Online gambling: protecting consumers, players and children

Thisfacility is designed to protect consumers from fraudulent use of their creditcard, but can also be used to try to get back any losses they may have occurredwhile gambling. When it comes to cyber-attacks against gambling operators’infrastructure, their frequency and risk is not considered higher than in anyother industry sector. A main aim of regulating authorities shouldbe to provide the parameters for advertising and promotion messages or imagesthat authorised operators are to comply with. These can compriseprovisions to the effect that advertising shall not imply that gambling allowsfor social acceptance, that it shall not play on thesusceptibilities of the vulnerable, in particularminors or young adults and that it shall not be portrayed as means to solvefinancial or other problems. Under-age and vulnerable groups must bespecifically protected and in no manner enticed to gamble, whilst images usedshould not portray persons which look below the age limit or within the minimumage limit threshold. Further, operators should not engage directly orindirectly in unsolicited mail, including to persons who have self-excludedthemselves from a site.

In Germany, iGaming is regulated under the Interstate Treaty on Gambling (Glücksspielstaatsvertrag). The treaty, which came into force in July 2021, allows for the licensing of online casino games, poker, and sports betting. Operators must obtain licenses from the new national regulatory authority, Glücksspielbehörde, and adhere to strict rules regarding advertising, player protection, and Responsible Gaming. The need to protect consumers,including minors and vulnerable groups, from potentially developing a gamblingproblem is invoked by Member States in restricting or limiting the offer ofonline gambling or the types of games and bets that may be offered. To adequately protect consumers allregulatory frameworks need to embrace these types of safeguards, withauthorised operators incorporating these in the responsible business conductthat they pursue and as part of their authorisation requirements. A regulatingauthority should responsibly carry out checks and controls on operators as anintrinsic part of post-licensing monitoring to ensure the protection ofconsumers.

Risk of Fraudulent Online Gambling Platforms

The development of an attractive range of legal gamblingopportunities is also key to effectively prevent consumers from going onunregulated sites. Therefore, action at EU level should aim at adequatelyprotecting all citizens in Europe within a balanced regulated environment. Inlight of this, the Commission proposes to undertake action, together with theMember States, designed to offer a common and high level of protection to allEuropean consumers and citizens, including minors and vulnerable groups. Theseproposed actions seek to address the risks emanating from unregulated marketsand organised crime, such as fraud and rigging of events. Europe is home to one of the world’s largest and most diverse online gambling markets, with millions of players participating in sports betting, poker, casino games, and more. However, unlike other industries that follow a unified European Union (EU) regulatory framework, online gambling is regulated independently by each country.

• Some MemberStates accept proof and documents demonstrating compliance with domesticlicensing requirements.
• Therefore, national systems of financingare also linked to Member States’ ambition to safeguard the revenues for theactivities these are distributed to.
• It is appropriate to better inform consumers and players about online gambling services which, consistently with Union law, are not allowed according to the law of the Member State where the online gambling service is received and also to act against such services.
• If the casino fails to pay substantial winnings despite meeting all withdrawal requirements, this may warrant legal action.
• The network seeks to tacklebreaches of consumer law in areas such as misleading advertising and distanceselling.

The EFTA Court has also establishedcase-law with respect to the fundamental freedoms of the internal market in thearea of gambling. The Unfair Contract Terms Directive23 aims toprotect European consumers against unfair terms in the contracts they concludewith professionals. It introduces a notion of “good faith” in orderto prevent significant imbalances in the rights and obligations of consumers onthe one hand and sellers and suppliers on the other hand. This generalrequirement is supplemented by a list of examples of terms that may be regardedas unfair. The Directive also requires contract terms to be drafted in plainand intelligible language and states that ambiguities will be interpreted infavour of consumers.

The objective is toprovide Member States with the parameters to undertake adequate protectionmeasures, including therefore sanctions for non-compliance or for knowing orrepeated breaches which in themselves are an incentive for operators to abide bythem. The Recommendation will be drawn up with the expertise ofindustry and discussed with the authorities in the expert group on gamblingthat is being established. The fast pace of online technologiesdevelopment in recent years has facilitated the provision of gambling servicesthrough diverse remote distribution channels. These include the internet andother means of electronic or distance communication such as mobile phonetechnology or digital TV.

Invest in ongoing training programs to update staff on regulatory changes and ensure compliance awareness at all levels. Nurture proactive relationships with local regulatory bodies to anticipate changes and swiftly address compliance issues. Develop bespoke compliance procedures aligned with specific regulatory requirements in each European country of operation. While many regions are quickly catching up, Europe remains the gold standard in online gambling. Gross revenue is expected to surpass €27 billion in 2025, dwarfing projections in other continents.

