# EUR-Lex - 52012DC0596 - EN

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# 52012DC0596

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Towards a comprehensive European framework for online gambling /* COM/2012/0596 final */**

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TABLE OF CONTENTS

1.         Introduction. 3

2.         Key
challenges and proposed responses. 4

2.1.      Compliance
of national regulatory frameworks with EU law.. 5

2.2.      Enhancing
supervision, administrative cooperation and efficient enforcement 7

2.2.1.     Establishing
appropriate supervision and control in Member States. 7

2.2.2.     Fostering
cross-border administrative cooperation. 8

2.2.3.     Ensuring
efficient enforcement at national level 8

2.3.      Protecting
consumers and citizens. 10

2.3.1.     Working
towards a high level of protection across the EU.. 10

2.3.2.     Ensuring
the protection of minors. 11

2.3.3.     Enhancing
responsible advertising. 11

2.3.4.     Preventing
problem gambling or gambling addiction. 11

2.4.      Preventing
fraud and money laundering. 13

2.4.1.     Extending
anti-money laundering measures. 13

2.4.2.     Tackling
identity theft and other forms of cybercrime. 13

2.4.3.     Safeguarding
the security of gambling equipment 14

2.5.      Safeguarding
the integrity of sports and preventing match-fixing. 14

2.5.1.     Fostering
cooperation between stakeholders. 15

2.5.2.     Developing
anti-match fixing measures. 15

2.5.3.     Ensure
effective deterrence of match fixing. 15

2.5.4.     Promoting
international cooperation. 16

3.         Conclusions. 16

1.
Introduction

Online gambling[1] is a fast growing service activity in the
EU, with annual growth rates of almost 15%[2].
Annual revenues in 2015 are expected to be in the region of €13 billion, compared
to €9.3 billion in 2011. This would represent a total growth rate of almost 40%[3].
The economic significance of the sector is also shown by the high level of
innovation of the EU industry and the increasing amount of tax revenues
generated in the Member States.

The fast pace of online technologies
development in recent years has facilitated the provision of gambling services
through diverse remote distribution channels. These include the internet and
other means of electronic or distance communication such as mobile phone
technology or digital TV. The nature of the online environment means that
gambling sites may operate in the EU, outside any form of control carried out
by regulators within the EU. Consumers in Europe also search across borders for
online gambling services which, if not properly regulated, may expose them to significant
risks. The extensive range of offers and the rising level of demand for online
gambling services pose a number of challenges when it comes to ensuring the
proper implementation of public policy objectives at the national, EU and
international level.

In 2011, the Commission adopted a Green Paper
on online gambling in the Internal Market[4]. Through that public
consultation it sought to obtain a full picture of the existing situation, to
facilitate the exchange of best practices between Member States and to
determine how, in due consideration of their public policy objectives and
without undermining the internal market, the differing national regulatory
models for gambling can coexist and whether specific action may be needed at
the EU level to ensure greater coherence. The responses to the consultation differ
both in terms of the content and the instruments that should be used for EU
initiatives. Overall, it does not appear appropriate at this stage to propose
sector specific EU legislation. However, there was an almost unanimous call for
policy action at EU level and the responses allow for a clear identification of
the key priority areas where action is required.

This Communication, together with the
accompanying Commission Staff Working Document[5], identifies the key
challenges posed by the co-existence of national regulatory frameworks within
the Internal Market. It also seeks to propose answers to these challenges in
the form of actions to be taken both at the national and EU level. The Staff
Working Document provides more detailed information resulting from the analysis
of the responses to the Green Paper, the proposed initiatives in this Action
Plan, as well as relevant data. The Commission has drawn from good practices in
the EU and Member States in order to propose responses to the varied range of
issues related to online gambling.

In view of the developments regarding the
offer and promotion of online gambling in the EU greater clarity is needed. This
Communication proposes a combination of initiatives and relevant measures
covering a range of issues, seeking to enhance legal clarity and establish
policies based on available evidence. These actions, fully taking into account
the principles of subsidiarity and proportionality, highlight five priority
areas to address the challenges in the EU:

-           compliance
of national regulatory frameworks with EU law

-           enhancing
administrative cooperation and efficient enforcement

-           protecting
consumers and citizens, minors[6] and
vulnerable groups

-           preventing
fraud and money laundering

-           safeguarding
the integrity of sports and preventing match-fixing

The proposed actions focus on online
gambling services and issues linked to the free movement of services (Article
56 TFEU) and the freedom of establishment (Article 49 TFEU) in light of the
growth of online gambling in the EU and the well-developed cross-border supply
of such services. However, a number of the actions are pertinent to both online
and offline gambling services[7].

