But, as with any measure of this type, the new law also penalised many innocent businesses that were trying to make a living from genuine amusement machines. As the move also coincided with the internet revolution, it made life very difficult for those who wanted to open and operate internet cafes. With Greece being such a popular tourist destination, it is almost unconceivable that internet cafes shouldn't thrive - but how to stop customers from playing games online?

Leading touchscreen manufacturer Funworld took up the challenge to highlight the unfair nature of the law, having always done good business in the region through its subsidiary Funworld Greece, run by Nikos Serdaris - an industry veteran. The Funworld motto of, "No gambling, violence or pornography," highlighted the unfairness of the ban. In addition, the company's focus on sporting achievement and an international community of players helped bolster the games' wholesome image.

Between them Funworld and Serdaris managed to bring the case more firmly under the eyes of the European Commission, who agreed that the ban was not only unfair and asked the Greek government to make changes.

Despite promising to amend its legislation in response to the Commission's reasoned opinion sent in April 2004, Greece did not introduce any change until four years later.

Two years ago, the European Commission formally reminded the Greek government of its obligation to lift its total ban on gaming machines, including computer games. The European Court of Justice in Case C-65/05 of 26 October 2006 ruled that the Greek laws which ban the installation and operation of all gaming machines violate a number of Internal Market principles.

The Commission believed the Greek law in question was not only incompatible with the provisions of the EC Treaty on the free movement of goods and services. The fact that the law was not notified at the draft stage also constituted an infringement of Directive 98/34/EC, which provides for prior notification of national regulations laying down technical rules for on-line goods and services.

The Commission believes that the Greek legislation is disproportionate, insofar as it applies not only to equipment (slot machines) and games of chance, which might give rise to social concerns but also games of an entirely different nature.Now the Greek Government has come up with the Draft Provisions on Technical Games, which was filed with the European Commission in the framework of Dir. 98/23 EU (notification 2008/184./GR). And the industry, including Funworld and Nikos Serdaris still believes the new provisions are in breach of the European Law.

This Draft is supposed to fulfill Greece's obligations under EU Law and under the Judgment of the ECJ in the case C-65 (26th October 2006), condemning Greece for the having prohibited, by the issuance law 3037/2002, all electric, electromechanical and electronic leisure games. "In our view the Draft does not, by far, comply with EU law and proves only the inexplicable persistence of the Greek authorities to maintain the prohibitions. It should be stressed that in the present case there is no issue regarding to gambling games; it is a regulation targeting at and affecting the leisure games, only," says Serdaris.

In particular, the Draft:

• Maintains the general prohibition of the amusement games games lawfully circulating in other Member states 
• Introduces unpermitted procedures for establishment, operation and conducting of amusement games lawfully circulating in other Member states.
• Introduces unpermitted procedures for establishment, operation and conducting of leisure games.
• Requires licenses for the conduct of professional activities related to the exploitation of electric, electromechanical and electronic  amusement games lawfully circulating in other Member states
• Imposes an unpermitted "fee  for examination and characterization" of games lawfully circulating in the other Member states 
• Imposes an unpermitted annual "Entertainment Technical Games Fee"
• Permits the establishment, operation and conducting of the entertainment games only the establishments strictly intended for playing entertainment games and prohibits the conducting of entertainment games by persons under the age of 18, including the cases where such games are rated as suitable for children.

Even if some concessions were to be granted to Greece due to the problems in the past with the free circulation of leisure games - these new Draft provisions remain disproportionate - particularly compared with the law in other Member states.

"We are not against an effective control of illegal misuse of electric, electromechanical and electronic games, in particular if they are converted into gambling. But such a control cannot practically eliminate the possibility of conducting business with electric, electromechanical or electronic in Greece as elsewhere in the EU. Honest, effective and lawful controls can be conceived and conducted," says Serdaris.

