Liberalization of EU online gambling markets

EU Member States France and Denmark have both taken recent actions towards the opening up of their online gambling markets. Actions have required the involvement of the European Commission at different stages: through infringement investigations sparked off by the protectionist behavior of the state gambling monopolies and further investigations into the draft reforms of the national gambling markets.

Eric Woerth, France’s budget Minister, released information in March on the proposed liberalization of the French online gaming market to be limited to online poker and online sports/horserace betting when introduced in January 2010.

The European Commission has received details of the law for consultation however, French land-based casino operators expressed disappointment at the proposals and are expecting the European Commission to receive complaints. The limited scope of the online gambling licenses, strict tax and advertising conditions may already have drawn the attention of the European Commission, in terms of non-compliance with the EC Treaty.

Denmarks Ministry of taxation announced a partial liberalization of the online gambling market on 21 April to be implemented in the parliamentary year from October 2009 to May 2010, whereby legislative reforms will allow the introduction of licenses for online sports betting, casino games and poker. Such reforms put private operators to an equal level with the state gambling monopoly, Danske Spil, regarding the license fee.

The proposal on gaming reforms might be accepted after public consultation with a specialist working group. The reforms will be aimed at consumer protection, prevention of money laundering and other criminal activities and maintaining gambling revenues for charitable purposes.