EU shifts stance on online gambling and children protection

EU Member States should be free to maintain their own rules on online gambling, MEPs stress. However, due to the cross-border nature of this activity there is a clear added value to be gained by an EU-wide coordinated approach in some areas, notably the fight against illegal gambling and protecting children and vulnerable adults from addictions.

This is a definite shift away from the previous stance of supporting the status quo and allowing online gambling law to be decided at national level and includes a move towards a framework directive, formal cooperation between national regulators and more consistent use of infringement procedures by the European commission.

About 10% of all gambling in Europe, with a market volume in excess of 10 billion euros, is done on the internet, via mobile phones or interactive platforms and the market is growing. The non-legislative resolution by Jürgen Creutzmann (ALDE, DE) sets out Parliaments position on the Commission Green Paper of March 2011.

Gambling licence for operators
To fight the black market, the resolution suggests that Member States should introduce a licensing model to provide security for gamblers and ensure that gambling providers meet the criteria imposed by the host Member State. MEPs also call on the Commission to examine the possibility of blocking financial transactions between banks or credit card issuers and blacklisted gambling providers.

Protecting minors and preventing addictions
Online gambling may involve a greater risk of addiction than other kinds, due to easy access and the absence of social control, the resolution notes. It emphasises that in order to protect especially vulnerable and young players, controls such as age verification and restrictions for electronic payment need to be in place before any gaming activity begins.

To protect children and vulnerable adults, MEPs also call on the Commission to explore common standards for operators or a framework directive and say that a European code of conduct for online gambling could be a first step.

The resolution was approved by a show of hands.

Sigrid Ligné, Secretary General of the EGBA welcomed the report saying, “This vote constitutes a very welcome shift in the position of the European Parliament. Time is of the essence given that it is precisely now that Member States are pushing ahead and reregulating their national online gambling markets.

“Today the Commission has received political support to initiate EU actions. But any EU level action can take years to be adopted and this cannot be a pretext for inaction against Member States that infringe EU law. As the guardian of the Treaties, the Commission must act to curb further fragmentation of the Internal Market by consistently declaring protectionist national regimes to be incompatible with EU law.”

A number of EU countries are currently in the process of following France and Italy in regulating their online gambling markets including Denmark, Spain and Germany.