Members of the European Economic and Social Committee have voted strongly in favour of the opinion setting out its views on the future of online gambling. The rapporteur responsible for the drafting of the opinion was Maltese member Stefano Mallia.
An estimated 85 per cent of those involved in online gambling are considered to be black market operators
The European Economic and Social Committee represents European civil society, employers and employees and was established in 1957 as a forum to discuss issues regarding the single market. It gives Europe’s interest groups – such as trade unionists, employers and farmers – a formal say on EU legislative proposals.
Of the 134 votes cast only four were against and another four were abstentions. Henri Malosse, president of the employers group within the EESC said: “The strong vote was testimony of the hard work put in by the rapporteur and the high quality of the opinion presented. Stefano was capable of taking on board the various views of the many stakeholders that have a strong interest in the sector.” The report, which will now be formally submitted to the European Commission, Council and Parliament, acknowledges that online gambling is currently facing legal uncertainty because of the fact that there is no common EU legislation regulating the sector. Following a number of European Court of Justice rulings it is currently up to the individual member states to decide how to regulate the sector in their individual national markets. This is resulting in a diversity of systems ranging from monopolies, to the issuing of national licences to an outright ban on online gambling.
The report also states that the market is very heavily characterised by illegal operators where an estimated 85 per cent of those involved in online gambling are considered to be black market operators. These operators are offering their services without any kind of licence or regulation thus leaving consumers heavily exposed to fraud and ID theft. These same illegal operators are also identified as the source of money laundering and match fixing.
While noting the lack of data and cooperation between member states, the report puts forward a number of recommendations for action at EU level. Chief amongst these is the call for the setting up of an EU-wide framework of consumer legislation whereby a minimum (not low) set of consumer protection standards which would include the setting of age limits for access to any games of chance or gambling activities and a ban on the use of credit would be implemented. National governments would however still have the right to set higher standards of consumer protection for their national markets if they so wish.
Other proposals include the setting up of a formalised structure of cooperation between member states at EU level, the mandatory inclusion of an interactive label on the front end of each site, a stepping up in the fight against match fixing and a strict regulation of advertising by online gambling operators.
Commenting after the vote, Stefano Mallia said: “I am very satisfied with the final result not only in terms of the vote but more importantly in terms of the quality of the opinion. Over the past three weeks various members have approached me with suggested amendments to the opinion, which amendments clearly reflected a certain point of view or particular interest.
“A lot of discussion to reach a compromise on the proposed amendments took place and in most cases agreement was reached.
“I trust and hope that what we have produced will have an impact on both the Commission and more urgently on the European Parliament which is currently discussing its own report”.
The European Parliament is expected to vote on its own opinion at the end of this month.