The ancillary activities clause

Member States shouldtherefore explore means encouraging users to play on websites of authorisedoperators as opposed to websites of unauthorised operators providing serviceswithout a licence. Regulators and industry alike stressed that continuouscooperation and dialogue can only benefit the quality and efficacy ofregulation. Regulators need to have a coherent legalbasis, be adequately resourced and have rules and procedures that are fit forpurpose. A number of regulators deem that a regulator’s powers should cover allforms of gambling (online and land-based).

These issues may involve delays in payment, refusal to honor winnings, or discrepancies in payout calculations. Such disputes often require consumers to seek legal recourse based on the breach of contractual or statutory rights. B. Players’ Tax LiabilitiesIn general, casual players’ winnings are not heavily taxed in the Philippines. However, professional gamblers or those who treat gambling as a regular source of income may be subject to income tax obligations.

A wide range of media contributing to exposure to commercial communications relating to gambling exists, for example print media, direct mail, audiovisual media and outdoor advertising, as well as sponsorship. All licensees are subject to a duty of care to prevent underage gambling and to safeguard players against the risk posed by excessive gambling. In terms of remote gambling, this means (amongst other things) that applicants must have completed the risk analysis of the games of chance offered before submitting the application and have an extensive addiction prevention policy in place. The licensee must be able to apply a number of different intervention measures, differing in severity and impact, on the player.

With tools like the Self-Assessment Test, Safer Gambling Guide, and Proactive Monitoring Tips, we empower informed choices, promote balance, and set high standards for player protection. Regarding licensed offers, licensees are at the risk of enforcement should they violate the BGA. This applies also in the event of outsourcing, meaning that the NGA will take enforcement action against a licensee should one of its B2B suppliers violate regulatory requirements. Licensees are not required to team up with local land-based operators and international liquidity pooling is permitted, provided that the games offered in the other jurisdiction(s) are offered under the basis of a licence, issued by the authority in that jurisdiction. The obligation to be licensed only falls upon business-to-consumer (“B2C”) operators, there is no business-to-business (“B2B”) licensing requirement for intermediaries, such as software providers. In contrast to other jurisdictions, individual personnel are not required to hold their own licence (personal management licence).

Jurisdictional clarity for online gaming operators: Advocate General Emiliou on cross-border liability and gambling law

There is also the question to what extent an amendment to the Wok is sufficient to regulate this power (Measure 9).For better enforcement within the licensed supply, a power is created to suspend licenses independently, without the need for an intention to revoke the license (Measure 10). In addition to the measure relating to the setting of a spending limit and obligatory contact between the gambler and the gambling provider, more measures are going to be introduced to make players more aware of their gambling behaviour before, and also during, a gambling session. For example, players have to determine a spending limit in a neutral environment, without any pre-filled options or advertising.

Where implementation falls short of the coreprinciples set out, the possibility of introducing more binding norms can beconsidered. The Recommendation should extend tointermediaries providing the ancillary marketing service and operators shouldbe ensure that intermediaries contracted to carry out their advertisements doso in respect of the code. Considering the general lack of data andexperience with payment blocking methods it is not the time to consider an EUpolicy initiative. The Commission will assess the possibilities and limits ofpayment blocking in more detail before taking a final decision.

However, Portugal’s iGaming sector offers lucrative opportunities with over €300 million in annual revenues. The cultural affinity for online gambling, zero tax on winnings, and robust regulatory framework enhance its attractiveness. Moreover, its strategic EU location further boosts its appeal for operators aiming to expand across borders.

• Further research into the operation of the current policy is needed for the implementation of “unless”.
• The French government has repeatedly debated legalising online casinos, but for now, these games remain banned to protect state-controlled gambling enterprises.
• Ensuringcompliance of national law with the Treaty is therefore a prerequisite of asuccessful EU policy on online gambling.
• However, professional gamblers or those who treat gambling as a regular source of income may be subject to income tax obligations.

For example, imagine you’re engaged in a dispute with an online casino licensed in New Jersey, but the casino operates servers in a different state, such as Nevada. In this scenario, the jurisdiction would likely be based in New Jersey, as it is the licensing state and specified venue for legal actions. Submitting a complaint or reporting an online casino is generally the first step for resolving minor to moderate issues directly with the casino or through regulatory bodies.

