European Gaming and Betting Association Responds to EU Green Pap

September 02, 2011 | News Category: Gaming Law

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One of the recent responses to the European Commission's Green Paper Initiative has come from the European Gaming and Betting Association.

The European Gaming and Betting Association has noted that it supports the idea that there should be a synchronized effort when it comes to a regulatory system for the 27 European Union member states. The association describes the current situation as the "present unsustainable legal uncertainty and fragmentation."

"With 45% of the global online gambling market Europe has a leadership position in a growing segment of the burgeoning online economy. Without a proper European policy response, this leadership will almost certainly be threatened," wrote Sigrid Ligne, the EGBA Secretary General.

The EGBA response stresses the importance of uniform and fair regulations in the European Union. The response also notes concern that a number of EU states have been starting their own legislations to regulate the online gambling industry for themselves. It is felt that this could adversely affect the online gaming industry in the EU, and that it clearly is against what has been agreed upon in the EU treaties.

If there is a uniform standard for all EU online gambling companies, there wuld be no need for online gambling operators to register in more than one location. The EGBA response notes: "Unnecessarily high regulatory costs act as a barrier to an attractive legal offer that can channel the consumer away from the black market and to the regulated operators. The proper application of basic EU Treaty rules would go a long way to address this issue."

The EU has issued many formal warnings when reviewing draft online gambling legislation that the member state in question has not complied with the laws of the European Union. However, the European Commission has not began any infringement proceedings since the year 2008.

The EGBA response asks the EU to act and pursue those states that have chosen to make their own legislation and have ignored the laws of the European Union. The report noted: "If the Commission continues to turn a blind eye to breaches of EU law, it is hard to see how any agreement will be reached on meaningful next steps after this consultation."

The response from the EGBA expresses the belief that the online gambling market will not affect the land based gambling market, since both markets will continue to grow in real terms. Important issues that should form part of the online gambling regulation are anti-money laundering, prevention of various crimes, customer identification, integrity of sports, and protection of minors to name but a few.