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sabato 11 maggio 2024

Europe is well on its way towards full multi-licensing for online gambling


A new analysis by EGBA concludes that 27 out of 31 European countries employ some form of multi-licensing for online gambling, with an overwhelming majority implementing a full multi-licensing approach.

In recent years, Europe has experienced a remarkable transformation in online gambling regulation. Just fifteen years ago, the landscape was vastly different. Most European countries lacked dedicated regulations for online gambling or operated under exclusive rights models where only state-owned entities had a monopoly to offer online gambling services.[1]

But fast forward to today and the situation has evolved significantly. A new analysis[2] by the European Gaming and Betting Association (EGBA) concludes that the multi-licensing model has become the predominant regulatory approach in Europe. Under this model, multiple companies are permitted to offer online gambling services within a country, provided they comply with strict regulatory obligations.

Key findings of the analysis:

- 27 out of 31 European countries have adopted some form of multi-licensing, indicating a robust trend towards open, competitive markets.
- Four countries currently do not have any form of multi-licensing: Finland, Iceland, and Norway maintain exclusive rights models, granting state-owned entities a monopoly over all online gambling services, while Luxembourg lacks dedicated regulations for online gambling.
- Of the 27 countries with multi-licensing, 23 countries have a full multi-licensing model for all regulated online gambling products in those countries.
- Four countries have a mixed model with partial multi-licensing: Slovenia and Switzerland each have a monopoly for online sports betting, while Austria and Poland each have a monopoly for online casino gaming and poker, with multi-licensing for all other online gambling products.
- Cyprus (casino gaming and poker) and France (casino gaming) each impose product-specific prohibitions but both have multi-licensing for all other regulated online gambling products.
- Finland is currently undergoing legislative reforms, and is expected to establish a multi-licensing framework for online gambling in 2026.

“The momentum towards full multi-licensing for online gambling in Europe is undeniable. While a few exceptions still exist, governments are concluding that public policy objectives, particularly related to consumer protection and tax generation, are more effectively met through well-regulated online competition. Finland’s current transition towards multi-licensing signals the impending end of the last online gambling monopoly in the EU, marking a significant regulatory milestone.”

“Similar deliberations regarding the future of the online monopoly are inevitable in Norway and Iceland. Furthermore, the handful of countries with either partial monopolies or product prohibitions should strive for greater consistency and effectiveness in their policies by phasing these out. With over 15 years of regulatory experience in Europe, it’s clear that full multi-licensing offers the best pathway to enhance consumer protection, increase tax revenues, and ensure stronger regulatory control. The time has come for the last remaining European countries to embrace this optimal form of online regulation.” – Maarten Haijer, Secretary General, EGBA.
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sabato 23 dicembre 2023

EGBA expresses concern over new Italian decree


The European Gaming and Betting Association is deeply concerned about the proposed new Italian decree on online gambling, which is currently under discussion in the Council of Ministers. The decree includes provisions that would introduce a significant reorganization of the sector, particularly regarding the cost of license fees. The possible introduction of (quasi) prohibitive licensing regimes and fees also raises concerns on compliance with EU law, which will merit consideration.

Recent news reports suggest the decree will set an unprecedented €7 million license fee, far surpassing other EU Member States. EGBA believes that such a substantial increase in the license cost is unwarranted, particularly when compared to the country’s previous licensing tenders for online gambling operations. The proposed fee represents a 35-fold increase from the 2018 license fee of €200,000 and triples the Italian authorities’ previous license fee proposal of €2.5 million, which was never implemented.

EGBA stresses that this significant license fee hike will have severe consequences. The high fee will deter new market entrants and likely force existing licensees, especially smaller operators, out of the market. This would, EGBA believes, lead to a drastic cut in the number of licensed operators from the current 91 licensees to a mere 15-20, contributing a significant increase in the size of the country’s online gambling black market, posing inherit risks for player protection.

Italy’s online gambling black market is already one of Europe’s largest, valued at over €1 billion annually and the fee proposal will make this situation worse, not better, with grave implications for the protection of Italian players.

Anticipated revenues from the proposed licenses, even in the most optimistic scenario, range between €105-140 million for the Italian state. EGBA suggests that implementing the current unused tender proposal of €2.5 million, without the previously suggested limiting factors of 40 licensees and an auction mechanism, could yield a similar or higher tax revenue without significantly harming market competitiveness.

The primary goal of Italy’s gambling regulation should be the protection of players and fostering a fair and competitive market environment and, thus, EGBA urgently calls upon the Council of Ministers to reconsider the proposed punitive increase in license fees. By limiting competition to only a few operators and inadvertently bolstering the size of the black market, the proposal risks undermining player protection.

EGBA is committed to working with the Italian authorities to develop a license fee framework which supports a well-regulated and sustainable online gambling market, prioritizing player protection and ensuring a level playing field for all operators. The existing advertising ban, which is currently exploited by black market operators, should be revoked to allow regulated advertising that protects minors and vulnerable groups, while enabling licensed operators to market their regulated gambling offer.

“The proposed increase in licensing fees is unparalleled and unheard of, it would make Italy the most expensive country in Europe to obtain an online gambling license. Together with the other restrictions in its gambling market, such as the local advertising ban, this proposed fee hike will make Italy a closed shop for new market entrants and lead to an exodus of existing licensees. This also raises concerns on compliance with EU law. We urge the Council of Ministers to reconsider the proposal, as it will make the country’s online gambling black market problem even worse, not better.” – Maarten Haijer, Secretary General, EGBA.
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sabato 21 ottobre 2023

EGBA concern at reported size of online gambling black market in Italy


According to a recent report by La Gazzetta dello Sport, the value of bets placed by Italian gamblers on the black market is estimated to be a staggering €25 billion per year, with €18.5 billion of this amount, or 75%, spent on unlicensed gambling websites.

Based on these figures, EGBA estimates that nearly €1 billion in online gross gaming revenue in Italy is lost to black market websites annually, equivalent to the combined regulated online gambling revenue of 8 other EU countries. What is concerning is that it means many Italian players will be betting on websites that are based outside of the EU, which do not offer them even a basic level of consumer protection.

Italy’s Customs and Monopolies Agency (ADM) has already taken action by blocking over 9800 unlicensed gambling websites this year alone. This number is already 400 more than the total blocked in 2022, highlighting the increasing scale of the problem.

The protection of customers is a key priority for EGBA and it stands against gambling websites that target the EU market but operate outside EU law and fail to provide necessary consumer safeguards for Europeans. It is crucial that the Italian authorities do more to raise awareness among Italian gamblers about the risks associated with using unlicensed platforms based outside the EU, and to signpost the licensed operators who adhere to the regulated responsible gambling practices and regulations in the country.

“The significant size of Italy’s online black market is concerning, yet it is not surprising given that Italy has one of Europe’s strictest advertising regimes for its licensed gambling companies. The country’s ban on advertising for licensed gambling operators is clearly favouring the black market. Without a sufficient level of advertising, there is no real way for Italians to tell the difference between a gambling website which is licensed in Italy – and applies the country’s consumer protection rules – and one that is not. It is evident that enforcement action against black market operators is not sufficient, and that the government needs to revise its advertising rules for gambling to ensure Italian citizens can be well-informed about the licensed websites in the country.” – Maarten Haijer, Secretary General, EGBA.
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