Towards a comprehensive european framework for online gambling eu com(2012) 596_3_en

EUROPEAN
COMMISSION

Strasbourg, XXX
COM(2012) 596/3

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT, THE COUNCIL, THE ECONOMIC AND SOCIAL COMMITTEE
AND THE COMMITTEE OF THE REGIONS

Towards a comprehensive European framework for online gambling

{SWD(2012) 345}

EN EN

TABLE OF CONTENTS
1. Introduction .................................................................................................................... 4

2. Key challenges and proposed responses......................................................................... 5

2.1. Compliance of national regulatory frameworks with EU law........................................ 6

2.2. Enhancing supervision, administrative cooperation and efficient enforcement............. 8

2.2.1. Establishing appropriate supervision and control in Member States ................... 8

2.2.2. Fostering cross-border administrative cooperation .............................................. 9

2.2.3. Ensuring efficient enforcement at national level.................................................. 9

2.3. Protecting consumers and citizens................................................................................ 11

2.3.1. Working towards a high level of protection across the EU................................ 11

2.3.2. Ensuring the protection of minors ...................................................................... 12

2.3.3. Enhancing responsible advertising..................................................................... 12

2.3.4. Preventing problem gambling or gambling addiction........................................ 12

2.4. Preventing fraud and money laundering....................................................................... 14

2.4.1. Extending anti-money laundering measures ...................................................... 14

2.4.2. Tackling identity theft and other forms of cybercrime ...................................... 14

2.4.3. Safeguarding the security of gambling equipment............................................. 15

2.5. Safeguarding the integrity of sports and preventing match-fixing............................... 15

2.5.1. Fostering cooperation between stakeholders...................................................... 16

2.5.2. Developing anti-match fixing measures............................................................. 16

2.5.3. Ensure effective deterrence of match fixing ...................................................... 16

2.5.4. Promoting international cooperation.................................................................. 17

3. Conclusions .................................................................................................................. 17

2

1. INTRODUCTION
Online gambling1 is a fast growing service activity in the EU, with annual growth rates of
almost 15%2. Annual revenues in 2015 are expected to be in the region of €13 billion,
compared to €9.3 billion in 2011. This would represent a total growth rate of almost 40%3.
The economic significance of the sector is also shown by the high level of innovation of the
EU industry and the increasing amount of tax revenues generated in the Member States.

The fast pace of online technologies development in recent years has facilitated the provision
of gambling services through diverse remote distribution channels. These include the internet
and other means of electronic or distance communication such as mobile phone technology or
digital TV. The nature of the online environment means that gambling sites may operate in
the EU, outside any form of control carried out by regulators within the EU. Consumers in
Europe also search across borders for online gambling services which, if not properly
regulated, may expose them to significant risks. The extensive range of offers and the rising
level of demand for online gambling services pose a number of challenges when it comes to
ensuring the proper implementation of public policy objectives at the national, EU and
international level.

In 2011, the Commission adopted a Green Paper on online gambling in the Internal Market4.
Through that public consultation it sought to obtain a full picture of the existing situation, to
facilitate the exchange of best practices between Member States and to determine how, in due
consideration of their public policy objectives and without undermining the internal market,
the differing national regulatory models for gambling can coexist and whether specific action
may be needed at the EU level to ensure greater coherence. The responses to the consultation
differ both in terms of the content and the instruments that should be used for EU initiatives.
Overall, it does not appear appropriate at this stage to propose sector specific EU legislation.
However, there was an almost unanimous call for policy action at EU level and the responses
allow for a clear identification of the key priority areas where action is required.

This Communication, together with the accompanying Commission Staff Working
Document5, identifies the key challenges posed by the co-existence of national regulatory
frameworks within the Internal Market. It also seeks to propose answers to these challenges in
the form of actions to be taken both at the national and EU level. The Staff Working
Document provides more detailed information resulting from the analysis of the responses to

1
The term "online gambling" refers to a range of different gambling services and distribution channels. See for
an overview and discussion of the definitions section 2 of the Staff Working Document
2
In 2011 annual revenues of the overall EU gambling market were estimated to be around €84.9 billion, with
annual growth rates of around 3%. Between 2008 and 2011 the land based gambling market grew by around
8.3%.
3
H2 Gambling Capital (gaming and betting consultancy)
4
Green Paper on on-line gambling in the Internal Market (COM(2011) 128 final)
5
Staff Working Document reference No

