Gambling analysts have pegged Asian markets to be a hotbed for the next online gambling boom. However, European countries are also looking to make changes to their existing laws in order to address the growing popularity of online gambling and to ensure that their citizens are protected from unscrupulous operators while at the same time making sure their governments provide a regulated market which they can capitalize from through online gaming taxes.
Following Sweden’s introduction of a liberalized online gambling market, many European countries are now debating if they could adopt a similar approach. There are also some European countries that are introducing changes in relation to how online operators should operate in their respective jurisdictions.
Countries such as the United Kingdom, the Netherlands and Sweden are starting the year by announcing a series of proposed reforms. But, despite the different regulatory paths these countries are taking, they appear to be heading in a common direction: liberalization.
Benefits of A Liberalized Market
A regulated market can benefit a country in a number of ways. First, it cultivates competition. As more online operators do business in the country, players are provided with a vast range of choices. Competition removes monopolies and allows the country to attract more international companies. Second, revenue opportunities are bigger.
The country can introduce a tax regime that would give them more benefits and would ensure domestic firms are not treated unfairly. Lastly, the implementation of clear regulations removes the grey areas and thus ensures that gambling firms operate within the bounds of law.
Exciting Year Ahead for Sweden
This year will be a remarkable year for the Swedish online casino industry. The government has decided to bring in a liberalized gaming environment and put a full stop to the monopoly held by state-owned Svenska Spel. This means that Swedish players are in for bigger and more exciting things. The country is working hard to be among Europe’s top iGaming powers. This would mean more innovative online casino games coming to the market alongside other online gaming breakthroughs, considering that some of the leading gaming developers in the world like NetEnt and Evolution Gaming are based in the country.
A Long Road for Netherlands’ Remote Gaming Bill
However, despite the clear benefits a country can get from a liberalized gambling market, some European countries are still hesitant to fully embrace it. Take for example the Netherlands. The country’s gambling scene is currently dominated by state-owned company Holland Casino.
The Dutch government had traditionally been tough towards foreign-licensed online casinos, with local players only being allowed to register with domestic operators. Although a Remote Gaming Bill has already been proposed, it’s taking quite a long journey with the Dutch senators.
With progress towards liberalization being so low, regulatory changes are not expected to come into force until 2020 at the earliest. So Holland casino sites will still control most of the country’s online scene until the government decides to make a shift towards liberalization.
UK Could Prohibit Credit Card Gambling
While countries such as Sweden and the Netherlands want to open the market to offshore markets and bring them under their regulations, the UK government adopts a different stance. The country is instead keen on restricting usage of online gambling activities in 2019. A ban on credit card transactions at gambling sites is currently up for discussion following concerns from campaigners. The UKGC has it hands full as it looks to bring down problem gambling numbers and prevent gamblers from spending money they don’t really have.
The UKGC is pushing for credit card transactions to be stopped at gambling websites. Among other changes that the Commission is planning to implement this year is the imposition of an obligatory levy to gambling firms licensed in the UK.
The government is also introducing an increase in taxation for online operators. The rate now stands at 21 percent up from the previous rate of 15 percent, making it the highest online gambling tax rate surpassing even Sweden. While we will wait and see how that increase will affect the revenue of gambling operators, one clear benefit for the UK government is that it can now boost its tax collections that can be used to provide assistance to other areas.