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Giant Austrian-listed betting group Bwin Interactive believes it has spotted a loophole in the Czech law, which currently bans domestic companies from providing internet betting services. Bwin claims that the existing law only serves to block domestic companies and does not cover those operating from abroad.
Recent ECJ rulings for free movement of trade and services in the online betting sector (such as Placanica) only add strength to the Bwin argument and whatever the risks, it seems that the Czech pie is big enough to tempt the Austrian firm and others to take a bite. Czech Business Weekly reported that Czechs gambled Euro 124.04 million through Bwin alone last year, with domestic betting firms such as Fortuna unable to get a piece of the action. The frustration generated by the situation led to the Office for Protection of Economic Competition (ÚOHS) in March this year threatening to challenge the state over the discrimination while Fortuna said it might try to offer online services from an overseas office.
Bwin has run its Czech Web site, www.bwin.cz, since 2002, drawing its main income from sports betting, while also offering poker, casino, no-download games, table tennis and golf options. While it and Gibraltar-based daughter company bwin International respect online gambling bans issued by non-EU countries – two months ago the group terminated its activities in Turkey – it is confident Czech Internet gambling law will remain subordinate to the European courts’ line on the issue. Bwin has more than three million clients worldwide and is number one on the European online betting market.
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