European Court Formulates Online Gambling Guidelines

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The recent European Parliament statement of intent on online gambling seems to have galvanized some action. This week there is news from the European Court of Justice (ECJ) and the European online gambling regulators meet.

The ECJ decision came in connection with the rejection by Austrian authorities of an advertising permit application submitted by a casino operated in Slovenia. The court ruled that a European Union (EU) Member State cannot prohibit gambling advertising from another Member State merely on grounds that the protection guaranteed in that Member State is not identical to the domestic rules. What is more important is that the ECJ provided clarifications on how Member States must address cross border gambling advertising.

The ECJ differentiated between levels of protection and exact rules. If an online casino from another Member State wants to advertise in a given Member state, then the level of protection against the risks of gaming in the Member State of the online casino must be equivalent to that in the Member State where the advertising is to be done. However the rules in both Member States need not be identical.

Despite the verdict of the ECJ, it is difficult to assess the levels of protection to consumers when the rules are fragmented. Such fragmented rules may be good for lawyers, but they are not in the interest of consumers. The European Gaming and Betting Association (EGBA) pointed out that this ruling again highlighted the need for harmonization of online gambling laws in EU States. The EGBA also stated that the Responsible Remote Gambling Measures set out by the European Committee for Standardization, which are followed by its members, surpass the requirements set out in national gambling legislations.

France, Italy, Portugal and Spain are four mainland European countries that have established a regulatory mechanism for online gambling. The regulators from these four countries met with a view to foster operational cooperation. In the meeting there was agreement on the shared objectives that included protecting consumers against fraud and criminal activities, preventing addiction, assuring the integrity of the game and fighting illegal gambling. In furtherance of these objectives a regulatory strategy was formed between the four countries for information exchange in the case of operators who are licensed in more than one jurisdiction, the fight against illegal operators and improved information on the protection of personal data. The regulators also discussed the possibility of a shared liquidity in certain games between the four countries. The regulators agreed to extend their cooperation to other European countries that espoused similar regulatory principles. The next meeting has been scheduled in Paris towards the end of the year, when strategies and discussions will move forward in greater detail.

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