4

the Green Paper, the proposed initiatives in this Action Plan, as well as relevant data. The
Commission has drawn from good practices in the EU and Member States in order to propose
responses to the varied range of issues related to online gambling.
In view of the developments regarding the offer and promotion of online gambling in the EU
greater clarity is needed. This Communication proposes a combination of initiatives and
relevant measures covering a range of issues, seeking to enhance legal clarity and establish
policies based on available evidence. These actions, fully taking into account the principles of
subsidiarity and proportionality, highlight five priority areas to address the challenges in the
EU:

- compliance of national regulatory frameworks with EU law
- enhancing administrative cooperation and efficient enforcement
- protecting consumers and citizens, minors6 and vulnerable groups
- preventing fraud and money laundering
- safeguarding the integrity of sports and preventing match-fixing

The proposed actions focus on online gambling services and issues linked to the free
movement of services (Article 56 TFEU) and the freedom of establishment (Article 49 TFEU)
in light of the growth of online gambling in the EU and the well-developed cross-border
supply of such services. However, a number of the actions are pertinent to both online and
offline gambling services7.
Finally, this Communication responds to the Council's conclusions on the framework for
gambling and betting in the EU Member States8, a series of Presidency progress reports9, the
resolution of the European Parliament on online gambling in the Internal Market10 and to the
Opinion of the European Economic and Social Committee11.

2. KEY CHALLENGES AND PROPOSED RESPONSES
While Member States are in principle free to set the objectives of their policy on games of
chance and to define in detail the level of protection sought, national regulatory frameworks
have to comply with EU law and internal market principles and rules. Ensuring compliance of
national law with the Treaty is therefore a prerequisite of a successful EU policy on online
gambling.

6
Minors as used in this Communication include "children". In line with Article 1 of the UN Convention on the
Rights of the Child, a "child" means any person below 18 years of age. In certain Member States young adults
are covered by the regime applicable to children
7
All the actions proposed to be taken up by the Commission in this document are consistent and compatible with
the current multiannual financial framework
8
3057th COMPETITIVENESS Council conclusions on the framework for gambling and betting in the EU
member states, 10 December 2010
9
Council Presidencies Progress reports on the framework for gambling and betting in the EU Member States
(2008-2011)
10
2011/2084(INI)
11
CESE 1581/2011 - INT/579

5

In view of the type of challenges posed by the development of online gambling and their
implications for each Member State it is not possible for Member States to effectively address
these challenges alone and to provide individually a properly regulated and sufficiently safe
offer of online gambling services. The Commission's actions on administrative cooperation
will help Member States to better understand each other's regulatory frameworks, share good
practices and improve convergence in tackling common problems. In addition, greater and
long term collaboration between Member States would enhance the EU's capacity to more
effectively tackle the international dimension of online gambling.

Improving the protection of consumers and the regulatory environment is in the interest of all
Member States and all stakeholders. The development of an attractive range of legal gambling
opportunities is also key to effectively prevent consumers from going on unregulated sites.
Therefore, action at EU level should aim at adequately protecting all citizens in Europe within
a balanced regulated environment. In light of this, the Commission proposes to undertake
action, together with the Member States, designed to offer a common and high level of
protection to all European consumers and citizens, including minors and vulnerable groups.
These proposed actions seek to address the risks emanating from unregulated markets and
organised crime, such as fraud and rigging of events.

Overall, the initiatives are expected to contribute to an improved framework governing online
gambling services in the EU and pave the way for strengthened cooperation between Member
States' regulatory authorities.

The Commission will

• In 2012 establish an expert group on gambling, composed of representatives of Member
States, to exchange experiences and good practices as well as to provide advice and
expertise on the preparation of EU initiatives.

2.1. Compliance of national regulatory frameworks with EU law
Online gambling regulation in Member States is characterised by a diversity of regulatory
frameworks. Few Member States prohibit the offering of games of chance on the internet,
either for all games or for certain types, such as poker and casino games. In some European
jurisdictions, monopolistic regimes (offering online gambling services) have been established.
These are run either by a state-controlled public operator or by a private operator on the basis
of an exclusive right. A growing number of Member States has however established licensing
systems thus allowing more than one operator to offer services on the market.

