SOURCE: Bloomberg

Charlie McCreevy has professed two passions as European Union commissioner: fighting protectionism and betting on horses. That combination could pay off for bookmakers such as William Hill Plc, adding 20 cents a share in operating earnings.

McCreevy's interests coincide as the European Commission mounts legal challenges to state gambling monopolies or restrictions in 10 of the 27 EU countries. Most recently, the EU agency warned France and Sweden not to bar foreign competitors in sports betting, or face lawsuits as soon as this year.

``We're supposed to have an open market,'' McCreevy, Ireland's former finance minister and a racehorse owner, said in an interview. He said the convergence of his gambling hobby and economic competition is a ``pure coincidence.''

Ending state-run monopolies on sports betting and lotteries would increase the European market 23 percent to about $117 billion, Global Betting & Gaming Consultants in West Bromwich, England, said in a report.

London-based William Hill could boost earnings before interest and taxes by 35.7 million pounds ($72 million), Numis Securities wrote Sept. 3, by breaking into as many as five countries, including Germany and Greece, where the commission is trying to strike down restrictions. That equates to 10 pence a share for the company's 352 million shares.

The campaign is a ``potential benefit'' to the shares, Gavin Kelleher of Merrion Stockbrokers in Dublin said in an interview. ``We are definitely seeing positive first steps.''

William Hill, which said today that Chief Executive Officer David Harding will step down on Sept. 30, had net earnings per share of 44.9 pence last year.

EU High Court

The commission has also filed formal warnings to Denmark, Finland, Hungary, the Netherlands, Austria and Italy. As the EU commissioner for the internal market and services, McCreevy is responsible for holding governments to the bloc's business rules.

The commission sues at the European Court of Justice, the EU's highest court, which can overturn national laws and fine countries.

While the EU has no directive on gambling, McCreevy and the commission argue that the bloc's treaty generally prohibits discrimination against businesses because they're from another member country.

The Luxembourg-based court has supported efforts to open gaming markets. Countries can't bar foreign companies to protect tax revenue, the EU's highest court ruled in a 2003 decision against Italy. Italy lost once more on Sept. 13, for awarding bookmaking licenses without a competitive auction.

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