Since last week, two Greece-based betting shops owned by Stanleybet International Ltd. have been raided after the Hellenic betting monopoly, OPAP S.A., challenged Stanleybet's right to operate on its home turf.
In late October, Stanleybet opened two betting shops -- one in Athens, the other in Thessaloniki, the country's second-largest city. The outlets are a direct affront to OPAP's right to offer, on an exclusive basis, betting services to Greek residents.
On Thursday, Greek authorities arrested one employee at the Athens shop, and on Saturday, three customers and one employee were arrested at the Thessaloniki shop, according to Greek press reports. All arrestees were subsequently released without charge.
The legal action, however, comes as little surprise.
On Oct. 29, OPAP Chief Executive Christos D. Hadjiemmanuil went on record with Reuters and warned: "We will take legal action. Until now, nobody has challenged OPAP's monopoly in Greece, through stores."
Stanleybet's official interest in Greece dates to 2005 when it filed for a license with the Greek government. The application became grounds for a legal battle, and the case remains before Greece's highest administrative court, the Council of State.
In a prepared statement, Stanleybet said that it believes the arrest and subsequent release of bettors and its employees confirm that it is operating in conformity European Community law -- otherwise, the case would have gone to trial "without further investigation."
In June 2007, the European Commission initiated an infringement proceeding against Greece. In February 2008, the commission sent its reasoned opinion, commencing the second stage of the proceeding.
Mr. Hadjiemmanuil said then that his company would use "all available means" to protect its position.
The commission has been measured in responding to the Stanleybet arrests. It has been quoted as saying that Greek sports betting law -- which the infringement proceeding covers -- is not in line with European community law.
Stanleybet operates over 1,500 shops in Belgium, Croatia, Cyprus, Italy, Poland and Romania.
OPAP has held a monopoly on Greece's betting and lottery markets since 2000, when it agreed to a 20-year contract with the government for 323 million euros. It operates about 5,500 outlets in Greece and Cyprus.
The company's shares, which are listed in Athens, were up 1.72 euros, or 9.67 percent, to 19.50 euros today.