Joint letter from the CMA and the Gambling Commission

In cases involving consumer dispute laws in gambling, the resolution process depends heavily on the clarity of the betting agreement and the transparency of the operator’s payout procedures. It is essential that operators maintain accurate records and adhere to fair payout policies to prevent disputes. A. Operators’ Tax ObligationsOperators licensed in the Philippines are subject to taxes and fees. In addition, there may be corporate income taxes, value-added taxes (VAT), and other assessments depending on the business structure. These taxes fund various government projects and social welfare programs, ensuring that the public ultimately benefits from legalized gambling activities. C. Importance of Transparency and Fair PlayLicensed operators must maintain transparency in their operations.

These CEZA-licensed entities often operate in markets outside the Philippines, thereby circumventing certain restrictions while maintaining compliance with CEZA’s licensing and regulatory requirements. Under this heading, various aspects have been addressed with a view to strengthening and ensuring consumer protection in online video games. The rapporteur has included in her draft report the need for parental control tools and for them to be made available to parents who wish to use them, thereby enabling them to monitor time spent playing video games and prevent excessive gaming.

Commission work in the field of online gambling services

The online gambling services sectoraccounts for 10.9% of the gambling market share in the EU with a growth rate for2015 estimated to be double that of 2008, which stood at €6.6 billion. A large number of MemberStates has engaged in a review of gambling legislation particularly over thelast few years. Given the cross-border nature of online gambling improving andsustaining the protection of consumers and the regulatory environment is in theinterest of all Member States. The environment is tightly regulated, with legal activities limited to state-controlled platforms like IDDAA and the National Lottery.

It will report on the progress achieved by publishing areport within two years of the adoption of this Communication. In the report,the Commission will assess if the actions as implemented are sufficient,notably with regard to the objectives of a more effective protection ofconsumers and deterrence of match-fixing. The Commission will also assesswhether these actions provide an adequate EU framework for online gambling orif additional measures, where necessary legislative ones, need to be taken atEU level. Effective enforcement by Member States of theirnational legislation – European online casino a key prerequisite of which is compliance with EU law – isessential for the attainment of the public interest objectives of theirgambling policy.

Based on the responses to the Green Paper,it can be estimated that between 0.5-3% of the population in the EU suffer fromsome type of gambling disorder. Simultaneously with the adoption of thisCommunication, the Commission is inviting the Member States concerned to provideinformation about the latest developments of their gambling legislation. TheMember States against whom infringement cases are open or complaints have beenregistered will be asked to provide legal and factual (updated) information toenable the Commission to complete its assessment of compatibility with EU law. Implement comprehensive responsible gambling measures across all operations to meet varying national requirements. The Gaming Regulators European Forum is an association of European gambling regulators committed to fostering collaboration and information exchange among its members.

Challenges include stringent compliance standards and high competition levels, necessitating substantial investments in regulatory compliance and marketing for market entry. Nevertheless, the UK remains an attractive proposition due to its stable legal framework, established consumer trust, and access to a significant player base fully engaged in gambling activity. “Gambling Laws and Regulations in Europe 2025” positions Europe as the gold standard in online gambling, with gross revenue projected to exceed €27 billion in 2025. This success is attributed to a mature and sophisticated regulatory environment, which combines harmonised EU directives like GDPR for data protection and the Anti-Money Laundering Directive (AMLD) with the autonomy of individual nations to regulate their markets. On 27 November 2015, gambling regulatory authorities of EEA Member States signed a cooperation arrangement to enhance administrative cooperation. The cooperation arrangement follows other initiatives announced in the Communication, ‘Towards a comprehensive European framework for online gambling’.

B. KYC and Customer Due DiligenceKnow-Your-Customer (KYC) processes ensure that operators properly identify their players to mitigate the risk of illegal financial activities. This also helps in preventing underage gambling, ensuring responsible gaming controls, and protecting vulnerable persons from addiction. Players should expect reputable online gambling operators to request identity verification, proof of age, and sometimes documents verifying their source of funds. Italy has a well-established regulatory framework for online gambling, overseen by the Agenzia delle Dogane e dei Monopoli (ADM). The country allows various forms of online gambling, including casino games, poker, sports betting, and lotteries. Operators must obtain licenses from the ADM and comply with rigorous standards to ensure player safety and fair play.

The diversefinancing systems generate revenue which is of significance to the MemberStates which adopt mechanisms they feel are most suited to channel the revenue fromgambling to benevolent and public interest activities. A number of goodpractices exist, in particular where the proportions and the beneficiaries arepre-determined. Existing data does not indicate the growth in Europe of onlyone type or types of gambling service or to reduced revenue and, by analogy, ofreduced contributions to benevolent and public interest activities related tosuch considerations.