Finally, this Communication responds to the
Council's conclusions on the framework for gambling and betting in the EU Member
States[8],
a series of Presidency progress reports[9],
the resolution of the European Parliament on online gambling in the Internal
Market[10]
and to the Opinion of the European Economic and Social Committee[11].

2.
Key challenges and proposed responses

While Member States are in principle free
to set the objectives of their policy on games of chance and to define in
detail the level of protection sought, national regulatory frameworks have to
comply with EU law and internal market principles and rules. Ensuring
compliance of national law with the Treaty is therefore a prerequisite of a
successful EU policy on online gambling.

In view of the type of challenges posed by
the development of online gambling and their implications for each Member State it is not possible for Member States to effectively address these challenges alone
and to provide individually a properly regulated and sufficiently safe offer of
online gambling services. The Commission's actions on administrative
cooperation will help Member States to better understand each other's
regulatory frameworks, share good practices and improve convergence in tackling
common problems. In addition, greater and long term collaboration between
Member States would enhance the EU's capacity to more effectively tackle the
international dimension of online gambling.

Improving the protection of consumers and
the regulatory environment is in the interest of all Member States and all stakeholders. The development of an attractive range of legal gambling
opportunities is also key to effectively prevent consumers from going on
unregulated sites. Therefore, action at EU level should aim at adequately
protecting all citizens in Europe within a balanced regulated environment. In
light of this, the Commission proposes to undertake action, together with the
Member States, designed to offer a common and high level of protection to all
European consumers and citizens, including minors and vulnerable groups. These
proposed actions seek to address the risks emanating from unregulated markets
and organised crime, such as fraud and rigging of events.

Overall, the initiatives are expected to
contribute to an improved framework governing online gambling services in the
EU and pave the way for strengthened cooperation between Member States'
regulatory authorities.

The
Commission will

·
In 2012 establish an expert group on gambling, composed
of representatives of Member States, to exchange experiences and good practices
as well as to provide advice and expertise on the preparation of EU
initiatives.

2.1. Compliance of national regulatory frameworks with EU law

Online gambling regulation in Member States
is characterised by a diversity of regulatory frameworks. Few Member States
prohibit the offering of games of chance on the internet, either for all games
or for certain types, such as poker and casino games. In some European
jurisdictions, monopolistic regimes (offering online gambling services) have
been established. These are run either by a state-controlled public operator or
by a private operator on the basis of an exclusive right. A growing number of
Member States has however established licensing systems thus allowing more than
one operator to offer services on the market.

In response to the societal, technological
and regulatory challenges, a significant number of Member States has recently reviewed
their gambling legislation to take account of new forms of gambling services. These
regulatory changes have led to an increase in the offer of gambling services by
operators authorised in an EU Member State over the last few years and to
considerable differences in national regulations. There has also been a development
in cross-border offers, often not authorised under national rules in the recipient
  Member State. Compliance of these national rules with the Treaty has been
challenged in front of national courts and questions on the interpretation of
EU law have been referred to the Court of Justice of the European Union (CJEU).

National regulatory systems must respect EU
law. In a series of judgements, the CJEU has provided general guidance on the interpretation
of the fundamental freedoms of the internal market in the area of (online)
gambling, taking into account the specific nature of gambling activities, with
a view to enabling national courts to assess the circumstances under which
restrictive national gambling laws are justified on grounds related to the
general interest.

The CJEU has confirmed that the provision
and the use of cross-border gambling offers is an economic activity that falls
within the scope of the fundamental freedoms of the TFEU. In particular, Article
56 TFEU prohibits restrictions on the freedom to provide services to recipients
in other Member States. National rules which prohibit the provision of gambling
services authorised in other Member States were found to restrict the freedom
of national residents to receive, over the internet, services offered in other
Member States. They also restrict the freedom of operators established in other
Member States to provide gambling services.

