Online Gambling: Gambling with Regulation | Nair | European Journal of Law and Technology European online gambling regulation Finest News from the European Online Gambling Industry European online gambling regulation

New European Rules Roil Global Online Gambling Industry - WSJ

In light of the european online gambling regulation of regulatory challenges posed by the increasing availability of online gambling websites, there have, in recent years, been numerous calls european online gambling regulation the reform of gambling regulation.

This article explores certain key issues and regulatory challenges posed by online gambling from a UK and wider European perspective, with particular on the risks such activity poses in respect of children and young people.

The article european online gambling regulation the special characteristics of online gambling from a cross-disciplinary perspective, and european online gambling regulation the need for protecting children and young people from the dangers of online and problem gambling.

The article argues that, european online gambling regulation of piecemeal provision, what is needed is action which addresses the issues through the adoption of a robust, holistic approach that includes legal, social, and policy considerations, and advocates the use of technology in order to find an effective solution to protecting children and young people from the potential risks of online and problem gambling.

Online gambling is a rapidly growing industry, and has been identified as the fastest growing segment within the overall gambling market in the EU, with annual revenues in the region of 9. Despite its entertainment value, gambling has been a controversial area historically, and often frowned upon by different societies for various reasons.

As a result, the way gambling is regulated has also been quite territorial in nature. The Internet and consequent rise of online gambling has raised a number of challenges for this traditional model, due to the global nature of the Internet, and the numerous complexities associated with cross border gambling regulation. Online gambling is regulated in many states both within and outside the EU, albeit with no uniformity with respect to the regulatory approach.

These two models did seiner british online casino Vitaminbedarf pose much of a problem prior to the advent of the Internet because of the limited cross-border activity of the operators.

However, as online gambling became more prevalent with the growth of the Internet, the traditional regulatory model has proved to be problematic in many ways. In particular, there are specific challenges with respect to children and young people in this context, including the risk of problem and pathological gambling, which will be the main focus of this article. There have been initiatives undertaken at European level to review the regulation of online gambling in the last few years, which led to the European Commission issuing a Green Paper in[9] followed by a Consultation on Online Gambling in the Internal Market.

The background to the EC Consultation [12] was the widely different regulatory approaches to gambling among different Member States in the European Union. It is estimated european online gambling regulation there is considerable illegal market for online gambling in the EU, and to European Commission estimates, for each licensed online gambling website world-wide, there are more than five unlicensed web-sites offering online poker or sports betting.

Enforcement of the law poses even bigger challenges european online gambling regulation to jurisdictional issues, as experienced in other areas of Internet regulation such here defamation and pornography.

The rationale for the regulation of gambling generally encompass many objectives, which include ensuring fair gambling and open practices, collection of duties and taxation, and protection of children and other vulnerable persons from the dangers of gambling. In the United Kingdom, the stated licensing objectives as per the Gambling Act include the prevention of gambling as a source of crime, ensuring that gambling is conducted in a fair and european online gambling regulation way, and the protection of children and other vulnerable click. The main focus, of this article, however, is the issue of protection of children and young people from the potential dangers of online and problem gambling.

The article will consider the special characteristics of online gambling and examines how it differs from traditional offline gambling, and argues that online gambling calls for a more robust and learn more here form of regulation in order to protect children and other vulnerable people.

Although there is not a huge literature base currently available to analyse the pathological responses to online gambling per sefree slot games 4 fun is some data available to justify further regulatory responses in light of the potential risks involved in Internet gambling.

The protection of children and other vulnerable groups from gambling addiction and problem gambling is a priority for a number of legal, policy and social reasons. The article will highlight the lacunae in the existing regulatory framework in the UK, and puts forth solutions that can be implemented at domestic level, which could also be used as a good practice model internationally.

The article also please click for source that international co-operation in this respect is required, although this will take time and concerted efforts from the international community.

The nature of gambling itself demands a broader approach to address the challenges, and due consideration ought to be given to its social, economic and psychological aspects, particularly in relation to von casino uniforms canada von. Whilst the UK regulatory model addresses some of these already, loopholes still remain, as evident from the rising prevalence of online and problem gambling, particularly from the perspective of children and other vulnerable groups.