In response to the societal, technological and regulatory challenges, a significant number of
Member States has recently reviewed their gambling legislation to take account of new forms
of gambling services. These regulatory changes have led to an increase in the offer of
gambling services by operators authorised in an EU Member State over the last few years and
to considerable differences in national regulations. There has also been a development in
cross-border offers, often not authorised under national rules in the recipient Member State.
Compliance of these national rules with the Treaty has been challenged in front of national
6

courts and questions on the interpretation of EU law have been referred to the Court of Justice
of the European Union (CJEU).

National regulatory systems must respect EU law. In a series of judgements, the CJEU has
provided general guidance on the interpretation of the fundamental freedoms of the internal
market in the area of (online) gambling, taking into account the specific nature of gambling
activities, with a view to enabling national courts to assess the circumstances under which
restrictive national gambling laws are justified on grounds related to the general interest.

The CJEU has confirmed that the provision and the use of cross-border gambling offers is an
economic activity that falls within the scope of the fundamental freedoms of the TFEU. In
particular, Article 56 TFEU prohibits restrictions on the freedom to provide services to
recipients in other Member States. National rules which prohibit the provision of gambling
services authorised in other Member States were found to restrict the freedom of national
residents to receive, over the internet, services offered in other Member States. They also
restrict the freedom of operators established in other Member States to provide gambling
services.

Member States may restrict or limit the cross-border supply of all or certain types of online
gambling services on the basis of public interest objectives that they seek to protect in relation
to gambling. The national rules focus mainly on consumer protection objectives, in particular
the prevention of problem gambling and the protection of minors, and on crime and fraud
prevention. While Member States usually offer legitimate reasons for the restriction of cross-
border gambling services, they must nonetheless demonstrate the suitability and necessity of
the measure in question, in particular the existence of a problem linked to the public interest
objective at stake and the consistency of the regulatory system. Member States must
demonstrate that the public interest objectives they have freely chosen to ensure are being
pursued in a consistent and systematic manner and they must not undertake, facilitate or
tolerate measures that would run counter to the achievement of these objectives.

In the past years infringement cases have been launched by the Commission against a
significant number of Member States and remain under investigation to date. Numerous
complaints in the field of gambling, based on Articles 49 and/or 56 TFEU, are also currently
registered. The Commission uses the in-depth factual information gathered from the Green
Paper consultation as well as the latest case law of the CJEU in its on-going assessment of
national legislation in the pending infringement cases and complaints. This assessment
focuses in particular on whether national gambling policies are consistent, notably with regard
to their regulatory approaches to the on-line and off-line offers of the same type of game as
well as to games which are clearly comparable in terms of the degree of risk they bear in
relation to fraud and/or consumer protection. The assessment also focuses on the transparency
and non-discrimination of licensing schemes as well as on the proportionality of licensing
conditions.

Simultaneously with the adoption of this Communication, the Commission is inviting the
Member States concerned to provide information about the latest developments of their

7

gambling legislation. The Member States against whom infringement cases are open or
complaints have been registered will be asked to provide legal and factual (updated)
information to enable the Commission to complete its assessment of compatibility with EU
law.

The Commission will, wherever necessary, take action to enforce the relevant Treaty
provisions in respect of any national rules not complying with EU law, taking into account the
latest case law of the CJEU. Furthermore, the compliance of draft national legislation on on-
line gambling with EU law will continue to be assessed under the so-called notification
procedure12.
The Commission will

• Accelerate completion of its assessment of national provisions in the pending
infringements cases and complaints and take enforcement action wherever necessary.

2.2. Enhancing supervision, administrative cooperation and efficient enforcement
In order to ensure the successful implementation and application of a gambling policy at
national and EU level Member States need competent regulatory authorities, cooperating with
authorities in other Member States and using all available efficient enforcement means.

Several of the initiatives announced in this Communication will imply the processing of
personal data. In this respect, compliance with the EU acquis on data protection shall be
ensured13. This will require in particular a clear definition of the specific purposes of data
processing in order to ensure data quality and minimisation and compliance with other data
protection requirements.

