EU Lawmakers Urge Governments, EC to Show More Leadership in Online Gambling Issues
The European Commission and Council should take more responsibility for tackling Internet gambling problems, the European Parliament said Tuesday. It overwhelmingly approved a non-binding resolution (http://bit.ly/1d2ai8p) responding to an EC action plan proposed in October (WID Oct 24/12 p3). Gambling trade associations generally applauded the resolution, with some caveats. The EC is expected to decide what to do about online gambling before its term ends next year, said European Gaming and Betting Association Secretary General Maarten Haijer.
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The parliamentary report, by Ashley Fox, of the European Conservatives and Reformists and the U.K., addresses: (1) The nature of the sector and consumer protection. (2) Compliance with EU law. (3) Administrative cooperation. (4) Money laundering. (5) The integrity of sports.
Lawmakers warned that “gambling can lead to dangerous addiction” and urged the EC and EU governments to ensure that gambling services and offerings are legal, and to closely monitor levels of addiction. There should be a clear distinction between gambling activities and other kinds of online entertainment, with the former respecting age and identity verification mechanisms, they said. They asked the EC to consider compulsory third-party identification control to keep minors or people using fake identities from playing, and said software used for Internet gambling services should be made more secure and subject to common minimum certification requirements.
Common standards for online gambling should address the rights and obligations of service providers and consumers, the report said. It recommended the introduction of uniform, pan-European common security standards for e-identification and cross-border e-verification services. Lawmakers asked national governments and operators to encourage responsible advertising and more awareness-raising of the risks of gambling.
Regarding compliance with EU law, the resolution stressed that online gambling providers should respect national laws and that governments should retain the right to impose restrictions they deem necessary and justified to address illegal online gambling. The report recognized that EU members have the right to determine how gambling services are organized and regulated, and to enforce measures they consider necessary against illegal services. However, it said more coherent EU policies are needed to deal with the cross-border nature of online gambling. The report also said the EC should keep monitoring and enforcing compliance of national laws and practices with EU law.
Lawmakers want a more standardized system for identifying players, enforcing laws against illegal operators, boosting consumer protection, ensuring responsible ads and creating black and white lists, they said. They recommended more safeguards against money laundering, and said “solid registration and unambiguous verification systems are key tools in preventing any misuse of online gambling, such as money laundering.” The resolution called for better cooperation among all stakeholders against match-fixing and other corrupt activities.
The vote, on the third report on gambling undertaken by the current Parliament, “highlights once more the growing interest of the EU to take action and responsibility in this area,” Haijer said in a news release. Although the resolution doesn’t seek harmonization of the sector, it backs new EU action in areas such a customer e-verification and improved cross-border cooperation, he said. Those initiatives are critical to streamline identification procedures, simplify licensing and cut unnecessary red tape for cross-border operators, he said. The vote also confirms European Parliament support for the EC to finally start proceedings against EU countries that continue to breach EU law, he said.
Parliament wants to keep member countries in the driver’s seat, said the European Lotteries Association. It applauded legislators’ support for the EC stance against harmonization of the sector. The vote shows lawmakers understand that “gambling is not an ordinary economic activity,” said EL President Friedrich Stickler.
The Remote Gambling Association said the report has some positive elements for licensed private online gambling operators. But the document “appears to have been unduly influenced by those members of the Internal Market and Consumer Protection Committee who are opposed to the opening of markets to licensed private sector online gambling companies,” said the RGA. It said the resolution repeats “flawed consumer protection arguments to justify the retention of barriers to market entry.” Although “we are dubious about some of the measures,” the RGA hopes it will put more pressure on the EC to act against non-compliant countries, said CEO Clive Hawkswood. Many major infringements of EU law have been outstanding for five years, and “we cannot believe” that Internal Market and Services Commissioner Michel Barnier won’t “rectify the situation before he leaves the Commission in 2014,” said Hawkswood.
Barnier made enforcement against administrations that continue to flout EU law a key point of the action plan, Haijer told us by email. “We understand that the assessment process in the Commission is ongoing and expect decisions to be taken before the end of the Commission mandate.”