Globally, the online gambling market is already bringing in the equivalent of over half a trillion Euros each year, and double-digit annual growth is projected for the foreseeable future as more countries relax restrictions and support locally licensed iGaming, rather than banning it or leaving it in legal limbo. Despite this, there are still significant regional differences in how the web-based casino industry operates, and that’s certainly true in the EU.
A Degree of National Control
Unlike some aspects of EU membership, which require adherence to central regulations for certain industries, online gambling is an area where each country can oversee and control online gambling businesses as it sees fit. In Germany, this is handled by the GGL; in Sweden, by Spelinspektionen; and in Spain, by the DGOJ.
The result is a degree of fragmentation and a divergence in terms of whether it’s even possible to set up a gambling business as a private enterprise. So while Germany and Sweden both allow private operators to apply for licenses, Finland maintains a state monopoly on all forms of gambling, both land-based and online.
In turn, this fragmentation means that companies that want to operate in multiple EU nations have to apply for and maintain individual licenses in each one, rather than having a single, central licensing body to deal with. That’s why you’ll find that a site like the Slots of Vegas Casino might accept customers from places like the US, but has limited or no availability in Europe.
Top-Level Compliance
Despite there not being a central online casino regulatory framework in the EU, there are other continent-spanning regulations that online gambling businesses must adhere to if they want to serve customers in this part of the world. GDPR is the major compliance concern for companies in this and all industries, and involves a multitude of requirements relating to how user data is collected and managed.
Similarly, there are anti-money laundering directives that are part and parcel of compliance both at a national and EU-wide level, necessitating that every online casino operator implements proper customer identity verification to avoid penalties and further regulatory action. It’s fair to say that these measures are stricter than any found in other markets worldwide.
Advertising Limits
In non-EU nations like the UK, there are advertising rules in place that prevent some forms of promotion for online casino services, although the marketing of iGaming is still a huge part of the landscape both on traditional broadcast networks and digitally. Conversely, nations on mainland Europe impose far tighter restrictions on how and where gambling businesses are able to advertise their wares.
Again, there are differences from country to country. Italy has a close-to-complete blackout on all gambling ads, whereas in Spain and Germany they’re allowed during specific periods of the day on public broadcast networks, and in France there’s a need for all marketing strategies to be pre-approved by the state regulator before they can be implemented.
In short, operating an online gambling business is certainly possible in Europe, but doing so requires more investment in compliance than in other parts of the world, and so presents a challenge.