Member States may restrict or limit the
cross-border supply of all or certain types of online gambling services on the
basis of public interest objectives that they seek to protect in relation to
gambling. The national rules focus mainly on consumer protection objectives, in
particular the prevention of problem gambling and the protection of minors, and
on crime and fraud prevention. While Member States usually offer legitimate
reasons for the restriction of cross-border gambling services, they must
nonetheless demonstrate the suitability and necessity of the measure in
question, in particular the existence of a problem linked to the public
interest objective at stake and the consistency of the regulatory system. Member
States must demonstrate that the public interest objectives they have freely
chosen to ensure are being pursued in a consistent and systematic manner and they
must not undertake, facilitate or tolerate measures that would run counter to
the achievement of these objectives.

In the past years infringement cases have
been launched by the Commission against a significant number of Member States
and remain under investigation to date. Numerous complaints in the field of
gambling, based on Articles 49 and/or 56 TFEU, are also currently registered.
The Commission uses the in-depth factual information gathered from the Green Paper
consultation as well as the latest case law of the CJEU in its on-going
assessment of national legislation in the pending infringement cases and
complaints. This assessment focuses in particular on whether national gambling
policies are consistent, notably with regard to their regulatory approaches to
the on-line and off-line offers of the same type of game as well as to games
which are clearly comparable in terms of the degree of risk they bear in
relation to fraud and/or consumer protection. The assessment also focuses on the
transparency and non-discrimination of licensing schemes as well as on the
proportionality of licensing conditions.

Simultaneously with the adoption of this
Communication, the Commission is inviting the Member States concerned to provide
information about the latest developments of their gambling legislation. The
Member States against whom infringement cases are open or complaints have been
registered will be asked to provide legal and factual (updated) information to
enable the Commission to complete its assessment of compatibility with EU law.

The Commission will, wherever necessary,
take action to enforce the relevant Treaty provisions in respect of any
national rules not complying with EU law, taking into account the latest case
law of the CJEU. Furthermore, the compliance of draft national legislation on
on-line gambling with EU law will continue to be assessed under the so-called notification
procedure[12].

The Commission will

·
Accelerate completion of its assessment of
national provisions in the pending infringements cases and complaints and take
enforcement action wherever necessary.

2.2.
Enhancing supervision, administrative cooperation
and efficient enforcement

In order to ensure the successful implementation
and application of a gambling policy at national and EU level Member States
need competent regulatory authorities, cooperating with authorities in other
Member States and using all available efficient enforcement means.

Several of the initiatives announced in
this Communication will imply the processing of personal data. In this respect,
compliance with the EU acquis on data protection shall be ensured[13].
This will require in particular a clear definition of the specific purposes of
data processing in order to ensure data quality and minimisation and compliance
with other data protection requirements.

2.2.1.
Establishing appropriate supervision and control
in Member States

In order to ensure effective implementation
and enforcement of gambling rules and efficient cross-border administrative
cooperation, every Member State should have well-equipped regulatory
authorities in place. National regulatory authorities need to have adequate
competences and know-how in order to deal with regulatory challenges in a
rapidly growing and technology-based market. As not all regulatory authorities may
have full competences for the supervision of the gambling market they may need
to cooperate with other relevant authorities at regional or national level in
order to meet demands for cooperation from other Member States' regulators and
not to fall short of their expectations.

2.2.2.
Fostering cross-border administrative
cooperation

Enhanced administrative cooperation is imperative
if today's regulatory challenges are to be met. Enhancing administrative
cooperation will assist Member States and gambling regulators in their
regulatory and supervisory role and improve the quality of their work.
Practical cooperation will enable Member States to become familiar with the
systems and practices of others, and to develop closer working relations at the
operational level. Actions aimed at fostering administrative cooperation also
need to result in a reduction of unnecessary administrative burdens, in
particular in the authorisation process and the supervision of operators
authorised in more than one jurisdiction. The certification and standardisation
of online gambling equipment can also play an important role in this respect.

Successful administrative cooperation
requires a clear definition of the areas Member States can request and exchange
information on and develop common actions and initiatives. Furthermore, an
appropriate structure has to be in place, with a clear mandate for cooperation which
can address the operational needs of regulatory authorities. The precise form
of cooperation between national regulators depends on the kind of information
and data that can be exchanged between the authorities.