2.2.1. Establishing appropriate supervision and control in Member States
In order to ensure effective implementation and enforcement of gambling rules and efficient
cross-border administrative cooperation, every Member State should have well-equipped
regulatory authorities in place. National regulatory authorities need to have adequate
competences and know-how in order to deal with regulatory challenges in a rapidly growing
and technology-based market. As not all regulatory authorities may have full competences for
the supervision of the gambling market they may need to cooperate with other relevant
authorities at regional or national level in order to meet demands for cooperation from other
Member States' regulators and not to fall short of their expectations.

12
Directive 98/34/EC laying down a procedure for the provision of information in the field of technical
standards and regulations, as amended by Directive 98/48/EC
13
Directive 95/46/EC on the protection of individuals with regard to the processing of personal data and on the
free movement of such data, see for the data protection reform and the reform package adopted by the
Commission on 25 January 2012: http://ec.europa.eu/justice/newsroom/data-protection/news/120125_en.htm

8

2.2.2. Fostering cross-border administrative cooperation
Enhanced administrative cooperation is imperative if today's regulatory challenges are to be
met. Enhancing administrative cooperation will assist Member States and gambling regulators
in their regulatory and supervisory role and improve the quality of their work. Practical
cooperation will enable Member States to become familiar with the systems and practices of
others, and to develop closer working relations at the operational level. Actions aimed at
fostering administrative cooperation also need to result in a reduction of unnecessary
administrative burdens, in particular in the authorisation process and the supervision of
operators authorised in more than one jurisdiction. The certification and standardisation of
online gambling equipment can also play an important role in this respect.

Successful administrative cooperation requires a clear definition of the areas Member States
can request and exchange information on and develop common actions and initiatives.
Furthermore, an appropriate structure has to be in place, with a clear mandate for cooperation
which can address the operational needs of regulatory authorities. The precise form of
cooperation between national regulators depends on the kind of information and data that can
be exchanged between the authorities.

A first immediate step on cooperation is to focus on exchange of general information and best
practice, in order to share intelligence and experience and to build trust and a sense of mutual
interest between regulators. As a second step, through dialogue with Member States, the
Commission will further explore the possibilities for an exchange of personal data, in
compliance with national and EU rules on data protection. To this end, recourse to the Internal
Market Information system (IMI)14 could facilitate administrative cooperation between
Member States.

Cooperation within the EU will not respond to all the challenges in the online gambling
market. Many of these challenges are of a cross-border nature, often originating from outside
the EU. In order to coordinate actions and promote initiatives addressed to countries outside
the EU, the Commission will together with Member States identify issues to be raised with
third countries and seek to strengthen dialogue with them.

2.2.3. Ensuring efficient enforcement at national level
Effective enforcement by Member States of their national legislation – a key prerequisite of
which is compliance with EU law – is essential for the attainment of the public interest
objectives of their gambling policy. Effective enforcement depends, inter alia, on a sound
organisational structure and full competences for the national gambling authority, adequate
administrative cooperation with other regulators and suitable enforcement tools.

14
A Regulation on administrative cooperation through IMI (based on Commission proposal COM(2011) 522
final) is expected to be formally adopted by the European Parliament and the Council in September/October
2012. This Regulation will create the possibility to launch IMI pilot projects to test the use of IMI for
administrative cooperation, including the exchange of personal data, in any Single Market area provided that
there is a legal basis for the exchange of these data.

9

Preventive enforcement measures aim at reducing the initial contact of citizens with the offer
of cross-border online gambling services which are not compliant with the legislation in force
in the recipient Member State ("unauthorised")15 and at ensuring compliance with national
gambling rules and common principles, such as player education and information,
understanding players' choice and behaviour and encouraging responsible business conduct.
Responsive enforcement measures, such as limiting access to websites offering unauthorised
gambling services or blocking payments between players and unauthorised gambling
operators, have certain benefits but also possible shortcomings. Such measures also need to be
carefully assessed in the light of safeguarding fundamental rights and fundamental freedoms
of the TFEU. Responsive enforcement measures that require online intermediaries hosting
illegal gambling offers to take action (take down the offer or disable access to the offer to
customers in specific Member States), could benefit from clarification as regards the
procedures to be followed. The Commission is preparing a horizontal initiative on notice-and-
action procedures which should provide the clarity needed. In addition, cooperation could be
enhanced via the network established by the Consumer Protection Cooperation Regulation
which allows cross-border enforcement actions16.

