with it a host of challenges for the operator. Compliance with new regulations is just the tip of the iceberg, with personnel, language implications and product development all vying for investment. In this rush to be early to market, it’s all too easy for affiliate marketing to get pushed to the back of the queue. Affiliates today are responsible for a large percentage of the new business coming in to this industry, so the cost of underestimating their importance, particularly when entering a new market when it is vital to achieve share quickly, can be significant. Those operators with affiliate systems that can be deployed rapidly to meet new regulatory requirements, that are flexible enough to meet all localisation needs and that have the power and scope to deliver a competitive service, will always hit the ground running.


government owned Greek monopoly, OPAP, will certainly apply for a licence as the company searches for a software provider to ensure the operator remains competitive in a regulated market – the leading contenders are 888 Holdings plc and Playtech. The company has already started trialling fixed-odds virtual games and greyhound racing, according to officials from OPAP.


With benefits come burdens, as the proposed regulated market is facing similar barriers to entry and other criticisms as the French regulated market. Undoubtedly, in the short term, operators will face considerable costs primarily borne out of taxation levels of 30 per cent of Gross Gaming Revenue. Although this level is relatively high, double that of the UK, it is preferable to the unviable 6 per cent on turnover which was originally suggested in early draft legislation.


In any case, operators will be required to commit themselves for the long-run as the regulated market is expected to grow strongly and this growth will negate initial costs. However, with the country’s economic situation becoming increasingly grave and speculation that Greece may exit the Euro and return to a devalued Drachma, it is unclear what effect the crisis will have on the ability of Greek gamblers to fund their hobby.


The dominant position of OPAP, acting to the detriment of private foreign operators has long


been challenged by the British bookmaker, Stanleybet International. In 2008 the company had its retail outlets closed and headquarters raided by OPAP officials who claimed that the bookmaker was infringing on the monopoly’s rights. A year later, the shops were re-opened only to be closed again - behind the scenes this legal spat has continued and this year the Greek Council of State (its highest administrative court) referred the matter to the European Court of Justice seeking the opinion of Europe’s highest court on whether OPAP’s monopoly infringes on Stanleybet’s right to offer services to members of the EU. The verdict of this case may have repercussions for OPAP’s role as a land-based monopoly in an open regulated market as well as clarify the role of monopolies throughout Europe following the landmark judgement of Bwin v Santa Casa.


In 2008 the European Commission issued a reasoned opinion requesting that Greece amend its antiquated laws that establish OPAP as the sports betting monopoly. In the same


in januaRy of this yeaR the GReek GoveRnment


passed its dRaft leGislation.


year, the European Court of Justice also ruled (C-65/05) that Greece’s bizarre 2002 blanket ban on ‘technical machines’ in public places (law 3037/2002), including machines that do not involve gaming, was “disproportionate to the aims pursued” and in breach of European law as contrary to the fundamental principles of services and goods. In the same year, the Commission ordered Greece to pay €31,536 penalty payment for each day that it delayed in amending the legislation as well as a lump sum of €3 million to the Commission. Nearly three years on, the European Commission has received over €2 million in fines although the new draft, if it is compliant with EU law may finally bring an end to this tragic Greek episode.


As a response to the need to comply with the above rulings and largely due to a desire to draw tax revenues from unlicensed operators, the Greek government announced in the last year that it was considering regulating online gambling and reforming its land-based gaming regulations. In January of this year, the Greek cabinet passed the long-awaited draft gambling legislation following a short consultation period. Delays ensued due to criticism that the draft went too far in liberalising the market – this led to some amendments and a few months later in April, the Greek government finally sent the draft to the European Commission under the 98/34 Procedure requirement – this is an obligation by Member States to notify the European Commission all


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GReece


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