The online gambling environment in Europe is changing constantly, particularly from a regulatory point of view. There are countries that have been considering the legalization and regulation of their online gambling markets and others that have already done so but are now trying to adjust their regulations to customers and operators’ needs and demands as well as to the general regulatory pattern the European Union is attempting to implement. Here is a short overview of the latest regulatory updates from several European countries and what effects these could have on the overall online gambling industry environment.
Czech Republic
The Czech Republic is among the countries in Europe to be the closest to opening its online gaming market to international operators. Earlier this month, lawmakers from the country’s Senate approved a bill that called for foreign iGaming companies based in the European Union or in the European Economic Area to be allowed to provide their services and options in the Czech Republic. At present, there are five online gambling operators to have received licenses from the local gambling authorities.
Among other things, the proposed iGaming measure contains provisions for the introduction of a 35% tax on online casino games and of a 23% one on sports betting. The proposal is also concerned with another important matter – the protection of residents from problem gambling behavior and gambling addiction. Under the bill, a national exclusion database is to be set, allowing individual customers to block themselves from gambling online.
As any other such legislation, the one proposed by Czech lawmakers also contains provisions regarding the way the country is to deal with unlicensed operators, once and if the bill comes into effect. The Czech Ministry of Finance would be given the authority and responsibility to prevent any such operators from providing their services by blocking their websites. What is more, payments from and to unlicensed websites would be banned.
The proposed measure now has to be backed by President Miloš Zeman in order to be signed into law. If approved by the official, it is not expected to come into effect before January 1, 2017.
Poland
Regulatory efforts have also been introduced in Poland. Deputy Prime Minister and Minister of Science and Higher Education Jarosław Gowin has recently come up with a proposal for the legalization and regulation of online poker offering within the country’s borders. At present, residents can only play the popular game at brick-and-mortar casinos. Private home tournaments and Internet poker options are strictly prohibited and are subject to heavy fines and imprisonment in certain cases.
According to Minister Gowin certain changes should be implemented in Poland’s current regulatory framework regarding the provision of Internet gambling as this would help the country prevent its gaming market from being ruled by the so-called ‘grey’ operators.
Apart from the legalization of online poker activities, the proposed legislation also calls for the replacement of the current 12% tax on sports betting options with a 20% one. Thus, according to Minister Gowin, more than PLN200 million (€50 million) would annually be contributed to the country’s coffers.
It is hard to predict whether the proposed bill would be welcomed by the government as Paweł Szałamacha, who is currently taking the post of a Minister of Finance, has formerly said that gambling expansion was not on lawmakers’ agenda this year. This is why it would not be such a big surprise if no further action on the legislation is taken.
France
Earlier in May, there were regulatory news from France as well. The country’s Senate has approved three important amendments to the French online gambling law or else known as Digital Bill. One of the amendments called for the local gambling regulator – ARJEL, to be authorized to ink partnership agreements with other European Union member states and jurisdictions within the European Economic Area in order to be able to share liquidity for online poker.
If the proposed changes come into effect, ARJEL would be given the authority to provide gambling operators with Article 21 gaming licenses with the opportunity to allow their players to take part in verified circle games of poker with fellow players from countries within the EU and the EEA. Under the French online gaming law, Texas Hold’em and Omaha poker variants are the only two verified circle games in France.
Although the proposal is aimed at boosting proceeds from online poker operations, certain obstacles may prevent the success of any future shared liquidity agreements due to the fact that the French tax system differs in certain aspects from the ones in other EU and EEA countries. For instance, taxes from cash games are deducted pre-flop and on the flop, the turn, and the river.
Although the proposed changes seem to be favored by the French Senate, they need to overcome a number of other legislative hurdles in order to come into effect. People with knowledge of the matter have suggested that if the amendments are signed as part of the country’s gambling law by the end of 2016, the first shared liquidity agreements could be inked early in 2017. What is more, Portugal and Spain are the first countries with regulated markets that may express interest in sharing online poker liquidity with France.
Greece
Tax changes have always been among the regulatory amendments to create the biggest controversies. Last month, the Greek government voted in favor of the latest proposed financial bill, which included changes in the way online gambling operators were taxed.
At present, the country’s online gambling tax is a variable one and depends on the type of gambling activity. It ranges from 30% to 35%. Lawmakers proposed a fixed 35% rate on all kinds of Internet gaming activities provided within the country’s borders. The proposed change is expected to result in the amount of €54 million to be annually contributed to Greece’s coffers.
It is also important to note that the new tax system would apply to all 24 temporary licensees to be operating within the country. What is more, the temporary licenses of the 24 international gambling operators are to be replaced by permanent ones. Reportedly, the companies would have to pay €3 million in upfront fees for the initial five-year validity of their new gaming licenses.
It has also been reported that Greek gambling operator OPAP, which had formerly held the country’s betting monopoly, has welcomed the introduction of the flat 35% online gambling tax rate as this would result in fewer foreign operators expressing interest in providing Internet gaming options in the country.
