Operators of internet betting sites in Europe face an uncertain future after a recent European Court ruling which allows governments to ban them as a way to crack down on crime.

The court case was brought on by a dispute between the Portuguese government and Bwin International Ltd., one of the largest online gambling operators in Europe. Bwin sponsors some of Europe's most important football teams, such as Bayern Munich, Real Madrid and AC Milan. The company had been fined 74,500 euros ($106,765) for offering its services in the country, which is against Portuguese law.

According to the European Court's ruling, online bookmakers can be shut down in countries where the government holds exclusive rights to administering gambling activities, such as Finland, Greece, the Netherlands and Sweden.

Germany banned online betting last year, and private German lottery companies ceased their operations at the beginning of 2009. Only state-run betting and lotteries are now permitted.

In its ruling, the European court cited the high-risk of fraud and criminal activity that often go hand-in-hand with online betting as a reason for its decision, adding that bookmakers who sponsor competitions could "influence the outcome of events."

Concerns about illicit gaming

The head of the European Lotteries association of state gaming organizations, Friedrich Stickler welcomed the ruling.

"You have to have a license in a country to operate," Stickler noted. "For me it is the beginning of a new era in the internet gaming sector."

However, Bwin says they acted in compliance with EU rules granting unrestricted movement of capital within the 27-member bloc. Bwin director Karin Klein added that countries that block online betting companies "will end up with a huge black market."

The European Gaming and Betting Association's legal expert Siegbert Alber said the ruling was "not fair" because it put Bwin, "a serious provider" in the same category as "unscrupulous providers."

vj/mo/AFP/dpa/AP
Editor: Trinity Hartman