MAIN ACTIONS

The Commission will

• Facilitate administrative cooperation between gambling regulators and explore
possibilities offered by the IMI regulation to cover the exchange of
information/cooperation between Member States by 2013,
• Enhance exchange of information and best practice on enforcement measures and explore
the benefits and possible limits of responsive enforcement measures, such as payment
blocking and disabling access to websites, at EU level,
• Provide clarification on the procedures for notifying and acting on unauthorised content
hosted in the EU by online intermediaries17,
• Develop regulatory dialogue with third countries.

Member States are urged to

• Set up and provide gambling regulatory authorities with clear competences and ensure
cooperation with other relevant competent authorities,
• Explore means to inform consumers about available authorised offers in order to direct
demand to the legal market.

15
Unauthorised gambling services in the recipient Member State does not imply that such services are not
regulated in the Member State of origin. Neither does that imply that they are not authorized in other recipient
Member States.
16
Regulation (EC) No 2006/2004 on cooperation between national authorities responsible for the enforcement of
consumer protection laws (the Regulation on consumer protection cooperation)
17
For more details see http://ec.europa.eu/internal_market/e-commerce/notice-and-action/index_en.htm

10

2.3. Protecting consumers and citizens
Throughout the EU Member States converge on the objective of protecting citizens although
they differ in terms of the regulatory and technical approaches undertaken to achieve this
objective. Appropriate action in the EU is needed so as to: 1) draw consumers away from
unregulated and potentially harmful offers, 2) protect minors from accessing gambling
facilities, 3) safeguard other vulnerable groups and 4) prevent the development of gambling-
related disorders18. All citizens should enjoy a high level of common protection throughout
the internal market.

While fully respecting each Member State's right to determine the regulatory framework for
gambling services, the Commission sees significant benefits in the development of a range of
authorised gambling opportunities in order to effectively dissuade consumers from using other
gambling offers. It is important for authorised operators to be able to offer sufficiently
attractive products, because in the absence of credible and sustainable offers consumers will
continue to turn to unregulated gambling websites, with the ensuing potentially harmful
effects.

2.3.1. Working towards a high level of protection across the EU
It is estimated that about 6.84 million European consumers participate in online gambling19.
In an inherently cross-border environment consumers must be able to make informed choices
and be able to recognise an authorised gambling offer. Faced with information overload,
consumers do rely on labels20. Therefore, the Commission encourages that details of the
relevant regulating authority feature prominently on the website of operators and that the level
of consumer information and knowledge is improved.

A number of Member States has experience with protecting consumers in the online
environment. The gambling industry has also developed valuable technical expertise and self-
regulatory approaches for socially responsible gambling. Action requires efforts of all
stakeholders. The right balance needs to be struck and measures to protect consumers should
not have the adverse effect of leading players to seek more attractive offers on unregulated
sites.

A common set of principles elaborated at EU level should aim at ensuring a high level of
consumer protection. These principles should include effective and efficient registration of
players, age verification and identification controls – in particular in the context of money
transactions, reality checks (account activity, warning signs, signposting to helplines), no

18
E.g problem gambling, pathological gambling, excessive gambling
19
H2 Gambling Capital
20
A European Consumer Agenda - Boosting confidence and growth (COM(2012) 225 final)

11

credit policy, protection of player funds, self-restriction possibilities (time/financial limits,
exclusion) as well as customer support and efficient handling of complaints21.

As a first step the Commission will prepare a Recommendation on common protection of
consumers.

2.3.2. Ensuring the protection of minors
The protection of minors must be a priority not least because 75% of 6-17 year olds in Europe
use the internet22. Preventive protection measures should be aimed at precluding minors
gaining access to gambling content. This is why the Recommendation should encourage that
regulatory systems provide sufficient age verification tools and ensure controls by operators.
Moreover, gambling sites should be encouraged to carry notices clearly indicating 'no
underage gambling' and provide information on the implementation of age verification
measures. These types of measures should be complemented by wider efforts such as
improving parental awareness of associated risks and software filtering in the home. In
addition, all operators should conduct their business in a responsible manner.