A first immediate step on cooperation is to
focus on exchange of general information and best practice, in order to share
intelligence and experience and to build trust and a sense of mutual interest between
regulators. As a second step, through dialogue with Member States, the
Commission will further explore the possibilities for an exchange of personal
data, in compliance with national and EU rules on data protection. To this end,
recourse to the Internal Market Information system (IMI)[14] could facilitate administrative cooperation
between Member States.

Cooperation within the EU will not respond
to all the challenges in the online gambling market. Many of these challenges
are of a cross-border nature, often originating from outside the EU. In order
to coordinate actions and promote initiatives addressed to countries outside
the EU, the Commission will together with Member States identify issues to be
raised with third countries and seek to strengthen dialogue with them.

2.2.3.
Ensuring efficient enforcement at national level

Effective enforcement by Member States of their
national legislation – a key prerequisite of which is compliance with EU law – is
essential for the attainment of the public interest objectives of their
gambling policy. Effective enforcement depends, inter alia, on a sound
organisational structure and full competences for the national gambling
authority, adequate administrative cooperation with other regulators and
suitable enforcement tools.

Preventive
enforcement measures aim at reducing the initial contact of citizens with the offer
of cross-border online gambling services which are not compliant with the
legislation in force in the recipient Member State ("unauthorised")[15] and at ensuring compliance with national
gambling rules and common principles, such as player education and information,
understanding players' choice and behaviour and encouraging responsible business
conduct. Responsive enforcement measures, such as limiting access to
websites offering unauthorised gambling services or blocking payments between
players and unauthorised gambling operators, have certain benefits but also possible
shortcomings. Such measures also need to be carefully assessed in the light of
safeguarding fundamental rights and fundamental freedoms of the TFEU. Responsive
enforcement measures that require online intermediaries hosting illegal
gambling offers to take action (take down the offer or disable access to the
offer to customers in specific Member States), could benefit from clarification
as regards the procedures to be followed. The Commission is preparing a
horizontal initiative on notice-and-action procedures which should provide the
clarity needed. In addition, cooperation could be enhanced via the network established
by the Consumer Protection Cooperation Regulation which allows cross-border
enforcement actions[16].

MAIN
ACTIONS

The
Commission will

·
Facilitate administrative cooperation between
gambling regulators and explore possibilities offered by the IMI regulation to
cover the exchange of information/cooperation between Member States by 2013,

·
Enhance exchange of information and best
practice on enforcement measures and explore the benefits and possible limits
of responsive enforcement measures, such as payment blocking and disabling
access to websites, at EU level,

·
Provide clarification on the procedures for
notifying and acting on unauthorised content hosted in the EU by online
intermediaries[17],

·
Develop regulatory dialogue with third
countries.

Member
States are urged to

·
Set up and provide gambling regulatory
authorities with clear competences and ensure cooperation with other relevant
competent authorities,

·
Explore means to inform consumers about
available authorised offers in order to direct demand to the legal market.

2.3.
Protecting consumers and citizens

Throughout the EU Member States converge on
the objective of protecting citizens although they differ in terms of the
regulatory and technical approaches undertaken to achieve this objective. Appropriate
action in the EU is needed so as to: 1) draw consumers away from unregulated
and potentially harmful offers, 2) protect minors from accessing gambling
facilities, 3) safeguard other vulnerable groups and 4) prevent the development
of gambling-related disorders[18]. All
citizens should enjoy a high level of common protection throughout the internal
market.

While fully respecting each Member State's right to determine the regulatory framework for gambling services, the
Commission sees significant benefits in the development of a range of authorised
gambling opportunities in order to effectively dissuade consumers from using other
gambling offers. It is important for authorised operators to be able to offer
sufficiently attractive products, because in the absence of credible and
sustainable offers consumers will continue to turn to unregulated gambling
websites, with the ensuing potentially harmful effects.

2.3.1.
Working towards a high level of protection
across the EU

It is estimated that about 6.84
million European consumers participate in online gambling[19]. In an inherently cross-border environment
consumers must be able to make informed choices and be able to recognise an
authorised gambling offer. Faced with information overload, consumers do rely
on labels[20].
Therefore, the Commission encourages that details of the relevant regulating
authority feature prominently on the website of operators and that the level of
consumer information and knowledge is improved.

