Cross-Border Regulation Of The Online Gambling Industry for Europe?

Several Members of the European Parliament are urging Michael Barnier, the Internal Market Commissioner, to establish legislative rules for the online gambling industry in Europe, with the hope of allowing for cross-border regulation.

 

A debate held on February 11 was used as a platform for several MEPs to voice their concerns about the effects of the gambling industry about certain at risk populations, such as minors and people with a gambling addiction. Additionally, the MEPs also highlighted the problem of online gambling sites targeted for money laundering purpose.

 

The European gambling industry is estimated to be worth a massive €70 billion to the European market and many online gambling operators are keen to tap into the huge potential of the European market. This has led to tensions across Europe with the European Court of Justice ruling which has maintained that online gambling regulation is the remit of the particular nation involved.

 

The current confusion within the online gambling community concerning regulating bodies is largely due to the tensions between the rights of nations to regulate their own online gambling operations and the European Union’s internal economic market.

 

Within Europe, several countries have already attempted to place bans on cross-border online gambling which led to proceedings being taken against them by the European Commission for breaking the EU’s internal market regulation. There are currently no formal legislations regarding online gambling across the EU, although a recent decision by the court to uphold Portugal’s right to ban a Gibraltar based online gambling company from operations involving Portuguese nationals has clearly added to the confusion.

 

The confusion that is permeating the online gambling industry is certainly indicative of a need to regulate the online gambling market.

 

Michael Barnier argued during the debate that a new approach is necessary to deal effectively with the issues that are currently affecting the online gambling industry in Europe and has promised a Green paper to be formulated before the end of 2010 detailing the best possible options for a European policy on online gambling.

 

The debate on the 11^th of February came about in response to questions forwarded by five MEPs, headed by the Chair of the Internal Market Committee, Malcolm Harbour. He said during the debate that "it is absolutely the right time for the Commission to be coming out with a clear strategy". And qualified this sentiment by adding that online betting "can be regulated and must be regulated".

 

Nonetheless, Mr. Harbour was keen to highlight the necessity of the right of individuals to make their own decisions saying "We must also respect our citizens and the fact that many of them want to access online gambling", thus, "it can't be right to ban online gambling with a company from outside your own country".

 

Another issue that needs addressing is whether the EU should be able to force an open market, concerning online gambling.

An employee from the European People’s Party, Andreas Schwab, has argued a need for "uniform cross-border solutions at the European level". In addition, Evelyne Gebhardt, a German Socialist has called up on the European Commission to halt its current trend on the infringement of correct procedures, arguing, "Member states should not be forced to open market up if their controls are strong and effective and we want the Commission to finally understand this".   

 

Other MEPs voiced concerns about the possible impact of gambling on the general health of those who choose to gamble.

 

The Dutch MEP, Dennis De Jong, told the House that he believed "we should limit online gambling as much as possible and we should ask the Commission not to lower the level of protection".

 

Moreover, taking the chair at the end of the debate, Mr. Barnier added his opinion saying: "make no mistake; I have come to talk about a new approach”, and continued on with; "these are not services just like any other. Fighting cross-border crime without a European approach is impossible. We have to have strict limits so that minors can't play and on this we need EU coordination".

 

What are you views on the subject of cross-border regulations of the online gambling industry in Europe, feel free to discuss the issue on our forum.

Copyright © www.online-casinos.co.uk, 2009. All Rights Reserved.