EU online gaming up for debate
In 2008, the turnover for online gaming was 6 billion euro in the EU and it is expected to more than double by 2013.
But although the market is large and growing, there is no EU legislation. Instead EU countries operate with very different regulations of the gaming market individually.
Because of this the European Commission has issued a so-called 'Green Paper', which envisages a broad debate on the future of the European gaming market with the involvement of stakeholders such as the commercial gambling industry, national gambling monopolies, sports and media organisations.
The aim is to obtain knowledge and experience which the Commission can then use to clarify the area of online gaming.
"With this Green Paper, we have launched an ambitious consultation with no pre-determined views on its possible follow-up. The on-line gambling market in the EU continues to grow rapidly and generates important revenues that are sometimes channelled into good causes. Its expansion must go hand-in-hand with a determination to protect our citizens, especially minors, and to ensure that offers of these types of services within the EU are sound and well-regulated. It responds to calls from the European Parliament and the Member States for us to address these questions jointly. This consultation is not about liberalisation of the market, it is about ensuring that the market for on-line gambling services within the EU is well-regulated for all", says Michel Barnier, European Commissioner for Internal Market and Services, in a press release.
Free market forces and national interests
According to the Commission, approximately 15,000 websites offer betting in Europe - some legally and others illegally, while many pages lie in a grey area because they are allowed to operate in one EU country but also offer games in another.
The various EU member states each have their own gaming laws, and the many different national approaches to legislation, combined with online gaming's transboundary character represents a growing challenge for the EU's internal market.
In recent years, especially the commercial gaming companies have tried to make an end to national gaming monopolies through lawsuits arguing that free trade across EU borders should be possible.
But a number of concerns and interests mean that it is not possible to automatically liberalize the gaming market in the EU, the Commission concluded in its 'Green Paper'. It identifies three overarching public policy concerns to be taken into consideration:
- Consumer protection in relation to particularly game addiction and minors.
- Public policy focusing on detecting and preventing fraud and other crimes in the gaming industry.
- Funding for charitable and philanthropic activities and events - including channelling of money from online gaming to the activities in the public interest, like sports.
Need for discussion
The national, often state-owned lotteries and gaming companies welcome the Commission's discussion paper.
"We are delighted of the European Commission’s change at heart to enter into a real political dialogue with EU law-makers – the Member States and the European Parliament - rather than continuing to seek legal confrontation. This political process initiated by the Green Paper is by no means aimed at the deregulation (‘liberalisation’) of online gambling, as Commissioner Barnier has publicly stated many times," says President of European Lotteries, Friedrich Stickler in a press release in which he indicates the need for regulation in this area.
But also The European Gaming and Betting Association, representing large commercial gaming companies like bwin and Unibet, is pleased with the Commission’s new 'Green Paper'.
In a press release the Secretary General, Sigrid Ligné, calls for unified rules in the EU:
"Online gambling is a cross-border market. Consumption is cross-border as well. Clearly there's a strong need for harmonised rules. We think there is good momentum for the EU to assume strong leadership in this area."
Until 31 July, stakeholders can answer a series of questions raised in the discussion paper thereby contributing to the consultation of online gaming.