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март 18, 20246 min read

Does the EU Allow Online Gambling?

Online gambling has become a business generating billions of dollars. Europe has been quite accommodating, easing regulations in most EU-member countries.

 

The gambling habits of people around the world changed dramatically over the course of the past several years. The pandemic forced many people to stay home and embrace online betting. In turn, the less popular branch of gambling becomes a more popular form of betting especially among younger players. Various countries, both inside and outside of Europe, have legalized online casino games.

 

As of 2024, the revenue in European online gambling market is expected to reach $46 billion. Projections indicate that the market is expected to grow further, anticipated to reach a substantial $56 billion by 2028. This growth represents a notable Compound Annual Growth Rate (CAGR) of 7.6% during the period 2023 – 2028. This tendency is driven by several key factors, including the escalating demand for convenient gambling, the widespread availability of online games, and the ease of access offered by online gambling in comparison to traditional alternatives.

 

In the next paragraphs, we will be examining the online gambling regulatory landscape in Europe, and we will identify which countries have a more favorable environment for this business.

 

Is online gambling legal in the EU?
Despite the common belief that all European Union members share a unified legislative framework, all of them have their regulations regarding the industry and are allowed to draw gambling laws that best fit their views on games of chance.

 

Many EU nations permit various forms of online gambling. While some countries authorize all types of gambling services, others restrict them to specific categories like betting, poker, or casino games. In several European regions, monopolistic setups for online gambling have been implemented, either operated by a state-controlled entity or a private company that has exclusive rights.

 

The legal framework of online gambling in EU member states features a variety of regulatory structures. The Court of Justice of the European Union (CJEU) has issued several rulings assessing the alignment of national regulatory systems with EU law.

 

Germany
The German Interstate Treaty on Gambling referred to as ISTG 2021, has allowed private gambling operators to obtain licenses for sports betting, virtual slot machines (online simulations of traditional slots), and online poker since 2021. However, different rules apply to virtual versions of specific casino games like Blackjack and Roulette, as well as live broadcasts of terrestrial casino games with online participation options. Licensing for these particular online casino games is governed by separate laws in individual Federal States, which can decide whether to grant licenses to private operators or restrict them to state-owned entities. However, when issuing licenses for online casinos to private operators, Federal States face limitations.

 

It’s important to note that not all Federal States have finalized their decisions on whether private operators can apply for online casino game licenses. However, Schleswig-Holstein and North Rhine-Westphalia have already announced their plans to issue licenses to private operators. Schleswig-Holstein intends to grant four licenses, while North Rhine-Westphalia plans to issue five.

Spain
Spain’s gambling regulations have undergone several revisions and the most recent changes allow the operation of online casinos in the country. The Spanish National Gaming Commission grants licenses to gaming operators who meet the requirements and criteria. Furthermore, there are two types of licenses – general license, which permits the use of approved games modes and single license, which allows the use of a specific regulated gambling modality. It is important to note that single license can be granted only to operators that already have the general one. Acquiring the permit for gaming operations in Spain requires strict compliance with a variety of legal, technical, and financial requirements, as well as the fulfillment of various obligations by gaming operators. As a result of this legal framework, Spanish residents have the opportunity to register, place bets, and enjoy casino games on any of the licensed gambling companies within the country.

The Netherlands
Starting from April 1st, 2021, the Netherlands officially legalized online gambling services, permitting Dutch players to engage in casino games, slot machines, and online sports betting. Players are advised to choose casino platforms that offer Dutch language support, accept payment methods favorable to the Netherlands (such as iDeal and Dutch bank transfers), and provide specific customer support tailored to the country’s needs.

 

Local and foreign operators have the opportunity to secure a gambling license in the Netherlands. However, they will also face substantial financial obligations, with taxes ranging to 29% of their gross revenue. Additionally, they will be required to contribute 1.5% of their earnings to support the local regulatory body and allocate 0.5% towards anti-gambling programs.

France
France permits various forms of gambling, overseen by three key regulatory bodies. Pari Mutuel Urbain manages horse racing, Francaise des Jeux administers betting games and lotteries, and ANJ governs online gambling. In 2009, responding to European Union requests, the French government introduced new legislation regarding online gambling. By 2010, they had officially legalized three online gambling categories: sports betting (including live betting, fixed odds betting, and pool betting), horse racing betting (limited to pool betting), and poker. Operators seeking to offer these services to French residents must obtain licenses from ANJ. Currently, licenses are not granted for casino games, spread betting, or exchange betting.

 

Italy
Italy’s gambling regulations stand out as less-restrictive compared to many other European countries. In 2006, Italy passed a law allowing sports betting in physical locations and online, while other European Union countries were tightening restrictions on gambling.

 

Important modifications were made to this legislation, including a notable change in 2011, which allowed licensees to extend their services to poker and casino games. Consequently, Italians have variety of platforms to choose from, offering various forms of gambling.

 

Considering that Italy possesses third place for population in Europe, the gambling market is extremely attractive for iGaming casino providers.

 

In addition, Italian players do not pay taxes on their winning, as operators shoulder tax responsibility through revenue taxes and licensing fees.

 

United Kingdom
Online gambling is both legal and well-regulated in the UK under the authority of the UK Gambling Commission (UKGC). Online casinos enjoy immense popularity in the UK due to their convenience and the extensive array of real-money games and sports betting options they offer.

 

When it comes to financial transactions, UK players predominantly favor Visa direct debit cards, PayPal, Skrill, Trustly, and Paysafecard for their reliability and security. For a seamless and safe gaming experience, it’s highly recommended that UK enthusiasts choose casinos licensed by the UKGC.

 

However, there’s a growing trend toward crypto casinos in the UK. This shift can be attributed to the lengthy ‘Know Your Customer’ (KYC) verification processes, restrictive game and deposit limits, and reduced RTPs in slot game offerings, all of which players commonly encounter in UK online casinos.

Conclusion
Gambling has deep historical roots in Europe, spanning thousands of years, and remarkably, its essence remains largely unchanged in the modern era. The primary evolution has occurred in the way individuals wager on sports outcomes. This article provided a brief overview of the EU online gambling market.

 

Furthermore, it is noteworthy that a growing number of European Union countries have adopted licensing systems that allow multiple iGaming operators to offer their services within the market. Under EU law, no single system is favored over another, promoting a diverse and competitive landscape within the industry.

FAQ section:

 

Is it legal to gamble in EU?
Every country has a different legal framework when we speak about online betting. Several EU countries, such as Spain, the Netherlands, France, Italy, and the United Kingdom, have legalized and regulated online gambling, permitting operators to offer a range of casino games, sports betting, and other gambling services to residents. These countries have implemented specific laws and regulatory bodies to oversee the industry, ensuring compliance with legal, technical, and financial requirements for gaming operators.

 

Does France allow online gambling?
Yes, France does allow online gambling, but it is subject to specific regulations and oversight by regulatory bodies. In 2010, France officially legalized online gambling for certain categories, including sports betting, horse racing betting (limited to pool betting), and poker. These forms of online gambling are regulated by the Autorité Nationale des Jeux (ANJ), which governs online gambling activities in France.

 

Is online gambling legal in the Netherlands?
Yes, online gambling is legal in the Netherlands as of April 1st, 2021. The Dutch government officially legalized online gambling services, allowing Dutch players to engage in various forms of online gambling, including casino games, slot machines, and online sports betting. Operators, both local and foreign, have the opportunity to secure a gambling license in the Netherlands to offer these services to Dutch residents.

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