Although Europe is very much considered a “single state” in terms of economic significance, and is to some extent governed by legislation passed by the European Union, the individual countries are still ultimately responsible for passing their own laws. This is particularly true within the gambling industry since there’s no legislation or regulation that standardizes betting and gaming throughout Europe.
There is no sector-specific European Union (EU) legislation in the field of gambling services. EU countries are autonomous in the way they organise their gambling services, as long as they comply with the fundamental freedoms established under the Treaty on the Functioning of the European Union (TFEU), as interpreted by the Court of Justice of the European Union.
Most EU countries allow at least some games of chance to be offered on the Internet. Some countries allow all games, while others only allow certain types such as betting, poker or casino games. In some European jurisdictions, monopolistic regimes offering online gambling services have been established. These are run by a state-controlled public operator or by a private operator on the basis of an exclusive right.
However, a growing number of EU countries have established licensing systems that allow more than one operator to offer services on the market. Under European Union law, no particular system is favoured over the others.
Online gambling regulation in EU countries is characterised by diverse regulatory frameworks. In a number of judgements, the Court of Justice of the European Union (CJEU) has ruled on the compliance of national regulatory frameworks with EU law.
The Commission supports EU countries’ efforts to modernise their national online gambling legal frameworks, in particular in the framework of administrative cooperation between gambling regulatory authorities. It also provides support to ensure a high level of protection for consumers and vulnerable people, including minors.
United Kingdom
The United Kingdom Gambling Commission (UKGC) has been one of the strictest in gambling regulations within the EU. They have recently stated that UK gamblers spend 14.5 GBP per year and this figure is growing each year. One of the most controversial moves that they have made recently is to limit the amount that players can wager on fixed-odds betting terminals within bookmakers.
Previously players could wager up to 100 GBP per go at these terminals before the law change, it is now limited to a maximum of 2 GBP per wager. The move prompted William Hill, to close an estimated 700 shops of their own. They sighted the loss of profits caused by this new regulation as the reason for the closures nationwide.
However, the government has argued that such easy access to high stakes gambling was leading to widespread social issues amongst some of the poorest and most vulnerable groups in society. Many casinos and bookmakers, have been hit with large fines from the UKGC within the past few years. The regulator has taken steps against even the biggest names in the industry to stamp its authority on the market within the UK.
Perhaps most notable of the gambling companies sanctioned by the UK Gambling Commission is the Ladbrokes Coral Group. The commission ordered the operator to pay 5.9 million GBP for previous failures to abide by anti-money laundering regulations. It has also called out the company for failing to protect problem gamblers at both firms after thorough investigations of the group.
Germany
The gambling laws in Germany are somewhat complex, and have changed a few times over the years. In 2008 legislation was introduced that effectively banned all forms of online gaming and betting, with the exception of horse racing betting, other than those offered by the state. The European Gaming and Betting Association (EGBA) led a challenge to this legislation, claiming that it breached EU rules.
In 2010, it was ruled by the European Court of Justice that the industry was monopolized in Germany and had to become more liberal. As a result the Interstate Treat on Gambling (ISTG) was introduced in 2012 which allowed private companies to provide some gambling services. The ISTG was implemented in all German states but one, Schleswig Holstein, which passed its own legislation which was even more liberal.
This legislation was scrapped in 2013, by a newly elected government, but the licenses previously issued by Schleswig Holstein still have several years to run (until 2018). Many established operators hold one of these licenses as Germany is one of Europe’s biggest gambling markets.
Spain
Spain has amended its gambling laws several times in recent years. The most recent changes took effect in 2012, when operators could apply for licenses to operate in the region subject to certain conditions. Several companies were successfully awarded licenses by the Spanish National Gaming Commission and were able to operate accordingly.
At this time, it’s legal for Spanish residents to bet and play at any of the sites licensed in the country. Many of the biggest and best known brands, such as Bet365 and William Hill, have dedicated Spanish sites for betting, poker, and some other forms of gambling.
Belgium
Belgium has been among the toughest countries when it comes to the regulation of on and offline gambling. This has been highlighted recently with the decision from Nintendo not to release the iOS or Android version of Mario Kart Tour for download in the country.
