Though the initial version of the Act in 2020 did not specifically mention online gambling, a new compromise text on the bill included a reference to gambling in the beginning. The text stated that applicable national laws should comply with Union law, particularly regarding the freedom of establishment and provision of services within the Union, including online gambling and betting services.
This wording suggests that EU member states cannot enact laws that would prevent international operators based in EU states, like Malta, from accepting European customers. The Netherlands recently announced its crackdown on unlicensed operators accepting Dutch customers, prompting several operators to block customers from the Netherlands. Similarly, a recent report from the Ministry of Finance in Sweden recommended a similar approach to streamline the enforcement of gambling laws.
In response to the EU proposal, The European Lotteries Association (EL) urged the EU’s Working Party on Competitiveness and Growth to remove any specific mentions of online gambling. EL argues that the inclusion of online gambling is misplaced, acknowledging that certain freedoms apply to the online gambling sector, but emphasizing the unique nature of gambling and the varying moral, religious, and cultural differences among EU member states.
EL asserts that European courts have consistently recognized the potential risks and negative effects of unrestricted competition in the gambling sector, stating that individual states should have the right to implement their own restrictions on gambling based on the public interest. EL further argues that national regulations in the gambling sector aim to combat crime, fraud, and protect consumers, and that the reference to online gambling falsely implies non-compliance with EU law.
