EC closes online gambling infringement proceedings

In a press release (that can be downloaded below) the European Commission has announced that it has closed infringement procedures in the area of online gambling and the treatment of relevant complaints against a number of Member States.

The reason for so doing is stated as follows:

“The Court of Justice of the European Union has repeatedly recognised Member States’ rights to restrict gambling services where necessary to protect public interest objectives such as the protection of minors, the fight against gambling addiction and the combat of irregularities and fraud. The Commission acknowledges the broader political legitimacy of the public interest objectives that Member States are pursuing when regulating gambling services. The Commission also notes Member States’ efforts to modernise their online gambling legal frameworks, channel citizens’ demand for gambling from unregulated offer to authorised and supervised websites, and ensure that operators pay taxes. With that in mind, it is not a priority for the Commission to use its infringement powers to promote an EU Single Market in the area of online gambling services. The Commission will continue to support Member States in their efforts to modernise their national online gambling legal frameworks and to facilitate cooperation between national gambling regulators”.

The announcement was met with dismay from the European Gaming & Batting Association, whose Secretary General, Maarten Haijer, stated (in an EGBA press release that can be downloaded below, together with an annex setting out specific infringement cases):

“Today’s decision by the Commission is unhelpful in the fight against unregulated non-EU gambling services. National courts will continue to be confronted with gambling cases and the CJEU will continue to rule on questions from national courts. This decision sends a signal that the Juncker Commission fails to appreciate the need to underpin its ambitious Digital Single Market programme with solid enforcement and guidance from the Commission itself, taking its role as guardian of the treaties seriously. The question is not whether the Commission should create an internal market for online gambling or not, but the idea that regulatory and EU law challenges of an internet sector like online gambling can be resolved by member states individually, shows a baffling lack of understanding of the digital consumer by the Juncker commission.”

Dismay was similarly expressed by Clive Hawkswood, CEO of the Remote Gambling Association who stated (in an RGA press release that can also be downloaded below):

“The existence of infringement proceedings and the Commission’s subsequent pressure on Member States to comply with EU law has helped with the introduction of many effective and sensible regulatory regimes for online gambling across Europe. However, many other cases have been left to languish for several years and many unlawful restrictions to the free provisions of services have yet to be addressed. In those circumstances we are of course dismayed that, with regard to the Internal Market, the Commission has effectively abandoned our sector and given a free pass to non-compliant regimes. However, we will continue to work with Member States with the aim of establishing EU-compliant regimes that would benefit European consumers, the online gambling industry, and national Governments.”

Download article PDF: EGBA Press release 07.12.17
Download article PDF: EGBA Members States infringements
Download article PDF: RGA Press Release 07.12.17