The article will also argue that regulatory reforms should harness the use of technology in order to achieve a workable and effective model for online gambling regulation. There european online gambling regulation a number of well known gambling operators that provide online gambling services in the United Kingdom. Most of these online providers are not UK companies and provide their service from abroad, often from non-EU countries and are therefore not regulated by the UK Gambling Commission, as discussed in more detail below [20].

This creates significant problems in relation to online gambling regulation, and therefore, it is pertinent to firstly examine the current UK regulatory model in light of its efficaciousness in regulating online gambling services provided from abroad and conduct business with consumers based in the U. The main legislation that governs gambling in the UK is the Gambling Act The Act is implemented through bodies established under the Act such as the Gambling Commission [21]which works in partnership with local licensing authorities.

The Gambling Commission is an independent non-departmental public body, sponsored by the Department for Culture, Media and Sports. However, the remit of the Gambling Commission with respect to online gambling is currently fairly severely restricted because of the British-based equipment requirement. This is because an operator european online gambling regulation not require a license to run a remote gambling service to offer business in the UK if their gambling equipment is based outside Great Britain.

This practically eliminates a number of online gambling operators offering services in the UK from the remit of the Gambling Commission, owing to the fact that there are currently a number of operators who do not use any equipment within the UK [25]. As at 31 Marchthere were european online gambling regulation gambling activity UK licences held by operators.

The actual number of operators offering online gambling services in the UK is european online gambling regulation higher. However, those operators who are based in European online gambling regulation countries and white-listed countries can advertise european online gambling regulation offer their services in the UK, provided they do not use any gambling equipment in the U.

The problems with this model are discussed in further detail later in the article. The Gambling Commission works with the Responsible Gambling Strategy Board RGSBwhich advises on research, education and treatment programmes needed in order that problem gambling is understood and researched. Online gambling provisions within the Gambling Act are currently under review following the Government announcement in that all remote gambling providers will be required to obtain a licence from the Gambling Commission to offer services in the UK.

These click to see more, once implemented, will shift the focus from the point of supply to the point of consumption, making remote gambling providers compliant with UK gambling laws if they wish to target consumers based in this country. This should ensure that all providers will also pay the UK remote gaming duty and pay a licence fee, and from a consumer point of view, the objective is that there should be consistent standards of protection irrespective of european online gambling regulation gambling website they visit.

As it currently stands, the focus of the proposed regulatory changes appears to focus mainly on addressing taxation issues and thereby generating more revenue, than other specific issues such as the protection of children and vulnerable people.

Protection of children and other vulnerable persons from the dangers of gambling is one of the main licensing objectives found in the Gambling Actand accordingly, one of the read more primary objectives of the Gambling Commission.

This figure relates to adults over 16 years of age, which clearly is an indication that the existing model is not working well. As will be discussed further in european online gambling regulation article, there is evidence to suggest that young people are particularly vulnerable to problem gambling, and therefore it calls for robust measures to be undertaken in order european online gambling regulation protect them.

At this point it is not certain whether the proposed changes to legislation will address these european online gambling regulation at a required level, failing which it will be a missed opportunity from a child and young people protection perspective. The minimum legal age for gambling is 18 in the U. It is an offence to invite, european online gambling regulation or permit a european online gambling regulation to gamble.

In traditional offline casinos, this was not much of a problem as staff or those responsible have more than one way of verifying age with some degree of authenticity.

However, in the online environment, this is not always possible. The anonymity the Internet offers makes this harder to detect. In some cases, it is also found that verification procedures come at a later stage than it prudently ought to, for instance, companies asking for customer identification documents after the wager is placed, but prior to withdrawal in the event learn more here winning and the information is often not requested if they lose.

Although this does not pose a financial risk as such in the event of winningit still leaves the opportunity to gamble open to children and young people. The potential risks of such gambling, albeit with no immediate financial implications, are discussed read article more detail below.

However, if captain jack online casino review child actually wins there is no requirement on the part of the child to return the winnings, but the stakes used must still be returned to the child section 83 3.

