Gambling in Services Directive: what does EU Parliament really fear? - Sunday 27th of November 2005
The Internal Market and Consumer Protection (IMCO) committee of the European Parliament (EP) decided today to exclude gambling services from the scope of the Services Directive.
This vote raises the European Betting Association (EBA)s greatest concerns. The EP seems ready to caution the protectionist gambling models existing in several Member States and to maintain the legal status quo of a system, which in most Member States is not only in breach with Internal Market rules but also completely obsolete considering the recent technological developments on the market.
The gambling market knows no borders. It is indeed subject to globalisation and to fast technological developments (Internet, SMS, interactive TV, etc.).
In this context, it is naive today to pretend that State monopolies and market access prohibitions for private Community operators will address in a responsible and sustainable way consumer protection, prevention of criminal infiltration and fight against money laundering.
On the contrary, this position favours the development of a parallel market. If the consumers are not given the possibility to access on their national market competitive Community products and services, they will look for better offers and new products elsewhere. The greatest risk is that, while searching for alternatives, the consumers will not be able to make distinctions between EU operators who can demonstrate a strong track-record of social responsibility and those offering similar services from off-shore jurisdictions which are subject to little or no social responsibility requirements. A competitive market does not mean that it cannot be regulated either at national level or, even better, at EU level.
What is the EU looking for today? What does the Parliament fear?
The organisation in Europe of a fair and regulated market cannot only save a European gambling industry, but it can also provide a balanced and secured offer to the consumer, prevent tax revenues going off-shore and have a real impact on associated services such as media, tourism, sports and charity, both in terms of employment and economic growth.
Didier Dewyn, Secretary General of the European Betting Association, comments that: "If the European Parliament would address the gambling issue seriously, it would raise real questions such as: Which countries have introduced by law age limits to gambling? How much do State monopolies spend each year to advertise and promote their games, compared to the amounts spent on gambling prevention? These are the real questions that the Parliament refuses to tackle by excluding, without real justifications, gambling services from this Directive".
For these reasons, EBA hopes that the final position of the Parliament in first reading in Plenary, due to take place in January 2006, will not confirm the IMCO vote.
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