Division in Europe over Regulation of Online Gambling

Dominating the gambling news for much of 2009, the United States has been active in framing legislation for regulating the online gaming industry.  During this time, the European Union has been split, with some member countries moving towards greater acceptance of online gaming while others have actually moved to eliminate it.  It is difficult to imagine such a dichotomy in the EU and the developments have landed a setback for online gaming and the gambling industry in general.

At the forefront of the countries that are lenient towards gambling are Denmark and the United Kingdom.  These two countries have been open-minded about gambling in all forms, with both writing progressive gambling legislation; in fact, the United Kingdom has even been working to capitalize on the surge in online gaming by increasing the tax rates on online operators.  Denmark has also been quite favorable towards gambling, writing new laws that have been friendly to the gaming business.

Permissive, but far less favorable have been the laws enacted by France.  These laws have clauses which require potential operators to meet stringent guidelines in order to obtain licenses.  France assumes jurisdiction over these operators and by extension, places the businesses under French taxation laws as well.  These new regulations have one notable loophole, however, with two existing French operators being exempt from the new laws, inciting cries from critics as anti-competitive and protectionist.

Several other countries, such as Italy, Spain and Germany, have experienced revenue losses over the last couple years and substantially have not changed gaming laws.  The conventional thinking in these countries is that any further restrictions on the industries would only serve to further diminish tax dollars, a consequence which they can ill afford.

Poland has become the most oppressive regarding online gaming, and gambling in general.  Embarrassed by a bribery scandal in the gambling industry, the country has tightened its gambling laws to only allow games in government sanctioned casinos.  In addition to eliminating online gambling, this has forced the removal of 50,000 slot machines from bars, restaurants, gas stations and other venues.  Consensus is that this tightening will lead to further restrictions for online gaming in the country and the businesses that conduct it.

This diversity of regulations throughout the European Union would suggest less unity than the organization’s name would suggest.  International businesses have always presented regulatory problems as countries joust for jurisdictional control and precious tax revenue.  As the United States struggles with legislation of its own, the European Union allies on the other side of the Atlantic continue to be divided over differing legislation in gambling.  It is certain that as these decisions and laws develop, the online gaming industry will keep an eye on these developments.