Chambers and Wilcox continue reading out that this is a lacuna, as it offers children a financial incentive to gamble. As it is illegal anyway for a young person to gamble [44]the online casino game that enables them to keep the prize in the event they win through what is essentially an illegal actdefies logic.

It is an offence under section 45 of the Gambling Act to invite, cause or permit a child or young person to gamble. The Codes have specific sections with respect to the advertising of gambling products and services. This is significant in light of the role of the Internet in digital marketing, and particularly in light of the significance of Internet advertising for online gambling.

A related issue is the availability of online gambling applications on social networking sites, which offer free gambling games using play money. These are typically third party applications, such as Texas Holdem Poker, Zynga, promoted through the pages of social networking sites such as Facebook. Whilst european online gambling regulation is usually no real money involved in these, and therefore no real monetary gambling, there is evidence that this will encourage children and young people to form a perception that gambling is harmless fun, and eventually european online gambling regulation to experimentation with real monetary forms of gambling.

Remote advertising is a problematic area in other respects too. For instance, in the case of that is broadcast by television, the provisions of Part 16 Advertising of the Code will only apply if the broadcaster is european online gambling regulation under the jurisdiction of the U.

Similarly, where advertising constitutes an european online gambling regulation society service, these provisions only apply where the provider is either established in the United Kingdom or outside the EEA. Therefore, a more uniform approach for advertising at EU level, with a view to harmonising the relevant provisions among EEA states has very clear advantages and ought to be seriously considered. There are a range of factors that casino game online the regulation of online gambling problematic when compared to traditional casino based gambling.

The following section considers the key characteristics of online gambling that render it different from traditional gambling, and as a result, makes it more challenging for the purpose of the protection of children and young people. The Internet has raised new challenges for the traditional regulatory model for gambling, not just because of its borderless nature, but also because of certain characteristics that are unique to online gambling.

The harm caused by excessive gambling is well documented, and it is not within the scope of this article to re-visit this. Online gambling aggravates the problem further, resulting in an even higher risk of harm, especially for children and young people. The special characteristics of online gambling have been noted both in case law of the CJEU, and also more generally by various academic literature as discussed below. The Court of Justice has made clear that online gambling has special characteristics compared to traditional gambling in a number of cases.

There are also academic studies that suggest that online gambling may be more harmful to players, especially for young persons, when compared to traditional casino gambling. The increasing availability of illegal pornography and the ability for end users to act as distributors of content in the online environment resulted in substantial changes to the way pornography is regulated in the UK [58].

Similarly, the free and easy availability of adult pornography for children also has raised a number of issues, including european online gambling regulation concern that over exposure may be detrimental to their best interests.

Nevertheless, in order to form a better understanding of the issues relevant to online gambling, a brief discussion of how the Internet fuels addictive gambling behaviour merits consideration. Online gambling sites do not offer the european online gambling regulation level european online gambling regulation monitoring or supervision as in a traditional offline casino.

For instance, in the traditional gambling environment, responsible members european online gambling regulation the gaming industry will try to prevent children and other vulnerable individuals such as problem gamblers, alcohol or drug abusers from gambling in a casino.

Specifically with respect to children, whilst the Gambling Act prohibits children from gambling, it is not possible to always ensure that this does not happen in the online environment. This european online gambling regulation particularly the case when the websites are accessed through portable devices minimum deposit pokerstars net as Internet enabled mobile phones, due to their largely unsupervised nature.

As discussed earlier, online casino dealer job interview is a mandatory age verification requirement under the Gambling Actalthough this is not always fool proof and there is no guaranteed way to ensure that everyone who accesses a gambling website is not a child.

The Gambling Commission Industry Statistics reveal that only 73 individuals were unable to prove their age when challenged when attempting to gamble online. Click relation to online gambling providers from european online gambling regulation countries which are not regulated by the Gambling Commissionthere is currently no such requirement, and therefore data of those children who used these websites may never become available.

The risks from non-regulated foreign websites are generally higher for children and other vulnerable groups as discussed further in the article. As Griffiths rightly identifies, the anonymity of the Internet enables the gambler to engage in gambling without worrying about social stigma, and also provides the added comfort that when losing, nobody will actually see the face of the loser.

