skin

Online gaming, the jungle that harms Europe

15 January 2014 - 10:24

Ashley Fox, between all the members of European parliament, was the one who perhaps gave the greatest contribution on a subject that is increasingly the focus of the Community: online gaming and the need to set the “limits” that, of course, take into account national specificity (and prerogatives), as well as the difficulty of regulating a virtual phenomenon that escapes, almost by definition, to strict controls.

Written by Anna Maria Rengo
Online gaming, the jungle that harms Europe

Indeed  the non-legislative resolution on online gaming in the internal market is an initiative of the British Ashley Fox (ECR), and it was approved last 10 September with 572 votes in favor and 79 against. A milestone in the history of community commitment on gaming that was followed by the presentation, always by Fox and his colleague Giles Chichester, of a question to the European Commission where they turn again the spotlight on the current regulatory fragmentation at community level about online gaming, asking for a more coherent approach to also prevent a further loss of competitive advantage of the European Union.

What are, according to the member of European parliament, the most critical profiles of the current jungle of rules of the member States of European Union?

Online gambling is by its nature a cross-border activity and therefore needs cross-border rules. The fragmentation that currently exists in the European Union is a detriment to both industry and consumers. With large differences in the ways that Member States regulate online gaming, and the legal uncertainty that this generates, operators are struggling to expand their business across the EU. Simultaneously, consumers are not being offered a competitive, fair offer and therefore have the incentive to use unregulated gambling websites, with lower levels of consumer protection”.

There are countries where, according to you, the legislation is particularly lacking and where maybe it would give effect to infringement proceedings?

“There are a number of EU Member States whose national gambling policies are discriminatory or overly burdensome and it is important that the European Commission investigates whether these are in compliance with EU law. I therefore welcome the Commission’s commitment to make progress with its ongoing infringement proceedings and take enforcement action where necessary.”

How the European Commission can and must intervene? On what areas?

“In addition to making progress on the infringement proceedings, and ensuring compliance of national gambling laws with EU law, the European Commission can bring national regulators together to share best practice on licensing, consumer protection, and how to prevent match fixing and money laundering. Moreover the Commission can help to remove unnecessary administrative burdens for cross-border operators, with the ultimate goal being the creation of a single market for online gambling”.

How we can and must protect consumers from the dangers of online gaming at a community and national level?

Most consumers don't require protecting. They can make up their own minds about how they wish to spend their money. Minors must be prevented from exposure to all forms of gambling. Other vulnerable consumers would benefit from a pan-European self exclusion register. All consumers would benefit from cooperation amongst national regulators at EU level”.

According to your opinion, the potential of online gaming is sufficiently valued in Europe?

“I think there is an appreciation that online gambling has the potential to provide a greater contribution to the EU economy. A number of my MEP colleagues see this as a threat to consumers but it must be realised that consumers will seek out what they want, whether it is legal or illegal, so I would far rather that we had a safe, well regulated online gambling market in the EU than consumers be forced to turn to unsafe, unregulated websites in other jurisdictions”.

The is, on the contrary, an awareness of risks are they are sufficiently faced?

“I think that the risks associated with online gambling are taken very seriously at EU level, but it is better that consumers can access a fair and legal offer in the EU than be forced to turn to harmful websites”.

There is a real risk, as you stressed also in your question to the European commission, that the current situation represents a competitive advantage for United States, where in fact there is still no federal law on online gaming?

“The US is beginning to open up its market for online gambling and is mindful of the disadvantages stemming from the fragmented European regulatory framework. If European consumers cannot access competitive gaming in the EU, then they will turn to other jurisdictions with more competitive environments”.

Toward what other subjects, always concerning gaming but not necessarily online, the Parliament and the European Commission can and must intervene?

“In the European Parliament’s recent report on online gambling I called on the European Commission to explore the possibility of EU-wide interoperability between national self-exclusion registers, so that a consumer that self-excludes from one gambling operator can automatically be self-excluded from all operators in the EU. I hope the Commission gives this serious consideration”.

Related articles