A number of Member States has experience
with protecting consumers in the online environment. The gambling industry has
also developed valuable technical expertise and self-regulatory approaches for
socially responsible gambling. Action requires efforts of all stakeholders. The
right balance needs to be struck and measures to protect consumers should not
have the adverse effect of leading players to seek more attractive offers on
unregulated sites.

A common set of principles elaborated at EU
level should aim at ensuring a high level of consumer protection. These
principles should include effective and efficient registration of players, age
verification and identification controls – in particular in the context of
money transactions, reality checks (account activity, warning signs,
signposting to helplines), no credit policy, protection of player funds,
self-restriction possibilities (time/financial limits, exclusion) as well as
customer support and efficient handling of complaints[21].

As a first step the Commission will prepare
a Recommendation on common protection of consumers.

2.3.2.
Ensuring the protection of minors

The protection of minors must be a priority
not least because 75% of 6-17 year olds in Europe use the internet[22]. Preventive protection measures should be
aimed at precluding minors gaining access to gambling content. This is why the
Recommendation should encourage that regulatory systems provide sufficient age
verification tools and ensure controls by operators. Moreover, gambling sites
should be encouraged to carry notices clearly indicating 'no underage
gambling' and provide information on the implementation of age verification
measures. These types of measures should be complemented by wider efforts such
as improving parental awareness of associated risks and software filtering in
the home. In addition, all operators should conduct their business in a
responsible manner.

2.3.3.
Enhancing responsible advertising

Responsible advertising is imperative in
order to ensure that citizens are aware that: 1) age restrictions apply, 2) gambling
can be harmful if not played responsibly and 3) the risks can be financial,
social or health related. In the EU not all Member States have advertising
regulations specific to gambling services. Some Member States have dedicated
codes of conduct. Self-regulatory approaches have also been undertaken by the
gambling and advertising industry. All citizens in the EU need to be
sufficiently informed on the choices they make as well as on the risks
associated with gambling.

The Commission will prepare a
Recommendation on responsible gambling advertising to ensure that operators
authorised in a given Member State advertise gambling in a socially responsible
manner and provide key information to consumers. For the Recommendation to be
wholly effective, both Member States and industry will be asked to contribute
to the preparation of its scope and design. Member States will be recommended
to provide for adequate sanctions for breaches or non-compliance. The
Recommendation will complement the Unfair Commercial Practices Directive[23].

2.3.4.
Preventing problem gambling or gambling
addiction

Based on the responses to the Green Paper,
it can be estimated that between 0.5-3% of the population in the EU suffer from
some type of gambling disorder. Evidence of both the scale and variety of
gambling disorders is not readily available. Moreover, existing studies and
surveys do not allow for incontestable conclusions. A better understanding is
required of 1) the definitions used, 2) the determinants (for example, chasing
winnings/losses, commercial communications, accessibility, frequency), 3)
causal links of types of games/bets, 4) the adequacy of preventive instruments
(for example, warning signs, self-limits, restricting certain games/bets) and
5) the type of treatment required.

The Commission is currently seeking to
acquire relevant information through ALICE RAP[24],
an EU co-funded research project which will inter alia compile data, classify
addiction, assess determinants and the transition to dependence, present
governance practices on addictions and provide a consolidated figure for the
scale of the problem in the EU. On the basis of the intermediary reports that
will be drawn up under this project, the Commission will consider initiatives for
a research policy on the development of gambling disorders, including detection
and treatment.

MAIN ACTIONS

The Commission will

·
Adopt Recommendations on common protection of
consumers and on responsible gambling advertising in 2013,

·
Support benchmarking and testing of parental
control tools through the Safer Internet Programme[25] and the Connecting Europe Facility[26] to improve age rating and content
classification systems,

·
Assess recommendations on gambling-related
internet addiction among adolescents under EU NET ADB[27] in 2012,

·
Report on the relevant working groups under
ALICE RAP in 2014 and carry out an assessment of these research results,

·
Assess market performance of online gambling
services under the Consumer Market Monitoring Survey from 2013.

