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
Date: 2012-10-23
Institutions: European Commission
Subjects: consumer protection, electronic commerce, game of chance, gaming establishment, harmonisation of standards, intergovernmental cooperation (EU), professional sport, single market

EUROPEAN 
COMMISSION 

Strasbourg, 23.10.2012  
COM(2012) 596 final 

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 

{SWD(2012) 345 final} 

EN 

   EN 

 
 
 
 
  
 
TABLE OF CONTENTS 

1. 

2. 

Introduction .................................................................................................................... 3 

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 

2 

 
 
 
 
1.  INTRODUCTION 

Online  gambling1  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 repr esent 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 Market4. 
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. 

together  with 

This  Communication, 
the  accompanying  Commission  Staff  Working 
Document5,  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 

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 

3 

 
 
                                                 
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, minors6 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 services7.  

Finally,  this  Communication  responds  to  the  Council's  conclusions  on  the  framework  for 
gambling and betting in the EU Member States8, a series of Presidency progress reports9, the 
resolution of the European Parliament on online gambling in the Internal Market10 and to the 
Opinion of the European Economic and Social Committee11. 

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.  

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 

4 

 
 
                                                 
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 

5 

 
 
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 

6 

 
 
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 
procedure12.  

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 
ensured13.  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. 

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 

7 

 
 
                                                 
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.  

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. 

8 

 
 
                                                 
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 actions16. 

MAIN ACTIONS 

The Commission will 

•  Facilitate  administrative  cooperation  between  gambling 

possibilities  offered  by 
to 
information/cooperation between Member States by 2013, 

regulation 

IMI 

the 

regulators  and  explore 
exchange  of 

the 

cover 

•  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 intermediaries17, 
•  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. 

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  

9 

 
 
                                                 
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  disorders18.  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 gambling19. 
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  labels20.  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 

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) 

10 

 
 
                                                 
credit  policy,  protection  of  player  funds,  self-restriction  possibilities  (time/financial  limits, 
exclusion) as well as customer support and efficient handling of complaints21. 

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  internet22.  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 Directive23.  

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 

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 

11 

 
 
                                                 
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 RAP24, 
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 
Programme25  and  the  Connecting  Europe  Facility26  to  improve  age  rating  and  content 
classification systems, 

•  Assess recommendations on gambling-related internet addiction among adolescents under 

EU NET ADB27 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 

• 

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 

12 

 
 
                                                 
• 

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 Directive28 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 

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

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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 

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 

14 

 
 
                                                 
(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 Sport31 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. 

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

15 

 
 
                                                 
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  Sport32,  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 manner33. 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 

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  

16 

 
 
                                                 
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.  

17