The realm of online gambling within the European Union is a thriving and ever-evolving sector, boasting an estimated annual revenue of €22.2 billion in 2018 and an anticipated growth rate of 9.2% by 2020. Nevertheless, the regulation of this type of entertainment in the EU member states is characterized by a rich variety of regulations that sometimes contradict each other and sometimes conflict with each other. These disparities present a complex landscape that poses challenges for operators, consumers, and regulatory authorities alike.
This article endeavors to furnish an overview of the existing status of online gambling regulation in Europe, elucidating the distinct approaches taken by various countries. It also delves into the principal issues and emerging trends within this sector.
It’s noteworthy that there is no singular, overarching gambling law at the EU level; instead, the authority for this matter is delegated to individual member states. Consequently, each member state retains autonomy in designing and overseeing its online casino services, albeit contingent upon compliance with the foundational principles articulated in the Treaty on the Functioning of the European Union (TFEU), as construed by the Court of Justice of the European Union (CJEU).
The CJEU has formulated several basic rules that all member states must follow:
- Gambling-related services are considered economic activities under the TFEU and thus subject to its rules, unless compelling public interests require restrictions.
- Exercise a degree of discretion in formulating their policies and determining the degree of protection they offer to consumers and society. These determinations are influenced by the cultural, religious and social characteristics of each nation.
- Impose restrictions or prohibitions on casino gaming services in the interests of public policy, public safety, health or consumer protection, but such restrictions must be proportionate, necessary and appropriate to achieve the legitimate aims set.
- Discriminatory or protectionist measures that favor national operators or create unjustified obstacles to the free flow of services and trade are prohibited.
- Ensure effective supervision and enforcement of their national gambling regulations, cooperating with other Member States and stakeholders to prevent fraud, money laundering, match fixing and other illegal activities related to online gambling.
The European Commission lends its support to the endeavors of member states to modernize their domestic legislative frameworks for online gambling. Administrative cooperation between regulatory authorities and the enforcement of robust consumer and vulnerable group safeguards, including minors, are championed. In 2014, the Commission issued a Recommendation on Principles for the Protection of Consumers and Players of Online Gambling Services and the Prevention of Underage Gambling on the Internet. This document outlines several best practices for online gambling operators, encompassing transparency, age verification, self-exclusion tools, responsible gaming features, and equitable gaming operations, including random number generators, payout rates, and grievance redressal mechanisms.
The most recent report for 2020 discerns headway in bolstering consumer protection regulations for online gambling within EU member states; nevertheless, significant fragmentation and gaps still endure.
