Online gaming: council insists single market principle must be respected
The Malta Remote Gaming Council (MRGC) has insisted that online gaming licences issued by EU member states are not illegal in other EU countries and, therefore, no EU member can stop cross border gaming services based in another EU jurisdiction.
The council said this principle had been reaffirmed in the European Court's BWIN/LIGA vs. Santa Casa ruling.
"Yet rulings such as this are being repeatedly ignored by these same jurisdictions, which are continuing to refer to legal licences issued in other Member States as being illegal. These accusations are frivolous and unfounded, moreover, most of the Member States that are making these claims have infringement procedures against them and therefore are themselves not conforming to EU laws or treaties," the council said.
It explained that Maltese licence holders are subject to strict anti-money laundering procedures before being granted a licence. They are required to comply with a number of measures including responsible gaming and player protection measures superior to those implemented by most monopolies, stringent Know your Customer (KYC) and Anti-Money Laundering (AML) procedures, and an advertising code of conduct. They are also subject to rigorous monitoring and controls by the regulator.
"The EU was set up as an economic zone for the benefit of all its members. MRGC believes that if barriers start going up and protectionism sets in, the EU will have failed to achieve its objectives," the council said.
It also asked who would be held responsible for any potential losses incurred due to these unfounded accusations.
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Adrian Vella
Oct 21st 2009, 11:03
@ Peter Korsten
Who made you God? You have no idea what you are talking about. Malta has one of the most stringent online gaming regulations and these regulation are enforcecd by the LGA. Online Gaming Companies are coming to Malta because they are prepared to be regulated. The ECJ was very unfair when they said that a private monopoly is better able to regulate than a Government Authority which has absolutely no conflict of interest.
victor caruana
Oct 21st 2009, 08:44
to Hypocrites:
we resist the adoption of universal eu divorce legislation insisting on our choice irrispective of what others do.
now we want others to accept cross border gambling. just because it suits us.
John Pace
Oct 20th 2009, 22:54
@ Peter Korsten
I am not in favour of online gaming nor trying to defend the MRGC, but
what I cannot understand is why many EU countries are saying that licences granted
in Malta for example are illegal when in their own country online gaming in their
own countries is rampant.
The only answer I can find is that they are protected their MONOPOLIES.
The reason.......TAXES whcih otherwise would go to other jurisdictions.
Peter Korsten
Oct 20th 2009, 21:43
It's not that simple, is it? The issue with web sites is that opinions differ where the actual gambling takes place. The MRGC will assert that since the servers are located in Malta, the gambling takes place in Malta. But if it's delivered into someone's home, can you honestly claim that the gambling is not taking place on your own computer?
I don't think so. For the gambler, it's irrelevant where the server is located, whether it's in his neighbours house, on the other side of the EU, or somewhere in China. For the gambler, the gambling takes place on his computer display.
Just because there is no EU guideline concerning cross-border services via web sites, doesn't mean that it's a free-for-all. In fact, just because there's no EU guideline, it's up to the local judiciary to decide, and that's exactly what is happening now.
In short, the MRGC have no leg to stand on.