Member States are urged
to

·
Strengthen information and awareness raising
initiatives on the risks related to gambling, as well as on unregulated
gambling offers,

·
Improve cooperation between gambling regulatory
authorities and consumer organisations

·
Increase the availability and use of online
safety practices of children and young people to prevent them from accessing
gambling sites,

·
Carry out surveys and data collection on
gambling disorders.

2.4.
Preventing fraud and money laundering

The main public interest objectives of
Member States with regard to public order are the prevention of gambling fraud
and money laundering. Credit card fraud and theft of banking credentials are reported
to be the most common crime in relation to on-line gambling. Online gambling
may also be used for laundering of funds stemming from illegal activities.
These criminal offences are often committed cross-border and involve organised
crime.

Member States' authorities as well as
regulated operators are faced with a number of challenges with regard to the
effective application of anti-fraud and anti-money laundering mechanisms. They
can be most efficiently tackled through international cooperation and
coordination, for example through structured cooperation between national
gambling authorities, national police and international enforcement authorities.
To the extent appropriate, preventive and protective measures also relevant to
the fight against money laundering (such as, for instance, the prohibition of
incurring loss on an anonymous basis) should also be considered in the context
of the Recommendation on common protection of consumers. Training of the
judiciary on issues surrounding fraud and money-laundering related to gambling is
also needed.

2.4.1.
Extending anti-money laundering measures

With regard to gambling activities the Anti-Money Laundering
Directive[28]
currently applies only to casinos. Some Member States have already extended the
scope of application of the Directive to other forms of gambling and a number
of regulated operators apply tools such as customer verification processes,
customer's profiling and payment monitoring. To create a
level playing field for all gambling operators as well as to ensure a
comparable level of protection across Member States, there
is a need for a broader application of the Directive to
all gambling services.

The Commission will, in the context of the review
of the Directive, consider extending its scope to all
forms of gambling whilst ensuring that proportionality is respected.

2.4.2.
Tackling identity theft and other forms of
cybercrime

The public consultation has made clear that the most frequent type
of gambling fraud is identity theft. This seems, however, to be reflecting a
more general pattern, namely the growing challenge that identity theft and
other forms of cybercriminality are posing to the online provision of services.
These issues are currently addressed by the Commission in the context of its
current policy on cybercriminality, including through its recent proposal to
establish a European Cybercrime center.[29] In order to ensure
that the solutions identified in this context also contribute to safer online
gambling services, the Commission will encourage exchanges of experience and
good practice in the fight against cybercrime within the expert group on gambling,
as well as exchanges with the European Cybercrime center, as appropriate.

2.4.3.
Safeguarding the security of gambling equipment

Certification of online gambling equipment including gambling
software is commonly required by Member State's competent authorities when
deciding on an application for a gambling licence. In order to ensure a
comparable level of security of online gambling in the EU, reduce the administrative
burden relating to different national certification procedures and provide for
a possibility of interoperability where appropriate, the Commission will
explore the merits of introducing an EU standard on gambling equipment
certification.

MAIN
ACTIONS

The
Commission will

·
Consider extending the scope of the AML
Directive to all forms of gambling in 2012,

·
Encourage, in the context of its policy on
cybercrime, exchanges of experience and good practice within the expert group
on gambling, as well as exchanges with the European Cybercrime center, as
appropriate,

·
Explore the possibility of an EU standard on
gambling equipment including gambling software in 2013.

Member
States are urged to

·
Promote the training of the judiciary on issues
surrounding fraud and money-laundering related to gambling.

2.5.
Safeguarding the integrity of sports and
preventing match-fixing

Betting related match fixing is a specific type of fraud that goes
against the interests of sport organisations, sportspeople, players (consumers)
and regulated gambling operators. Match fixing runs contrary to the principle
of fairness in sporting competitions, which is one of the objectives of EU
action in the field of sport (Article 165 TFEU). Addressing the issue requires
concerted and coordinated efforts from public authorities, sport organisations and
gambling operators.[30] A
number of regulatory (gambling licensing conditions, statutes of sport
federations) and self-regulatory mechanisms (codes of conduct) are in place in
the EU as well as educational campaigns, conflict of interest rules, bet
monitoring systems and alert tools (whistle blowing, hot lines etc.). Cooperation
between stakeholders exists but is limited in scope. There is a clear need for more
cooperation between betting operators, sport bodies and competent authorities
including gambling regulators, both at national and international level.