The decision was taken as the game features the use of loot boxes when players are rewarded for their achievements in the app. Nintendo stated that the use of loot boxes does not comply with Belgian Gambling Authority regulations as they are seen to amount to gambling.
This is despite the fact that the feature in the game does not use any form of real-world currency. It just goes to highlight how tough the regulations are in Belgium.
This comes after the advertising of online casino games on television has been banned throughout Belgium as slots are seen as promoting gambling. Sports betting adverts are still allowed but are heavily restricted. Adverts for sportsbooks cannot be shown during live sports broadcasts though they are permitted before and during events.
Italy
Compared to many other European countries, the gambling laws in Italy are fairly liberal. In 2006, at a time when many other European Union members were introducing or increasing restrictions on gambling, Italy introduced legislation allowing companies to provide sports betting services in retail locations and over the Internet.
Several changes were made to this legislation, including one in 2011 which allowed licensees to provide poker and casino games to customers too. As a result, Italians have a wide choice of licensed sites they can join for several different forms of gambling.
This update to the Italian gambling laws has allowed online gambling companies to tap into this highly lucrative market. There’s a population of over 60 million people in Italy, making it the third-largest population in the EU.
Another boon to the Italian gambling market is the fact that Italian players are not taxed on their winnings. It is instead the operators who shoulder any tax burden through taxes on revenues as well as licensing fees.
Despite the increase in access to online and physical gambling spaces in Italy, there has been a clampdown on the advertising of gambling. Italy’s advertising and communications regulator Autorità per le Garanzie nelle Comunicazioni (AGCOM) has recently confirmed that direct and indirect advertising, sponsorship or promotional communications will all be banned across the country.
Netherlands
The state monopoly on online and land-based casinos is finally broken in the country. The Dutch gambling sector has received new legislations after the Remote Gaming Bill was adopted by the Senate at the end of February of last year.
According to the law, Holland Casino platform will no longer be the only one available for the players of the country because foreign operators will enter the market in 2020.
Starting from this year, operators will be able to obtain a gambling license in the Netherlands. However, high taxes (29 of the gross revenue) are going to be an obligation for operators. Furthermore, they will also be obliged to pay another 1.5% to fund the local regulator, as well as 0.5% to Support anti-gambling programs.
France
Many forms of gambling are legal in France, and there are three main bodies responsible for its regulation. The Pari Mutuel Urbain deals with horse racing, the Francaise des Jeux deals with betting games and lotteries, and ARJEL deals with online gambling. In 2009, the French government introduced a new legislative bill relating to online gambling, following requests from the European Union, and in 2010 three forms of online gambling were officially legalized.
They were sports betting (including live betting, fixed odds betting, and pool betting), horse racing betting (pool betting only) and poker. Licenses are issued by ARJEL to operators wishing to provide these services to French residents. At this time licenses aren’t issued for casino games, spread betting, or exchange betting.
Sweden
Sweden brought a new wave of laws which aimed to end the state-run online gambling company’s monopoly. The laws aimed to open up the market to private operators in the future and help to expand the gambling market in the country.
For many years the state-owned Svenska Spel was the only company permitted to offer online gambling to people in Sweden. This applied to all types of games, whether it be casino games, sports betting, or other forms of casino entertainment.
Despite the law, many gambling companies found a way around the regulations and by 2018 private companies had captured a 29% share of the Swedish gambling industry as a whole. At the time the country’s gambling industry was estimated to be worth a staggering USD 2.5 billion.
It is hoped that whilst the new regulations open up the Swedish market to new operators, it will also help to protect the public against any actions from the gambling companies.
Switzerland
There are two levels of gambling laws in Switzerland — federal and cantonal (state). Casino licenses are given through the Swiss Federal Casino Commission (ESBK). Lotteries and sports betting are managed through Comlot, the Swiss Lottery and Betting Board.
In 2018, the Money Gaming Act was passed to block the IP addresses of foreign gambling sites. This was done to force operators to pay their fair share of taxes. The law went into effect in January 2019 with a transitional phase allowing some sites and apps to remain accessible through June. As of the end of June, all unlicensed gambling options are blocked.