Chance of winning money is one of the key motives for gambling and the basis for placing a stake. There is some evidence to support the view that people are more likely to gamble using electronic cash than real money.

Social networking sites such as Facebook provide numerous slot machine and poker games using virtual money. According to a study by Consumer Reports, it is estimated that there are 20 million minors who use Facebook in the United States, of which 7. Apart from the opportunities to win large amounts of virtual money thus giving a false impression of the link of real gambling using real moneyby the very nature of social networking sites, winning also attracts peer recognition and other rewards.

There are also other factors that render online gambling different from offline gambling [75]. Disinhibition in the Internet environment, for example, leads to more money being gambled, arguably increasing the risk for the vulnerable. Problem gambling is widely as a public health issue, and it has been identified that approximately 0.

However, the Internet has raised further challenges for problem gambling, and a number of empirical studies have reported that problem gambling is more prevalent among Internet gamblers compared to traditional gamblers.

European online gambling regulation

The online gambling environment in Europe is changing constantly, particularly from a regulatory point of view. Here is a short overview of the latest regulatory updates from several European countries and what effects these could have on the overall online gambling industry environment. The Czech Republic is among the countries in Europe to be the closest to opening its online gaming market to international operators. At present, what are casinos are five online gambling operators to have received licenses from the local gambling authorities.

The proposal is also concerned with another important matter — the protection of residents from problem gambling behavior and gambling addiction. Under the bill, a national exclusion database is to be set, allowing individual customers to block themselves from gambling online.

As any other such legislation, the one proposed by Czech lawmakers also contains provisions regarding the way the country is to deal with unlicensed operators, once and if the bill comes into effect. The Czech Ministry of Finance would be given the authority and responsibility to prevent any operators from providing their services by blocking their websites.

What is more, payments from and to unlicensed european online gambling regulation would be banned. If approved by the official, it is not expected to come into effect before European online gambling regulation 1, Regulatory efforts have also been introduced in Poland. At present, residents can here play the popular game at continue reading casinos.

Private home tournaments and Internet poker options are strictly prohibited and are subject to heavy fines european online gambling regulation imprisonment in certain cases. This is why it would not be such a big surprise if no further action on the legislation is taken.

Earlier in May, there were regulatory news from France as well. One of the amendments called for the local gambling regulator — ARJEL, to be authorized to european online gambling regulation partnership agreements with other European Union member states and jurisdictions within the European Economic Area in order to be able to share liquidity for online poker.

European online gambling regulation the proposed changes come into effect, ARJEL would be given the authority to provide gambling operators with Article 21 gaming licenses with the opportunity to allow their players to take part in verified circle games of poker with fellow players from countries within the EU and the EEA. Although the proposal is aimed european online gambling regulation boosting proceeds from online poker operations, certain obstacles may prevent the success of any future shared liquidity agreements due to the fact that the French tax european online gambling regulation differs in certain aspects from the ones in other EU and EEA countries.

For instance, taxes from cash games are deducted pre-flop and on the flop, the turn, and the river. Although the proposed changes seem to be favored by the French Senate, they need to overcome a click to see more of other legislative hurdles in order to come into effect.

What is more, Portugal and Spain are the first countries with regulated markets that may european online gambling regulation interest in sharing online poker liquidity with France. Tax changes have always been among the regulatory amendments to create the biggest controversies.

Last month, the Greek government voted in favor of the latest proposed financial bill, which included changes in the way online gambling operators were taxed. It is mobile casino 32red important to european online gambling regulation that the new tax system would apply to all 24 temporary licensees to be operating within the country.

What is more, the temporary licenses of the 24 international gambling operators are to be replaced by permanent ones. Friday, October 6, June 5, 6: Czech Republic The Czech Republic is among the countries in Europe to be the closest to opening its online gaming market to international operators. Poland Regulatory efforts have also been introduced in Poland. France Earlier in May, there were regulatory news from France as well. Greece Tax changes have always been among the regulatory amendments to create the european online gambling regulation controversies.

Robert Johnson Robert Johnson is an experienced web author and blogger. He has over three years of experience as a freelance journalist and writer. CasinoNewsDaily is a media focused on providing daily news from the casino industry as well as in-depth gaming guides.

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