EU online gamblers are left exposed to inadequate and unequal levels of consumer protection based on a recent study carried out by the European Gaming and Betting Association (EGBA). The study showed that all EU member states barring Denmark have failed to fully implement consumer protection guidelines introduced by the European Commission.
The study commissioned by the EGBA and published by City University London also discovered major gaps in the implementation of key provisions of the European Commission’s Recommendation 2014/478/EU.
The full implementation of the policies was supposed to be evaluated by the Commission in January of last year but it failed to do so.
Among provisions not fully implemented in all member states are player identification requirements, social responsibility measures and protection of minors. The Commission thus failed to achieve its primary aim of encouraging a uniform high level of protection for all Europeans, the study found.
Player Identity Requirements
The study showed that while online gambling account requirements were imposed in 25 countries player identity verification was conducted in only 22 member states. Temporary accounts are also allowed in 17 jurisdictions with each member state imposing varied conditions as to the duration and financial limits involved.
A standardized electronic identification system used for verifying a player’s identity is present in only 4 countries while identity verification is triggered by anti-money laundering rules in 5 countries.
Preventing Minors from Gambling
While all member states impose a minimum age limit for gambling, only 22 countries have introduced a uniform age restriction at 18 years old for all forms of online gambling. In other countries, age restrictions are based on the type of gambling activity.
Only 13 countries require operators to display a “no underage gambling” sign on their advertisements. No such requirement is imposed in 12 member states aside from certain content restrictions. In 8 jurisdictions, national authorities are sponsoring educational activities aimed at keeping minors away from gambling.
Social Responsibilities
Under the social responsibilities measures recommended by the commission, 23 countries currently require online gambling firms to offer voluntary exclusion facilities for online players, while 5 jurisdictions do not impose the particular requirement.
National self-exclusion registers are up and running in only 14 countries and operators are allowed access to the registers in all these countries.
Self-exclusion conditions are also varied in each member state, with 12 countries allowing only the affected players to initiate such move. In 11 countries, third parties are permitted to initiate self-exclusion while in other jurisdictions; operators can exclude online gamblers in accordance with social responsibility measures.
Definitions of self-exclusion adopted by the Recommendation are not clearly followed by all member states; durations also vary significantly between different jurisdictions.
Players can cancel self-exclusions in 11 countries, but are required to meet certain criteria before doing so. In all member states, players who are on self-exclusion are not automatically referred to treatment centres or health organizations.
No Uniformity Amongst EU Countries
Denmark appears to be the only jurisdiction to have fully implemented the Recommendation’s principles, as member states make different interpretations, leading to varied levels of consumer protection for each country.
In many countries, regulations are stricter, while in other jurisdictions, they are more lenient or do not exist at all. The Netherlands continue to prohibit online gambling, while specific regulations for the sector are currently absent in Slovenia and Ireland.
A Cooperation Arrangement currently exists between regulatory authorities in EU countries in relation to online gambling services, hoping to strengthen administrative cooperation among the signatories. But all member states are not obliged to participate in such agreement.
Failure to achieve a uniform implementation of the principles is attributable to the voluntary and non-binding nature of the guidelines, according to the study. While all member states take part in international forums and open dialogue to share their opinions and experiences as well as obtain advice from non-EU counterparts, EU countries lacked consensus in coming up with effective measures to ensure full protection for all Europeans.
Mandatory Rules Needed
The study is calling for mandatory rules to secure a uniform high-level of protection for online gamblers. The EGBA is urging the European Parliament and European Commission to consider the findings and deal with them promptly.
EGBA Secretary General Maarten Haijer said current guidelines introduced across EU member states are insufficient and mandatory rules are required for an inherently borderless digital sector like online gambling.