Brussels plans to protect the young over online gambling

Rules on the social aspects of the growing online gaming industry will soon be proposed by the European Commission leaving untouched Malta’s choice of a more liberal regulatory approach.

The Commission planned to submit proposals next year to establish common minimum standards to protect EU citizens, particularly youngsters, from illegal activities and addiction,European Internal Market Commissioner Michel Barnier said.

He stressed that new standards would not delve into the industry’s licensing and regulatory aspects – something closely guarded by Malta and other member states, like the UK – and this would remain entirely in the remit of individual members.

Malta has seen its online gambling industry flourish with hundreds of companies relocating their activities to the island, leaving millions of euros in its coffers in the form of taxes from gamblers placing bets across the EU.

The industry has also generated hundreds of highly-paid jobs in Malta.

The island has so far managed to resist attempts by monopolistic member states wanting to block online gambling companies based in Malta from operating in other European jurisdictions. Although these member states have been calling for common and specific EU rules to regulate the sector, the Commission preferred Malta’s approach to respect the principle of subsidiarity and allow the general internal market rules to regulate the business.

Mr Barnier reiterated this stand while admitting that the industry needed some form of rules. “My intention is to present proposals by the middle of next year to have in place minimum standards of protection to guarantee that EU citizens are not exposed to abuse, particularly by the underground industry,” he told MEPs.

“I will also be convening a meeting of national regulators because there is ample evidence that these are not coordinating their efforts to protect EU consumers.”

MEPs approved, with an overwhelming majority, a resolution on the subject urging the Commission to come up with proposals to protect its citizens against online gaming.

Its rapporteur, German MEP Jurgen Creutzmann urged Brussels to act fast.

“With this clear backing, the Parliament sends a strong signal to the Commission and the member states,”

According to Mr Cruetzmann, common quality standards for national licensing models would represent a significant step towards more transparency, fair competition and legal certainty.

Malta is considered to have one of the most modern regulatory regimes in this sector among the 27 member states.