2.3.3. Enhancing responsible advertising
Responsible advertising is imperative in order to ensure that citizens are aware that: 1) age
restrictions apply, 2) gambling can be harmful if not played responsibly and 3) the risks can
be financial, social or health related. In the EU not all Member States have advertising
regulations specific to gambling services. Some Member States have dedicated codes of
conduct. Self-regulatory approaches have also been undertaken by the gambling and
advertising industry. All citizens in the EU need to be sufficiently informed on the choices
they make as well as on the risks associated with gambling.

The Commission will prepare a Recommendation on responsible gambling advertising to
ensure that operators authorised in a given Member State advertise gambling in a socially
responsible manner and provide key information to consumers. For the Recommendation to
be wholly effective, both Member States and industry will be asked to contribute to the
preparation of its scope and design. Member States will be recommended to provide for
adequate sanctions for breaches or non-compliance. The Recommendation will complement
the Unfair Commercial Practices Directive23.

2.3.4. Preventing problem gambling or gambling addiction
Based on the responses to the Green Paper, it can be estimated that between 0.5-3% of the
population in the EU suffer from some type of gambling disorder. Evidence of both the scale

21
As proposed in the proposals for a Directive on consumer Alternative Dispute Resolution and a Regulation on
consumer ODR at http://ec.europa.eu/consumers/redress_cons/adr_policy_work_en.htm
22
European Strategy for a Better Internet for Children (COM(2012) 196 final)
23
Directive 2005/29/EC concerning unfair business-to-consumer commercial practices in the internal market and
amending Directives 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC and of Regulation (EC)
2006/2004

12

and variety of gambling disorders is not readily available. Moreover, existing studies and
surveys do not allow for incontestable conclusions. A better understanding is required of 1)
the definitions used, 2) the determinants (for example, chasing winnings/losses, commercial
communications, accessibility, frequency), 3) causal links of types of games/bets, 4) the
adequacy of preventive instruments (for example, warning signs, self-limits, restricting certain
games/bets) and 5) the type of treatment required.

The Commission is currently seeking to acquire relevant information through ALICE RAP24,
an EU co-funded research project which will inter alia compile data, classify addiction, assess
determinants and the transition to dependence, present governance practices on addictions and
provide a consolidated figure for the scale of the problem in the EU. On the basis of the
intermediary reports that will be drawn up under this project, the Commission will consider
initiatives for a research policy on the development of gambling disorders, including detection
and treatment.
MAIN ACTIONS

The Commission will

• Adopt Recommendations on common protection of consumers and on responsible
gambling advertising in 2013,
• Support benchmarking and testing of parental control tools through the Safer Internet
Programme25 and the Connecting Europe Facility26 to improve age rating and content
classification systems,
• Assess recommendations on gambling-related internet addiction among adolescents under
EU NET ADB27 in 2012,
• Report on the relevant working groups under ALICE RAP in 2014 and carry out an
assessment of these research results,
• Assess market performance of online gambling services under the Consumer Market
Monitoring Survey from 2013.


• Strengthen information and awareness raising initiatives on the risks related to gambling,
as well as on unregulated gambling offers,
• Improve cooperation between gambling regulatory authorities and consumer organisations

24
This is a trans-disciplinary project, funded under the 7th Framework Programme for research and
technological development. It focuses on research related to addiction and lifestyles in Europe over 5 years
(2011-2015), For more information: http://ec.europa.eu/research/social-sciences/projects/486_en.html
25
Decision No 1351/2008/EC establishing a multiannual Community programme on protecting children using
the Internet and other communication technologies
26
Proposal for a Regulation of the European Parliament and of the Council establishing the Connecting Europe
Facility (COM (2011) 665)
27
Aimed at evaluating the prevalence and determinants of borderline addictive internet use and internet
addiction among European adolescents

13

• Increase the availability and use of online safety practices of children and young people to
prevent them from accessing gambling sites,
• Carry out surveys and data collection on gambling disorders.

