Interesting Stats Coming Out of EC's Green Paper Consultation

May 12, 2011 | News Category: Gaming Law

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Although the European Commission's Green Paper is not yet ready for publication, some interesting statistics have already been shared regarding the regulation of Internet gambling in the European Union.

To begin with it is well known that is particularly difficult to control an industry such as online gambling in a specific geographical area that encompasses a number of countries. Essentially, it is as if there are no borders. It has been found that there are 14,823 active online gambling websites available for use throughout Europe. Somewhat disturbing for the European Commission is the fact that 85% of these online gambling sites do not hold the national licenses of the countries from which they operate.

There has been the argument that because online gambling is a service-based industry that would mean it should not be blocked by national blocking laws, and should be available to all other member states as long as the operator holds a license for one of the other member states. However, if the sites do not hold the national licenses of any EU member state, this would pose a serious problem for the European Union.

A number of online gambling companies have spent substantial sums of money in order to legally fight to have the national barriers taken away by those states that have online gambling monopolies. Some of these cases have even reached the European Court of Justice.

There has been some liberalization of the online gambling markets in the European Union. This liberalization has come after pressure from the European Commission to have the EU countries conform to the free market rules. Because the online gambling industry is particularly lucrative, it is understandable that the EU member states would each prefer to keep their online gambling income close to home, rather than allow their residents to put funds in the coffers of another EU country.

Those who object to the single online gambling market are able to share their objections with the European Commission during the time of the Green Paper consultation. The European Commission has clearly stated that they plan to look into the issues and the objections raised with an "open mind."

There are many that feel that the only way to successfully form a single online gambling market is to find a way to get the member states to cooperate, rather than force them to comply. It has already been seen that those member states that agreed to open up their online gambling markets have found ways, such as high taxation, that will make it difficult for outside online gambling companies to operate in their countries.