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European Gaming Issues
Thibault Verbiest
IAB, Chicago
22 September 2006
European Gaming Issues
“ If you bet on a horse, that’s gambling. If you bet you can make three spades, that’s entertainment. If you bet cotton will go up three points that’s business. See the difference ? ”
European Gaming Issues
• A brief “update” Traditional gaming: Bookmaking agencies,
brick and mortar casinos, horse racing, bingo, sports wagering, lotteries
Non-traditional gaming becoming more prevalent :
internet gaming SMS games Video games and much more !
European Gaming Issues
• Remarkable growth of the online gambling market Traditional bookmakers are using the internet to make
gambling much more accessible to a much wider audience: Ladbrokes, William Hill (UK) Traditional land-based bookies now compete with online-
only sportsbooks : BWin, Sportingbet Online poker: fastest growing segment in the last 18
months Online casino: lower growth / often added to sportsbooks
or poker sites
European Gaming Issues
• What is noticeable on each of these sites? Markets that were differentiated offline become
one: “the online gambling market” versus “the casino market”, “the betting market”
Monopolies go online and diversify: eg, Française des Jeux offers lotteries, sports betting, and more and more casino style games
More competition
European Gaming Issues
• Where do the problems come from ?! Outdated legislation, not aimed at internet gaming:
eg, French 1836 Lottery Act! No European harmonization: each countries has its
own laws: Malta and UK ≠ France Restrictive gaming policies: monopolies based on
false pretense of consumer protection, anti-fraud, public order
Consequence: unfair competition, infringement of internal market rules ► complaints and litigation
European Gaming Issues
• Most recent one: France Executives of Gibraltar based bookmaker BWin
arrested following complaint by monopoly Criminal proceedings based on “unlawful games of
chance, unlawful lotteries and unlawful horse betting”
But pressure from European Commission growing: infringement proceedings to be launched soon against 8 countries including France
Fierce battle between Europe and France is starting
European Gaming Issues
• Belgium : From prohibition to regulationNew Games of Chance Act to allow
European remote gaming operators to apply for “quality labels certificates” with Gaming Board
Entry into force 2007
European Gaming Issues
• Concluding remarksBoom of European gambling market
pushing towards liberalisation and reform of outdated systems
National “de facto” opening (Belgium, Italy, Germany) closely followed by European scrutiny
Outlook: market opening 2-5 years
Thank you for your attentionthibault.verbiest@ulys.net
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