In a joint industry letter, 17 trade associations representing the leading gambling operators in the EU call for better regulatory cooperation between Europe’s gambling authorities.
The 17 trade associations represent gambling operators in EU countries such as Denmark, Sweden, Latvia, Austria, Belgium, Netherlands, Spain and more. Together, the industry group has sent a letter to Thierry Breton, the European Commissioner for Internal Market. In this letter, they urge the European Commission to re-establish the EU Expert Group on Gambling Services.
Recently, 13 EU member states made a similar call. The European Gambling and Betting Association, EGBA, expressed their support of this in a statement on their website. The current lack of a shared EU framework for gambling makes it difficult to deal with issues related to the gambling sector, EGBA:s Secretary General Maarten Haijer says in the statement. EGBA means that most issues stretch across several countries naturally and therefore need common solutions.
Growing interest for online casinos
People from countries all over Europe have taken up an interest in online gambling. The industry has continued to bloom ever since the internet started to become accessible. Smartphones and laptops have contributed to more and more people trying out their luck to become a casino winner online. The gambling legislation differs depending on which country the casino operator is registered in though, causing some confusion.
Different regulations depending on country
As an example, a player in Sweden will be restricted to a one-time bonus of a sum no higher than 10 EUR when playing on an online casino with license in Sweden. They will also have to limit themselves to a certain deposit per week which cannot be exceeded. At the same time, the Swedish player is allowed to choose an online gambling site from a country outside Sweden, which doesn’t have to follow the relatively strict Swedish gambling laws. On this non-Swedish licensed casino, the player may have no limits when it comes to bonuses and deposits.
Competition from websites outside the EU
In the letter from the 17 EU and EEA-based associations of online gambling providers, the problem with gambling websites based outside the EU is highlighted. Companies inside the EU are worried about the growing competition from these websites, since they don’t pay taxes in the EU and often lack the strict gambling licensing and other requirements that characterise many EU member states. Just like with the example of Swedish players being allowed to play on any gambling website despite Swedish online casinos being heavily regulated, EU citizens are allowed to play on websites that operate outside of the EU.
At first glance, this might not seem like a problem. However, we have to consider that this doesn’t just affect the EU member companies, which will have an increasingly hard time as the competition from outside the union grows. It also affects players in the EU, who will not be protected by the EU regulations, as the online gambling providers point out in the letter. This includes important safety aspects like anti-money laundering and data protection.
Cooperation at EU-level instead of national laws
With this in mind, the trade associations mean that the EU needs better cooperation and information exchange between countries when it comes to gambling. They mean that this is necessary in order to deal with the problem of gambling websites outside the EU that target consumers in the EU. If the regulations were to become more structured, this would likely make gambling in the EU a more attractive choice for EU citizens compared to unregulated and risky websites.
Furthermore, a standardised regulatory system for all countries would be more effective compared to national laws, according to the signatories. They mean that an improved customer protection is vital in the industry and is best achieved by cooperation at EU-level where the gambling authorities can swap information and come up with solutions.
“Touches the lives of millions of Europeans”
In conclusion, the signatories mean that in order to make the online gambling market in the EU a well-functioning and safe place, they need structure in the legislation on EU-level. They mean that it “touches the lives of millions of Europeans” and therefore demand that the EU Expert Group on Gambling services will be re-established. This group used to be a platform for sharing experiences and information, working together for better consumer protection. The Commission decided to disband the group in 2018, even if most gambling regulators according to the EGBA thought positively of the group.
While there are a large number of safe and correctly licensed gambling websites out there, the growing interest likely means that the number of websites on the black market and risky operators will continue to increase. We will have to wait and see in order to find out how and when the EU Commission decides to act.