2.4. Preventing fraud and money laundering
The main public interest objectives of Member States with regard to public order are the
prevention of gambling fraud and money laundering. Credit card fraud and theft of banking
credentials are reported to be the most common crime in relation to on-line gambling. Online
gambling may also be used for laundering of funds stemming from illegal activities. These
criminal offences are often committed cross-border and involve organised crime.

Member States' authorities as well as regulated operators are faced with a number of
challenges with regard to the effective application of anti-fraud and anti-money laundering
mechanisms. They can be most efficiently tackled through international cooperation and
coordination, for example through structured cooperation between national gambling
authorities, national police and international enforcement authorities. To the extent
appropriate, preventive and protective measures also relevant to the fight against money
laundering (such as, for instance, the prohibition of incurring loss on an anonymous basis)
should also be considered in the context of the Recommendation on common protection of
consumers. Training of the judiciary on issues surrounding fraud and money-laundering
related to gambling is also needed.

2.4.1. Extending anti-money laundering measures
With regard to gambling activities the Anti-Money Laundering Directive28 currently applies
only to casinos. Some Member States have already extended the scope of application of the
Directive to other forms of gambling and a number of regulated operators apply tools such as
customer verification processes, customer's profiling and payment monitoring. To create a
level playing field for all gambling operators as well as to ensure a comparable level of
protection across Member States, there is a need for a broader application of the Directive to
all gambling services.
The Commission will, in the context of the review of the Directive, consider extending its
scope to all forms of gambling whilst ensuring that proportionality is respected.

2.4.2. Tackling identity theft and other forms of cybercrime
The public consultation has made clear that the most frequent type of gambling fraud is
identity theft. This seems, however, to be reflecting a more general pattern, namely the
growing challenge that identity theft and other forms of cybercriminality are posing to the
online provision of services. These issues are currently addressed by the Commission in the

28
Directive 2005/60/EC on the prevention of the use of the financial system for the purpose of money laundering
and terrorist financing

14

context of its current policy on cybercriminality, including through its recent proposal to
establish a European Cybercrime center.29 In order to ensure that the solutions identified in
this context also contribute to safer online gambling services, the Commission will encourage
exchanges of experience and good practice in the fight against cybercrime within the expert
group on gambling, as well as exchanges with the European Cybercrime center, as
appropriate.

2.4.3. Safeguarding the security of gambling equipment
Certification of online gambling equipment including gambling software is commonly
required by Member State's competent authorities when deciding on an application for a
gambling licence. In order to ensure a comparable level of security of online gambling in the
EU, reduce the administrative burden relating to different national certification procedures
and provide for a possibility of interoperability where appropriate, the Commission will
explore the merits of introducing an EU standard on gambling equipment certification.
MAIN ACTIONS

The Commission will

• Consider extending the scope of the AML Directive to all forms of gambling in 2012,
• Encourage, in the context of its policy on cybercrime, exchanges of experience and good
practice within the expert group on gambling, as well as exchanges with the European
Cybercrime center, as appropriate,
• Explore the possibility of an EU standard on gambling equipment including gambling
software in 2013.


• Promote the training of the judiciary on issues surrounding fraud and money-laundering
related to gambling.

2.5. Safeguarding the integrity of sports and preventing match-fixing
Betting related match fixing is a specific type of fraud that goes against the interests of sport
organisations, sportspeople, players (consumers) and regulated gambling operators. Match
fixing runs contrary to the principle of fairness in sporting competitions, which is one of the
objectives of EU action in the field of sport (Article 165 TFEU). Addressing the issue requires
concerted and coordinated efforts from public authorities, sport organisations and gambling
operators.30 A number of regulatory (gambling licensing conditions, statutes of sport
federations) and self-regulatory mechanisms (codes of conduct) are in place in the EU as well
as educational campaigns, conflict of interest rules, bet monitoring systems and alert tools

29
Tackling Crime in our Digital Age: Establishing a European Cybercrime Centre (COM (2012) 140 final)
30
See Nicosia Declaration on the Fight Against Match-Fixing of 20 September 2012

15

(whistle blowing, hot lines etc.). Cooperation between stakeholders exists but is limited in
scope. There is a clear need for more cooperation between betting operators, sport bodies and
competent authorities including gambling regulators, both at national and international level.

