Public Gaming Magazine January/February 2016

// PUBLIC GAMING INTERNATIONAL // January/February 2016

port of good causes. Our goal is to forge a

better cooperation with the EU Commis-

sion. It is the strong cooperation between

the EU Commission (which upholds the

principles of the Union) and the gov-

ernments of the individual EU member

states (which protect the interests of its

citizens) that results in the most balanced

and effective regulatory framework.

We are trying to solve the problems

that the current state of confusion that

European regulations and enforcement

has created. We can observe the experi-

ences of those jurisdictions which opened

their markets up early. There are aspects

of their experience which would not be

desired by the political leaders of many

European governments. Gambling ex-

panded quickly and in ways that at least

some EU member states would like to

avoid. It is not the intention of the EL

to prohibit a government from deciding

to choose that kind of open-market mod-

el for itself. It would be our objective,

though, to encourage the EU Commis-

sion to respect the rights of EU member

states to choose a different path. The EL

Association respects the responsibilities

and the role of the EU Commission to

make proposals and take decisions that

serve the entire community of EU mem-

ber states. That is why we are proposing

that the high standard of integrity, respect

for the laws of each jurisdiction, respon-

sible gaming, and player protection estab-

lished by the operators of government-

gaming—that these principles be applied

to all categories of gaming and gambling.

The EL Association is working hard to

assure that the EU Commission provide

a basis of laws that enable the member

states to preserve the integrity of all gam-

bling categories, and i-gaming in particu-

lar, and empower the member states to

enforce their laws and regulations for the

protection of its citizens and the benefit

of society and good causes.

What are some of the obstacles to accomplish-

ing what we need as a community of govern-

ment-gaming operators? What can individual

lotteries do to help our common cause to de-

fend the lottery model on the legal/political/

regulatory front? Or compete in the consumer

market-place?

H. Höltkemeier:

Over the last number

of years, the major obstacle on the Euro-

pean level seemed to be the widespread

belief in the power of a Single European

Lotteries and Gaming market. Regulation

was criticized as being a tool for compa-

nies and states to protect their position

and the money generated by it. Due to

the difficult situation all over Europe

(crises in southern Europe, refugees from

Arab states, etc.) but also as a result of the

experiences in liberalized pioneer-states

where the negative impacts from fraud

and addiction increased significantly

while income to the state from gambling

decreased (or, or at least did not increase

as expected or in relation to the stakes),

there is a real comeback of solidarity as a

basic principle for the community of gov-

ernment-gaming operators, but not just

for those, to follow. We now have a posi-

tive expectation that the EU Commis-

sion will support the rights of its member

states to enforce a stronger regulation of

the entire games-of-chance sector. We are

hopeful! All the evidence shows that a

clear, enforceable regulatory framework is

so necessary to a sustainable path forward

for the Lottery and gaming industry. And

not just for the protection and benefit of

government-Lotteries, but for the entire

games-of-chance sector , and the purpose

of protecting the consumer.

The next objective is to engage the sup-

port of regulators, agents of law enforce-

ment, and lawmakers to protect licensed

operators and consumers against illegal-

gambling offers. Every regulation, even

the most basic ones, needs the support of

all these stakeholders for them to be effec-

tively enforced by regulators and agents

of law enforcement. The EL is working

hard to enlist the full support from ev-

eryone to fight against illegal offers. Ille-

gal operators have much lower costs than

licensed operators because they do not

pay their fair share to the government or

to good causes, and they do not bear the

costs of operating to even modest stan-

dards of consumer protection, security

and Anti Money-Laundering , and integ-

rity. Without effective enforcement of the

law, illegal operators will use their illegal

competitive advantage to deliver higher

prize-payouts, advertise and promote

their product in ways that are prohibited

for licensed operators, and thereby push

legal offers out of the market. That is why

effective law enforcement is a top priority

of the EL Association.

But prevention of illegality in the gam-

ing sector is not our only focus. Govern-

ment-Lotteries are in a market-driven

business. There will be more and more

licensed operators with legal offers com-

peting for the attention of the consumer.

As a specific sector, government-Lotteries

will need to innovate its games and meth-

ods of operation to attract and retain the

interest of its players. The EL has initi-

ated new programs this year, like the new

Innovations Seminar held in Warsaw, to

help its members be the world-class busi-

ness and marketing enterprises that will

succeed in the future and continue to

channel billions of euros to the support

of society and good causes.

The EL has always been such a powerful ad-

vocate for its members when it comes to regu-

latory issues. What is the current state of the

ongoing debate between the European Com-

mission goal of applying common market laws

to gambling and the EU member states goal

of applying member states’ authority (subsid-

iarity) to self-determination of the regulation

and taxation of gambling?

Continued on page 43