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European Online Gambling

There have been some significant developments in European online gambling legislation over the past week. Here are the latest updates.

One of the most controversial developments in the world of online gambling in Europe involved France.  France received the wrath of both the European Commission (EC) and the European Gambling and Betting Association for drafting online gambling legislation that was, in the eyes of both governing authorities, discriminatory.  Both governing bodies rejected the proposed legislation from France.

Estonia passed the Estonia Gambling Act which allows foreign online gambling operators licensed in the European Union jurisdictions to operate within the confines of Estonia.  There are two qualifiers that accompany this legislation:  First, these foreign operators must purchase a license in Estonia, which may be an expensive proposition, since these operators are already carrying a license in another domain; second, these foreign online gambling operators will need to become sub-contractors of licensed state operators. 

The good news about the Estonian legislation is that it provides measures for checking underage gambling and ensures that responsible gambling is in place.  Online casino operators who are working without a license will have their illegal operation shut down, and Internet service providers will be notified that they will have to block access to these sites.

Denmark is another country that felt the displeasure of the European Commission for its protectionist online gambling policy.  In 2007, the EC ruled that Denmark was creating unfair online gambling competition by limiting it to the state-owned monopoly, Danst Spil.  This policy was directly contrasting the rules of the EC which encourages free competition.  Now, Danish legislators have proposed that there can be online gambling sites in the areas of online poker, sports betting and casino gambling.  This would provide direct and healthy competition for the state-run Danst Spil.

Many online gambling casino operators are applying for licenses in Denmark.  It is ironic to note that while Denmark has made a 180 degree turn on the issue of online gambling competition within its jurisdiction, the country of Sweden remains adamantly set in its ways.  Sweden continues to disallow online gambling competition with its state-sanctioned site. This is against European Commission policy. 

With the advent of online gambling in the United States expected to be approved by both Houses of Congress later this fall, and the action on the European front, the next few months figure to be full of robust action on the online gambling front.

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