2.5.1. Fostering cooperation between stakeholders

Cooperation agreements are a useful tool in this area and the
Commission encourages their further development and to include all relevant
stakeholders (gambling operators, sport organisations, regulators). These
agreements effectively facilitate the creation of national contact points where
all relevant actors involved in fighting match fixing at national level can
come together, exchange information and coordinate actions. National contact
points are an essential element of efficient cooperation in view of tackling
match fixing issues at EU and global level.

2.5.2.
Developing anti-match fixing measures

Member States' approaches to financing of anti-match fixing measures
vary considerably whilst none of the financing models currently applied has
been found to be more or less efficient than the others.

The Commission will develop in a recommendation anti-match fixing
measures applicable across Member States and sport disciplines in cooperation
with stakeholders with a view to 1) promote a more efficient exchange of good
practices in the prevention of betting related match-fixing, including
initiatives on awareness raising and training for actors in the field of sports,
2) ensure mutual reporting and follow-up actions of suspicious activities by
sport bodies, operators and regulators, including gathering reliable figures on
the scale of the problem, 3) establish minimum conflict of interest provisions,
for example betting bans for sport people and sport officials as well as the
exclusion of youth events from betting, and 4) introduce hotlines and other
reporting or whistle-blowing alert mechanisms. Dedicated workshops will be
organised to this purpose with the involvement of experts on gambling.

2.5.3.
Ensure effective deterrence of match fixing

The Study on match fixing in Sport[31]
found that match fixing is criminalised in all Member States. It also indicated
that a specific incrimination of sport offences did not necessarily lead to
better enforcement or fewer suspicious cases. The main shortcomings in relation
to the prosecution of match-fixing cases are of an operational nature and
initiatives at EU level should aim at improving the enforcement of anti-match
fixing rules.

The Commission is participating in the work of the Council of Europe
which is discussing a possible convention against the manipulation of sports
results. The aim is to provide national systems with the tools, expertise and
resources necessary to combat this threat.

2.5.4.
Promoting international cooperation

The Commission will, by using part of the
funds available under the 2012 Preparatory Action for European Partnerships in
Sport[32], launch
test projects aimed at promoting international cooperation in the prevention of
match fixing. It will equally continue cooperation with the International
Olympic Committee (IOC) and the Council of Europe both of whom have proposed
and developed measures to address the issue in a global manner[33]. The Commission will explore the
possibility of including protecting the integrity of sport and combatting match
fixing in discussions with third countries and the competent international
organisations in the field of sport.

MAIN
ACTIONS

The
Commission will

·
Adopt a Recommendation on best practices in the
prevention and combatting of betting related match fixing in 2014,

·
Participate in the work of the Council of Europe
on a possible Convention against manipulation of sports results,

·
Promote international cooperation and dialogue
in the prevention of match fixing.

Member
States are urged to

·
Set up national contact points bringing together
all relevant actors involved in fighting match fixing,

·
Equip national legal and administrative systems
with the tools, expertise and resources to combat match fixing,

·
Consider sustainable financing of sports
integrity measures.

3.
Conclusions

Responding to the various regulatory and
technical challenges of the online gambling sector requires sound and effective
measures. The actions announced in this Communication form a comprehensive
strategy to meet these challenges.

The European Commission will work together
with the European Parliament, Member States and all stakeholders concerned on
the prompt implementation of this Communication. It will call for a first
meeting of the expert group on gambling in 2012 and initiate a dialogue with
all stakeholders. A stakeholder conference will be organised in 2013.

The European Commission will evaluate the
implementation of this Communication and the application of the measures by Member States and stakeholders. It will report on the progress achieved by publishing a
report within two years of the adoption of this Communication. In the report,
the Commission will assess if the actions as implemented are sufficient,
notably with regard to the objectives of a more effective protection of
consumers and deterrence of match-fixing. The Commission will also assess
whether these actions provide an adequate EU framework for online gambling or
if additional measures, where necessary legislative ones, need to be taken at
EU level.

