European Parliament divided over online gambling regulation
The European Parliament has so far not managed to reach a consensus over how the developing online gambling industry should be regulated in the EU. According to a report approved by Parliament's Internal Market Committee, online gambling should remain...
The European Parliament has so far not managed to reach a consensus over how the developing online gambling industry should be regulated in the EU. According to a report approved by Parliament's Internal Market Committee, online gambling should remain a matter under national control because the member states are better able to regulate the industry than the EU.
However, a number of MEPs in the same committee, headed by British Conservative MEP Malcolm Harbour, do not agree and are suggesting that, as online gambling is just another business, it should be subjected to the EU rules governing the internal market.
Mr Harbour has already said that he will be tabling a "minority opinion" when the report is voted upon in plenary next month.
The report - approved by the Committee with a large majority - calls upon the EU Council, representing member states, to seek a "potential political solution" to the problems of online and traditional betting.
According to the Committee, proper studies could identify action to be taken by member states in order to solve the social and public order problems arising from cross-border online gambling such as gambling addiction and misuse of personal data or credit cards. The Committee said that joint measures could be envisaged to tackle risks related to illegal behaviour and match fixings.
The committee report also backs the development of standards for online gambling as regards age limits, a ban on credit and other measures and information to protect vulnerable gamblers, such as children and gambling addicts.
MEPs are also insisting that practical solutions should also be examined for limiting the danger of bettering large sums of money suggesting that a maximum amount per month that a person can spend on gambling could be laid down or that online gambling operators could be obliged to make use of pre-paid cards that would be sold in shops.
On the other hand, the counter opinion to be tabled by Mr Harbour includes a number of amendments putting the emphasis on compliance with Internal Market rules and judgments of the European Court of Justice. According to the minority opinion, the dangers of online gambling, especially the consequences for consumers such as addiction are unproven.
Malta is closely following this report as, together with Britain, is considered to be one of the most influential EU member states when it comes to the online betting industry with many international betting companies setting up shop in Malta over the past years.
Gambling and the issue of regulation have developed into a contentious one in the EU over the past years and the European Commission has until now no competence over gambling. Regulation is done at member state level, and although considered to be illegal, many member states are still protecting their markets by trying to prevent "foreign" companies into their market. This has now become increasingly difficult with the online industry.
A European Court of Justice (ECJ) decision in 2007, known as the Gambelli case, changed the scenario as according to the Luxembourg-based court, EU gambling and betting companies operating in one member state could offer their services in the other member states. Despite this judgment, many EU governments are still trying to restrict access to their national markets, forcing the European Commission to initiate infringement procedures. The European Parliament report is considered to be another attempt to push forward a clear EU policy on the online gambling industry.
However, a number of MEPs in the same committee, headed by British Conservative MEP Malcolm Harbour, do not agree and are suggesting that, as online gambling is just another business, it should be subjected to the EU rules governing the internal market.
Mr Harbour has already said that he will be tabling a "minority opinion" when the report is voted upon in plenary next month.
The report - approved by the Committee with a large majority - calls upon the EU Council, representing member states, to seek a "potential political solution" to the problems of online and traditional betting.
According to the Committee, proper studies could identify action to be taken by member states in order to solve the social and public order problems arising from cross-border online gambling such as gambling addiction and misuse of personal data or credit cards. The Committee said that joint measures could be envisaged to tackle risks related to illegal behaviour and match fixings.
The committee report also backs the development of standards for online gambling as regards age limits, a ban on credit and other measures and information to protect vulnerable gamblers, such as children and gambling addicts.
MEPs are also insisting that practical solutions should also be examined for limiting the danger of bettering large sums of money suggesting that a maximum amount per month that a person can spend on gambling could be laid down or that online gambling operators could be obliged to make use of pre-paid cards that would be sold in shops.
On the other hand, the counter opinion to be tabled by Mr Harbour includes a number of amendments putting the emphasis on compliance with Internal Market rules and judgments of the European Court of Justice. According to the minority opinion, the dangers of online gambling, especially the consequences for consumers such as addiction are unproven.
Malta is closely following this report as, together with Britain, is considered to be one of the most influential EU member states when it comes to the online betting industry with many international betting companies setting up shop in Malta over the past years.
Gambling and the issue of regulation have developed into a contentious one in the EU over the past years and the European Commission has until now no competence over gambling. Regulation is done at member state level, and although considered to be illegal, many member states are still protecting their markets by trying to prevent "foreign" companies into their market. This has now become increasingly difficult with the online industry.
A European Court of Justice (ECJ) decision in 2007, known as the Gambelli case, changed the scenario as according to the Luxembourg-based court, EU gambling and betting companies operating in one member state could offer their services in the other member states. Despite this judgment, many EU governments are still trying to restrict access to their national markets, forcing the European Commission to initiate infringement procedures. The European Parliament report is considered to be another attempt to push forward a clear EU policy on the online gambling industry.