The jungle of online gaming

MORE PROTECTION needs to be provided for gaming consumers when it comes to online gambling, according to Stefano Mallia, a reporter for an EU paper. He also thinks that the online gaming sector is “a jungle.”

“In preparation for my work to draft the EESC’s (European Economic and Social Committee) opinion on this important industry I had the opportunity to acquaint myself with what is being offered online. Although I am not a gambler I can tell you that it’s a jungle out there. There is total confusion and it’s very difficult to know which we sites are legal and which are illegal,” Mr Mallia told a public hearing on online gambling in Brussels.

A consultation document has been published in regards to the Commission considering introducing some kind of EU-wide regulation on online gambling, particularly with regards to consumer protection. Currently, the sector is regulated through national regimes – something which countries like Germany favour while others like Malta and the UK resist, as they believe the sector should evolve like any other EU business activity.

However, while supporting the “liberal” business model adopted by Malta, Mr Mallia said consumers should be protected. “One of the main challenges I am facing in the drafting of this Opinion is to keep a balance between maintaining the status quo and a total liberalisation of the market,” Mr Mallia was quoted in The Times at the end of the hearing.

“At the moment most member states want to maintain national control of their individual markets. On the other hand, the on-line gambling operators want a total liberalisation of the market whereby if, for example, they have a Maltese licence they are able to operate anywhere in the EU without needing any other additional licence.

“The result is that we have considerable confusion in the market which is also allowing the black market to flourish.”

This situation, he said, was leaving consumers seriously exposed to fraud and abuse. “So one of the proposals I am pushing is to have an EU wide minimum level of consumer protection legislation that all operators licensed in the EU abide by.”
Malta, together with the UK, is considered to be a Mecca for hosting online gambling operators as a result of its favourable tax regime.