2.5.1. Fostering cooperation between stakeholders
Cooperation agreements are a useful tool in this area and the Commission encourages their
further development and to include all relevant stakeholders (gambling operators, sport
organisations, regulators). These agreements effectively facilitate the creation of national
contact points where all relevant actors involved in fighting match fixing at national level can
come together, exchange information and coordinate actions. National contact points are an
essential element of efficient cooperation in view of tackling match fixing issues at EU and
global level.

2.5.2. Developing anti-match fixing measures
Member States' approaches to financing of anti-match fixing measures vary considerably
whilst none of the financing models currently applied has been found to be more or less
efficient than the others.
The Commission will develop in a recommendation anti-match fixing measures applicable
across Member States and sport disciplines in cooperation with stakeholders with a view to 1)
promote a more efficient exchange of good practices in the prevention of betting related
match-fixing, including initiatives on awareness raising and training for actors in the field of
sports, 2) ensure mutual reporting and follow-up actions of suspicious activities by sport
bodies, operators and regulators, including gathering reliable figures on the scale of the
problem, 3) establish minimum conflict of interest provisions, for example betting bans for
sport people and sport officials as well as the exclusion of youth events from betting, and 4)
introduce hotlines and other reporting or whistle-blowing alert mechanisms. Dedicated
workshops will be organised to this purpose with the involvement of experts on gambling.

2.5.3. Ensure effective deterrence of match fixing
The Study on match fixing in Sport31 found that match fixing is criminalised in all Member
States. It also indicated that a specific incrimination of sport offences did not necessarily lead
to better enforcement or fewer suspicious cases. The main shortcomings in relation to the
prosecution of match-fixing cases are of an operational nature and initiatives at EU level
should aim at improving the enforcement of anti-match fixing rules.
The Commission is participating in the work of the Council of Europe which is discussing a
possible convention against the manipulation of sports results. The aim is to provide national
systems with the tools, expertise and resources necessary to combat this threat.

31
http://ec.europa.eu/sport/news/20120410-study-on-match-fixing_en.htm

16

2.5.4. Promoting international cooperation
The Commission will, by using part of the funds available under the 2012 Preparatory Action
for European Partnerships in Sport32, launch test projects aimed at promoting international
cooperation in the prevention of match fixing. It will equally continue cooperation with the
International Olympic Committee (IOC) and the Council of Europe both of whom have
proposed and developed measures to address the issue in a global manner33. The Commission
will explore the possibility of including protecting the integrity of sport and combatting match
fixing in discussions with third countries and the competent international organisations in the
field of sport.

MAIN ACTIONS

The Commission will

• Adopt a Recommendation on best practices in the prevention and combatting of betting
related match fixing in 2014,
• Participate in the work of the Council of Europe on a possible Convention against
manipulation of sports results,
• Promote international cooperation and dialogue in the prevention of match fixing.


• Set up national contact points bringing together all relevant actors involved in fighting
match fixing,
• Equip national legal and administrative systems with the tools, expertise and resources to
combat match fixing,
• Consider sustainable financing of sports integrity measures.

3. CONCLUSIONS
Responding to the various regulatory and technical challenges of the online gambling sector
requires sound and effective measures. The actions announced in this Communication form a
comprehensive strategy to meet these challenges.

The European Commission will work together with the European Parliament, Member States
and all stakeholders concerned on the prompt implementation of this Communication. It will
call for a first meeting of the expert group on gambling in 2012 and initiate a dialogue with all
stakeholders. A stakeholder conference will be organised in 2013.

The European Commission will evaluate the implementation of this Communication and the
application of the measures by Member States and stakeholders. It will report on the progress

32
http://ec.europa.eu/sport/news/20120417-2012-call-for-proposals_en.htm
33
CM/Rec(2011)10, IOC recommendations against match fixing of 2 February 2012

17

achieved by publishing a report within two years of the adoption of this Communication. In
the report, the Commission will assess if the actions as implemented are sufficient, notably
with regard to the objectives of a more effective protection of consumers and deterrence of
match-fixing. The Commission will also assess whether these actions provide an adequate EU
framework for online gambling or if additional measures, where necessary legislative ones,
need to be taken at EU level.

18

Towards a comprehensive european framework for online gambling eu com(2012) 596_3_en

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