Spanish gaming operator Codere is suing online gambling operator Bwin and La Liga football club Real Madrid over what it claims to be unfair advertising.
The company, which operates sports betting venues, bingo halls and casinos around the world, brought a commercial complaint against Bwin and Real under the unfair competition law in the Madrid Commercial Court.
The complaint claims that Bwin has carried out illegal advertising of games of chance and betting in Spain in cooperation with Real, whose shirts it sponsors. These advertising and promotional activities, it says, have not been authorised by the responsible authorities or made subject to any statutory condition. Neither are they protected by EU cross-border laws. Under Spanish law, therefore, Codere states that these activities are illegal and unfair.
The group argues that despite not having licences to operate in Spain, online operators such as Bwin are engaged in transactions with Spanish gamblers and are using "aggressive" advertising. By contrast, authorised gambling operatios are not permitted to advertise or may only do so subject to strict regulations after having obtained permission from the relevant authorities. They are not permitted to operate games via the internet under the current law.
"We are living through a situation like blood letting," said Codere in a statement, "because Bwin operates from a tax haven without paying gambling taxes or duties; however, Codere, or for example its subsidiary operating the authorised Canoe bingo and sports betting hall, situated a few metres from the Santiago Bernabeu stadium, in addition to having its authorised advertising strongly restricted, pays as gambling duties alone the same amount as that paid by Bwin to Real Madrid each year for its sponsorship. The existence of unfair competition is obvious."
