European Union
EU ombudsman’s ruling in EU’s favor on EBGA online gambling complaint seems a small wonder
The European Union’s Ombudsman office has ruled against the European Gaming and Betting Association (EGBA) with regard to a complaint that the group filed opposing EU, the previous year, over its deliberate dropping of cases involving cross-border (but within the EU) offering of online gambling services.
The EGBA filed its grievances against the EU back in December of 2016 in response to EU falling short of enforcing the EU’s cross-border codes referring the online-gambling services. The group cited several instances of the EU’s failure to intervene or force compliance by member countries. The group’s complaint leaned heavily on the notorious Article 56 of the TFEU, along with other regulations.
However, the EGBA’s complaint also ran into last year’s decision by the European Union to halt the attempts to enforce Article 56 in the face of defiant opposition from a majority of EU member states. Those countries have persistently sought to block cross-border services, often in the interest of protecting state-run lottery, casino, and other gambling operations.
It was a small wonder that whatsoever the EU would dismiss, the EGBA’s claim.
Here is the Ombudsman’s Office’s complete statement on the dismissal:
The European Gaming and Betting Association (EGBA) which represents online gaming and betting operators in the European Union, made a number of infringement complaints to the European Commission arguing that the regulatory framework for online gambling in certain Member States was not in line with EU law.
As EGBA was concerned that the Commission did not follow up on these complaints, and did not engage in an open dialogue with stakeholders, it turned to the European Ombudsman.
The Ombudsman inquired into the case. In the course of the inquiry, the Commission decided to close all the infringement complaints. The Ombudsman noted that the Commission has wide discretion on whether and how to pursue infringement cases and that the decision taken fell within the boundaries of that discretion. The Ombudsman inspected the Commission’s files concerning the several Member States in order to evaluate the Commission’s procedural handling of the infringement complaints in the light of the relevant rules and principles. On the basis of the inspection, she found that the Commission had not committed maladministration. Therefore, the Ombudsman closed the case.
“Wide discretion,” as interpreted by the EU, continues to mean, “We don’t want to enforce our own rules.” The problem is that the EU’s failure to enforce its own rules in a crux issue of online trade (online gambling) represents the top of a slippery slope; it’s not at all an absurd extension to see such EU inaction extended to other forms of online trade, and even into certain forms of land-based commerce. (You’ll read about such an example in a follow-up story originating in Hungary.)
Ever since France and Italy first won EU approval to firewall their countries’ online-gambling services, the entirety of the EU has been involved in a slow race to the bottom. It’s going to take a long time to pay out, but one of the likeliest scenarios is that every single European state will end up with its own protected set of services and operators. That’s going to play hell with Euro-based online poker for a few years, somewhere down the road, until an even later date when some form of complex, pan-European liquidity sharing pool can be created.
That, though, isn’t the present. For now, it’s a giant “Tough titties” from the EU regarding online-gambling restrictions and prohibitions that really should be covered by EU oversight.
According to Maarten Haijer, the Secretary-General of EGBA, “Infringements proceedings in this sector have become a complete mess since the Commission decided to wash its hands of its responsibility to ensure online gambling regulation in the Member States is in line with EU law. While the Ombudsman’s decision is disappointing, it does confirm that the Commission’s decision to close these infringement cases was a political one. If the Commission is not taking seriously its responsibility to uphold EU law and ensure Member States, like Hungary, comply with EU Court of Justice rulings, then who will?”
Source: flushdraw.net(BY
Compliance Updates
European Union Updates Country List for Stricter AML Checks
The European Commission, the executive branch of the European Union (EU), has updated its list of high-risk countries, from which players should be subjected to stricter customer checks by gambling operators.
Based on Directive (EU) 2015/849, Article 9, the Commission identifies any high-risk third countries that have strategic deficiencies in their regime on anti-money laundering and countering the financing of terrorism.
As such, operators based in the EU that are offering services to these countries or dealing with players from these nations are obliged to carry out heightened vigilance checks.
The list was first published in July 2016 and has been updated a number of times as further countries of concern are identified and flagged by the Commission.
The latest countries to be added to this list – in an update published last month – include Burkina Faso, the Cayman Islands, Haiti, Jordan, Malo, Morocco, Myanmar, the Philippines, Senegal and South Sudan.
Other nations included on the list include Afghanistan, Barbados, Cambodia, the Democratic People’s Republic of Korea, Iran, Jamaica, Myanmar, Nicaragua, Pakistan, Panama, Syria, Trinidad and Tobago, Uganda, Vanuatu, Yemen and Zimbabwe.
Baltics
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Experienced game industry professionals and individuals beginning their careers from around the world are welcome to join the event. One-to-one interviews with the hiring studios can be scheduled through the event platform. A great opportunity to get to know the studios and network with game professionals from around the world.
Participating in the event
As a job seeker attending Nordic Game Talents, take a few minutes to fill out a simple registration form. After filling the registration form you will receive a link to the online event platform – PINE, to join the event on 27th October. Participants joining Nordic Game Talents will also receive a free-of-charge pass to the Nordic Game Conference.
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European Union
EC Rejects Call to Reform Expert Group on Gambling
The European Commission (EC) has stated that will not support the re-establishment of an “Expert Group on Online Gambling” – a cross member state collaborative body supported by 14 regulatory agencies.
Dutch gambling regulator Kansspelautoriteit (KSA) published the EC’s response to a letter sent by KSA Chairman Rene Jansen on behalf of European regulators requesting to reinstate the group which had been decommissioned in 2018.
Regulators backed the reinstatement of an Expert Group to exchange knowledge and best practices with regards to governing gambling and protecting national consumers from risks and harms.
Jansen’s letter further stated that regulatory cooperation was required to secure greater oversight on technical requirements and to better evaluate the legislative outcomes of member-states governing their regulated gambling marketplaces.
“The work of the Expert Group was particularly successful. We achieved results that benefited consumers, national authorities and the gambling sector and the active participation in the group also demonstrated that member states are well equipped and willing to achieve positive outcomes together. And we still believe this to be the case,” Jansen said.
Issuing a response, the office of European Commissioner Thierry Breton referred to the EC’s original verdict to decommission the group taken in December 2017.
The expert group was deemed as no longer viable following the European Court of Justice (ECJ) arbitrating 30 cases related to gambling, in which all casework stated that national regulations superseded EU rules.
The EC underscored that gambling laws and standards would be maintained as the domain of the individual member state – which can choose to apply its legislative preferences to taxation, the licensing of market incumbents, industry standards and how a member state should protect its national consumers from harms.
The Commission can only intervene on member-states gambling laws if they are deemed to have breached the wider EU policies on market competition, fair business policies and state aid rules.
Replying to Jansen’s concerns, the EC responded that gambling regulators had the support of individual policy units carrying comprehensive oversight on “anti-money laundering (DG FISMA), consumer and youth protection (DG JUST), the prevention of addiction (DG SANTE) or issues of taxation (DG TAXUD)”.
“At this stage, our Directorate General does not intend to reverse this decision and to reinstate the Expert Group on Gambling Services under its responsibility,” the EC letter concluded.
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