[1] The term "online
gambling" refers to a range of different gambling services and
distribution channels. See for an overview and discussion of the definitions
section 2 of the Staff Working Document

[2] In 2011 annual revenues of the overall EU gambling market
were estimated to be around €84.9 billion, with annual growth rates of around
3%. Between 2008 and 2011 the land based gambling market grew by around 8.3%.

[3] H2 Gambling Capital (gaming and betting
consultancy)

[4] Green Paper on on-line gambling in the
Internal Market (COM(2011) 128 final)

[5] Staff Working Document reference No

[6] Minors as used in this Communication include
"children". In line with Article 1 of the UN Convention on the Rights
of the Child, a "child" means any person below 18 years of age. In
certain Member States young adults are covered by the regime applicable to
children

[7] All the actions proposed to be taken up by the Commission
in this document are consistent and compatible with the current multiannual
financial framework

[8] 3057th COMPETITIVENESS Council conclusions on
the framework for gambling and betting in the EU member states, 10 December
2010

[9] Council Presidencies Progress reports on the framework for
gambling and betting in the EU Member States (2008-2011)

[10] 2011/2084(INI)

[11] CESE 1581/2011 - INT/579

[12] Directive 98/34/EC laying down a procedure for the
provision of information in the field of technical standards and regulations, as
amended by Directive 98/48/EC

[13] Directive 95/46/EC on the protection of individuals with regard to the
processing of personal data and on the free movement of such data, see for the data protection
reform and the reform package adopted by the Commission on 25 January 2012: http://ec.europa.eu/justice/newsroom/data-protection/news/120125_en.htm

[14] A Regulation on administrative cooperation through IMI
(based on Commission proposal COM(2011) 522 final) is expected to be formally adopted by the European Parliament and the Council in September/October 2012. This Regulation will create the possibility to launch IMI pilot projects to test the use of IMI for administrative cooperation, including the exchange of personal data, in any Single Market area provided that there is a legal
basis for the exchange of these data.

[15] Unauthorised gambling
services in the recipient Member State does not imply that such services are
not regulated in the Member State of origin. Neither does that imply that they
are not authorized in other recipient Member States.

[16] Regulation (EC) No 2006/2004 on cooperation between
national authorities responsible for the enforcement of consumer protection
laws (the Regulation on consumer protection cooperation)

[17] For more details see http://ec.europa.eu/internal_market/e-commerce/notice-and-action/index_en.htm

[18] E.g problem gambling, pathological
gambling, excessive gambling

[19] H2 Gambling Capital

[20] A European Consumer Agenda - Boosting
confidence and growth (COM(2012) 225 final)

[21] As
proposed in the
proposals for a Directive
on consumer Alternative Dispute Resolution and a Regulation on consumer ODR at http://ec.europa.eu/consumers/redress_cons/adr_policy_work_en.htm

[22] European Strategy for a Better Internet
for Children (COM(2012) 196 final)

[23] Directive 2005/29/EC concerning unfair business-to-consumer
commercial practices in the internal market and amending Directives 84/450/EEC,
Directives 97/7/EC, 98/27/EC and 2002/65/EC and of Regulation (EC) 2006/2004

[24] This is a trans-disciplinary project, funded under the 7th
Framework Programme for research and technological development. It focuses on
research related to addiction and lifestyles in Europe over 5 years
(2011-2015), For more information: http://ec.europa.eu/research/social-sciences/projects/486_en.html

[25] Decision No 1351/2008/EC establishing a multiannual
Community programme on protecting children using the Internet and other
communication technologies

[26] Proposal for a Regulation of the European Parliament and of
the Council establishing the Connecting Europe Facility (COM (2011) 665)

[27] Aimed at evaluating the prevalence and determinants of
borderline addictive internet use and internet addiction among European
adolescents

[28] Directive 2005/60/EC on the prevention
of the use of the financial system for the purpose of money laundering and
terrorist financing

[29]
Tackling Crime in
our Digital Age: Establishing a European Cybercrime Centre (COM (2012) 140
final)

[30] See Nicosia Declaration on
the Fight Against Match-Fixing of 20 September 2012

[31] http://ec.europa.eu/sport/news/20120410-study-on-match-fixing_en.htm

[32] http://ec.europa.eu/sport/news/20120417-2012-call-for-proposals_en.htm

[33] CM/Rec(2011)10, IOC recommendations
against match fixing of 2 February 2012