2024-04-05 09:04:52
When determining the restrictions of specific commercial activity in the territorial planning, the actions of the municipality must be objectively justified and based on rational considerations, stated ST.
The case was examined following the applications of several persons who have received licenses for the organization of gambling, based on permits issued by the municipality to open gambling halls in specific places in the administrative territory of Riga.
The contested norm stipulated that it is prohibited to organize gambling and provide relevant gambling services in the entire administrative territory of Riga, except when such gambling establishments are located in four- or five-star hotels.
The court recognized that the organization of gambling is a legal form of commercial activity existing in conditions of free competition. The legislator has granted the municipality the competence to independently evaluate in which places or territories of the relevant municipality there should be restrictions on the organization of gambling. Also in the territory planning, the municipality has the right to determine an unlimited number of territories in which it is not allowed to organize gambling. However, the local government must comply with the principle of territory evaluation specified in the authorization granted by the legislator.
ST concluded that the municipality has not justified why the organization of gambling is prohibited in the functional zoning of the territory plan, where commercial activity is intended as one of the permitted uses of the territory.
ST recognized that in the process of developing the territorial plan, the restriction on the organization of gambling should be justified by the evaluation of the functional zoning of the specific territory.
ST emphasized that the local government, when setting restrictions on the organization of gambling, must ensure, on the one hand, the observance of the basic rights guaranteed to merchants in Article 105 of the Constitution and other provisions of the Constitution, and, on the other hand, the protection of the rights of individuals, reducing the possible risks of gambling addiction.
In compliance with the principle of evaluation of territories established in the Law on Gambling, the local government in the territory planning process must evaluate, for example, the construction of the specific territory and the location of infrastructure facilities, population density, interests of residents and merchants and other important aspects, which can be the basis for determining restrictions on the organization of gambling.
In addition to the restrictions set by the Law on Gambling on organizing gambling, after evaluating the development of the specific territory and the location of infrastructure objects, the municipality can prohibit the organization of gambling, for example, near educational, cultural, sports institutions and complexes, active recreation and children’s playgrounds.
Similarly, restrictions on the organization of gambling can be determined after the relevant assessment in areas where there is a high intensity of public movement, for example, near public transport stops, as well as in low-rise and high-rise residential areas. Before setting limits on the organization of gambling in the entire administrative territory of Riga, the municipality did not carry out such an assessment.
At the same time, the court recognized that in the territory planning process, when determining the limits of specific types of gambling commercial activities, it is not rational and useful to carry out an individual evaluation of each place.
Therefore, the limitation of fundamental rights contained in the contested norm does not comply with the norms of the Constitution. With regard to the applicants and other persons who have started and continue to protect their fundamental rights with general legal remedies, the ST recognized the contested norm as invalid from the moment of infringement of a person’s fundamental rights.
It has already been reported that the ST case was initiated following the applications of gambling companies SIA “Olympic Casino Latvia”, SIA “Alfor” and SIA “Joker LTD”.
In 2018, the Riga City Council decided to liquidate 42 gambling halls in the capital, which are located in the historical center and its protection zone, as well as in the territory of mixed buildings. An exception was made for four- and five-star hotels.
The owners of the gambling halls appealed to the court against the municipality, but the ST council recognized the restrictions as in accordance with the basic law. Currently, there are no more gaming halls in the center of Riga.
On the other hand, in order to close gambling halls throughout the city, the municipality provided for such a possibility in the new Riga territory planning adopted in 2021.
The entry into force of the plan was temporarily suspended by the then Minister of Environmental Protection and Regional Development, Artūrs Toms Pleš (AP), thus delaying the closing of gambling places as well. However, the next minister, Māris Sprindžuks (AS), canceled this decision and in September 2023, the Riga municipality canceled 139 permits for gambling places outside the city center as well. These gambling places must be closed within five years.
The municipality stated that in this way society will be protected from the adverse effects of gambling.
The Latvian Games Business Association, on the other hand, believes that the rights of merchants to property, the principle of legal trust, as well as the rights of foreign investors are being violated.
2024-04-05 09:04:52