"In short, the Draft worsens the situation compared to the existing law 3037/2002, a law already dismissed by the European Court of Justice, but still implemented by the Greek authorities.  The European Court of Justice, by its Judgment of 26th October 2006 in Case C-65/05 , has found that Greece has failed to fulfil her obligations under European community law. In the terms of the Judgement, the terms of the Decision, Greece, "by inserting into Articles 2(1) and 3 of Law No 3037/2002 the prohibition, subject to the criminal and administrative penalties set out in Articles 4 and 5 of the same law, on the installation and operation of all electrical, electromechanical and electronic games, including all computer games, on all public or private premises apart from casinos, the Hellenic Republic has failed to fulfil its obligations under Articles 28 EC, 43 EC and 49 EC and Article 8 of Directive 98/34/CE of the European Parliament and of the Council laying down a procedure for the provision of information in the field of technical standards and regulations and of rules on Information Society services, as amended by Directive 98/48/EC of the European Parliament and of the Council of 20 July 1998."

"The Greek government has never complied with the obligations emanating form the Judgment; on the contrary clear documentation from the Greek law and enforcement authorities prove their decision not to respect the Judgment and to keep on the implementation of the dismissed by the ECJ law 3037/2002.  After the Judgment, dozens of cases have been and are still brought before Court on the basis of Art. 2 (1), 3, 4 and 5 of law 3037/2002, as if the Judgement did not exist. The fact that Greek courts, in general, acquit imprisoned operators of leisure games and invalidate the heavy administrative fines imposed does not by itself alter the continuing violation of the European law by the Greek authorities," he adds.

On the basis of this situation some companies have filed a new complaint against this conduct of the Greek authorities, as a result of which  the Commission started new judicial procedures against Greece on the basis of Art. 228 par. 2 EU, menacing very high fines for non compliance with the Judgment.

The "Draft provisions on technical leisure games" under discussion here are submitted by the Greek Government to the Commission in the framework of the procedures of Dir. 98/34 EU (notification 2008/184/GR), obviously not as a result of the Judgment, but 18 months after, and only after and as a result of this second referral to the Court. 

The provisions of Draft also are in breach of the European community law, in particular Art. 28, 43, 49 EU, and, therefore, should not be accepted. The Draft does not indicate a genuine intention of the Greek government to comply with the Decision and, more generally, with the requirements of the European Law with regard to the free circulation of the leisure games.

"We emphatically stress that we are raising exclusively the issue of leisure games. We are not raising any problem whatsoever with regard to any regulation related to the electronic gambling, or any other type of gambling or betting, because we are not involved in the business of gambling or betting at all," says Serdaris.

"As already mentioned, Law 3037/2002 as well as the Draft aim at the leisure games if played by any electronic, electric or electromechanical device. Chess, if played over a computer or with a computer falls within the prohibition, as well as backgammon or trivial pursuit or even scrabble, if played, e.g., in a PC in a coffee shop waiting for your flight to be called or for your train to come. So does the GameBoy, a very well known elementary electronic game, even if a ten year's kid plays with a game rated under Pegi for 7+ year's of age!"

"We also stress that the Greek police authorities are still implementing the total ban of all leisure electric, electromechanical and electronic games, as provided by the dismissed by the ECJ law 3037/2002. The intra community trade has been strongly affected by the prohibition."

From the legal point of view the Draft is breaching the European law, while factually it creates a situation even worse than the situation it is supposed to ameliorate. It proves a clear unwillingness of the Greek authorities to comply with their legal obligations under EU law.

"We are asking the Commission not to accept the Draft either as a compliance with the Judgment or as a basis for a discussion. We are strongly suggesting that other legislations, including legislations notified to the Commission under Dir. 98/34 are able to serve as a basis for a discussion for a sound and lawful solution. We are ready to participate in any direct or indirect consultation with any competent authority.

If additional information or analysis is needed and duly asked, we are ready to provide it," concludes Serdaris.