Focus on the European Union

EASG, Helsinki, 10 September 2014

Harrie Temmink Deputy Head of Unit, DG Internal Market and Services, Unit Online and Postal Services (E3)

17/09/2014

Evolving environment online gambling in the EU

• Online gambling is a fast developing market diverse remote distribution channels and new forms of gambling

services

€ 13 billion annual revenues expected in 2015, apprx. 15% overall EU gambling market

• Consumers and citizens use or are exposed to gambling services around 7 million consumers participating in online gambling in the EU

jurisdiction issue: gambling sites accessible outside national control

Legal developments

• Member States are regulating their online gambling markets in view of:

Public interest objectives

Channelling citizens from illegal to legal gambling sites

• Complaints and lack of legal clarity

Significant number of pending investigations and complaints

• Court of Justice EU

"Preliminary" rulings – more than 20 judgements

Member States may set the policy objectives and the level of protection sought but national regulatory frameworks have to comply with EU law

Basic principles: consistency of national gambling policy, transparency, no discrimination

Communication "Towards a comprehensive European Framework for Online Gambling"

• Communication (and Staff Working Document) adopted on 23 October 2012

• Based on a broad public consultation (2011)

• Contains an action plan with 5 priority areas

• No legislative sector-specific proposals

• A mix of initiatives covering a range of issues & evidence based

5 Key Action Areas

• Compliance of national regulatory frameworks with EU law

• Enhancing administrative cooperation and efficient enforcement of national law

• Protecting consumers and citizens, minors and vulnerable groups – Recommendation consumer protection/commercial communications

• Preventing fraud and money laundering – Explore EU standard on gambling equipment

• Safeguarding the integrity of sports and preventing match-fixing

1. Compliance of national regulatory frameworks with EU law

• Basic principles EU law

• Case-law Court of Justice EU

• Specific requirements monopolies, licensing

system

• Compliance policy European Commission:

• Procedures

• State of play

2. Enhancing administrative cooperation and efficient enforcement

• Relevance of competent regulatory authorities

• Importance of enhanced cooperation to meet regulatory challenges

Selected actions:

• Facilitate administrative cooperation • Expert group on gambling services established on 5 December 2012

• Seven meetings since then

• Explore the benefits and limits of responsive enforcement measures

3. Protecting consumers and citizens

Action:

• Commission Recommendation: consumer protection & responsible

advertising (adopted on 14 July 2014, see next slides)

• Support benchmarking and testing of parental control tools

• Research on kinds of gambling disorders • Behavioural study effectiveness online gambling consumer measures

• ALICE RAP (7th Framework Programme Research EU)

• Assess online gambling market performance under Consumer Market

Monitoring Survey

Why common EU rules to protect consumers, players and minors in the online gambling sector?

• Increasing exposure citizens to online gambling

opportunities

• Normally recreational activity but risks of gambling disorders and dependence: 0.2-3% adult population

• In EU divergent legislation and practices: several

Member States reviewing legal frameworks on online gambling services

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A Commission Recommendation?

• Does not interfere with the right of Member States to set out their national gambling policies

• Is based on "good practices" in the Member States and has been elaborated with experts of the Member States, sector representatives and experts in gambling addiction

• Principles are not binding but should act as a catalyst for the development of consistent principles to be applied throughout the European Union

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What are the main elements of the recommendation (I)?

• Information requirements

• on the gambling website

• on commerical communication • including operator details and responsible gambling message

• Preventing minors from gambling

• Age verification

• Encouraging display of links to parental control programmes

• Consideration of minors as a main audience in commercial communication – media (broadcast, print media), websites, physical premises

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What are the main elements of the recommendation (II)?

• Commercial Communciation

• Should not make unfounded statements about winnings, portray gambling as socially attractive, suggest gambling as alternative to employment

• Should not exert presure to gamble, target vulnerable players, suggest it is required to resolve social or other problems, portray gambling as indispensable

• Corresponding rules for play-for-fun games as play-for-money games

• Sponsorship

• Protection of minors

• Identification of sponsor

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What are the main elements of the recommendation (III)?

• Player registration and account

• Registration process, including verification of identification and temporary account

• Protection of player funds

• Player activity and support

• Limit setting, including adjustment of upper/lower limits (by default!)

• Availability of player support function

• Availability of information alerts (by default!)

• Time out and self-exclusion possibilities

• Closure and re-opening of accounts

• Self-exclusion registries

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4. Preventing fraud and money laundering

• A main public order objective of Member States

• Credit card fraud and theft of banking credentials – most common

Action:

• Extend Anti-Money Laundering Directive to all forms of gambling • Commission proposal to revise the AMLD adopted on 5 February 2013

• State of play

• Assess need for specific measures tackling identity theft

• Explore EU standard on gambling equipment

• Urge Member States training of the judiciary on fraud and money-

laundering gambling-related issues

5. Safeguarding sport integrity and preventing match-fixing

• Betting-related match fixing : a particularly challenging type of fraud

• Strong concerted efforts needed - limited cooperation currently exists

• Regulatory and self-regulatory mechanisms in the EU

Action:

• Recommendation on best practices to prevent and combat betting

related match fixing

• Commission participation in Council of Europe Convention on the

Manipulation of Sports Competitions (9 July 2014)

• Promote international cooperation and dialogue

• Member States urged to set up contact points, equip national systems

and consider sustainable financing for sport integrity

Thank you

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