Online European gaming operators forced to compromise

Online gaming operators throughout Europe have been forced to compromise in another frustrating year for the industry. Despite the terms of the European Union Treaty, a uniform gaming market throughout Europe has failed to materialize and operators are now being forced to accept the restrictions imposed by individual countries.  The European Court of Justice’s decision to rule in favor of De Lotto’s monopoly against Ladbrokes and Betfair in the Netherlands has been cited as a significant blow to the market.  A further ruling in favour of a state monopoly against Bwin in Sweden and Portugal only served to compound a growing sense of injustice.

Lawyer Quirino Mancini of SCM Partners explained that major online gaming operators have been backed into a corner. Companies are reluctantly accepting “licensing country by country because they cannot afford to lose market share and local authorities are not allowing them to cross borders”. He called the strategy the “only realistic approach” under the circumstances. Berwin Leighton Paisner’s Tom Lippiett echoed Mancini noting that political pressure has obscured legal propriety.

Others, meanwhile, have been developing new strategies in the hope of making progress. Clive Hawkswood, Chief executive of Remote Gambling Association suggested that greater harmonization between regulators will be required. Michel Barnier, the new European Commissioner for the Internal Market and Services, has revealed that he will be taking pro harmonization steps in the near future.  It remains to be seen how this contentious issue will develop. A green paper on the subject is expected to make an appearance as the debate continues to rage throughout Europe at large.