European Union (EU) Internal Market Commissioner Michel Barnier discusses Online Gambling Regulation

Legal

Michel Barnier’s entire speech from the European Parliament event can be read in full here.

Michel Barnier will propose, in September, an action plan targeting three aspects of online betting and gambling and plans to relaunch infringement proceedings under way. Speaking at a 27 June conference on 'How to regulate betting and gambling in Europe', organised by several members of the European Parliament, the internal market commissioner ruled out a directive for now, despite the European Parliament's request in its resolution of 15 November 2011 (see Europolitics4306).

Three areas of action

Rather than minimalist harmonisation, Barnier prefers to intervene where EU action will provide real added value in line with the subsidiarity principle. This includes three key areas: protecting consumers and citizens; preventing fraud; and ensuring the integrity of sport. "This is a good method," according to Jean-François Vilotte, who heads the French online gambling authority (ARJEL). "It shows great ambition. These are areas on which discussion and closer ties are useful to the different regulators as a supplement to national actions."

In the first area of intervention, Barnier suggests the development of a "common European base of principles and measures of protection" to ensure basic guarantees across the EU. He wishes to see the industry be the first to emphasise protection of minors and to adopt responsible advertising. The commissioner also sees the need for progress on preventing and curing addiction.

Action against fraud would consist primarily of extending the money laundering directive to online betting and gambling, which will be proposed next autumn, and measures to stem identity theft.

Defending the integrity of sport will require real cooperation between national regulators, online gambling operators and sports federations to prevent match fixing, said the commissioner. He wants to launch reflection on minimum rules on conflicts of interest, on the ban of certain types of gambling and on stricter control systems. Barnier does not rule out a European definition of sports fraud and making it a criminal offence, as defended by sports organisations.

Conditions

The first condition for implementing these proposals is to involve member states in administrative cooperation. That is the point of the regulators' meetings organised since the start of the year (4373).

For the Commission, development of an attractive legal offer is "the only way to effectively deter consumers from going on the many illegal sites".

"This point is important for the private online gambling operators represented by EGBA. We cannot go further in legislation without recognising that an attractive and diversified legal offer is the best bulwark against illegal gambling," said Sigrid Ligné, EGBA secretary-general.

Another measure that private operators support, as the parties behind certain complaints, is the reactivation of the nine infringement proceedings, held up for four years, against member states that have failed to open their online gambling sectors. "This goes hand in hand with the action plan announced by the commissioner. It is a constructive approach and we are waiting to see the details," added Ligné.

The commissioner expressed firmness when it comes to "enforcing common rules once they have been clearly established," namely reactivating these dormant infringement proceedings or launching new ones. His staff will "contact the member states concerned to review the situation".

Europolitics has learned that, in addition to the nine procedures under way, another 28 complaints have been lodged with the Commission.

Wednesday, Jun. 27, saw an event take place at the European Parliament in which the European Commission discussed the future regulation of online gambling. The European Union (EU) Internal Market Commissioner Michel Barnier spoke publicly on the subject for the first time since late last year, and the European Gaming and Betting Association (EGBA) has today expressed its satisfaction with Barnier’s announcement.

The Commissioner discussed two routes of action the Commission is set to take; it will take steps against Member States whose gambling regulation violates EU law by reactivating pending infringements and complaints, and will propose a number of European policy initiatives in September including the development of “a common European base of principles and measures of protection”.

Sigrid Ligné, Secretary General of the EGBA said, "The development of specific EU policy initiatives for the sector is essential and must go hand in hand, as confirmed now by Michel Barnier, with the EC reactivating the pending infringement procedures and complaints against national gambling legislations in breach with EU law. Full adherence with EU legal principles is the bedrock of any EU regulatory endeavor.”

The Commission recently confirmed nine pending infringement procedures and 28 new complaints against the gambling regulation of 12 different Member States. No hard action has been taken since 2008.

Commissioner Barnier highlighted the necessity for respect of EU rules, saying, "…If blatant infringements persist, I will not hesitate to propose to my colleagues that the appropriate proceedings be taken or relaunched.”

In addition to this, Barnier said, "It is also important for legal operators to be able to offer sufficiently attractive products for them to be a credible alternative to the illicit sites, otherwise consumers will continue to turn to illicit and unregulated providers.”

The Commission is backed by the European Parliament which has previously called for the Commission to act as “guardian of the Treaties”.

Michel Barnier’s entire speech from the European Parliament event can be read in full here.

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