The legalities revolving around gambling in Europe have always been sketchy at best. The struggle for power positions between EU decision makers has resulted in much confusion regarding laws and regulations. Despite all the chaos, online gambling in Europe has taken off considerably since its inception and continues to flourish.
Laying the Ground Work
The first major step Europe took towards online gambling was the establishment of Boss Media AB, a Swedish software company. Founded in 1996, its original intent was to only operate Gold Club Casino. However, following the success of the initial launch, the company was met with several offers from interested industry affiliates. In what seemed like no time, Boss Media became a major player in the internet casino industry, becoming listed on the Stockholm Stock Exchange in 1999 and a member of the World Lottery Association in 2002. To the current day, Boss Media AB delivers online gaming solutions to some of the most renown organizations in the industry, including Bwin and SportingBet.
Source of Confusion
The relative success brought forth by Boss Media occurred right in the middle of a long and intense battle among EU members as they tried to define the regulations and limitations of internet gambling. Various European countries adopted three main approaches toward the issue. France, Italy, Spain, Belgium, Germany and other countries in Traditional Western Europe, originally planned to restrict and at first, completely prohibit online gambling. The more liberal countries such a the United Kingdom, Scandinavia and The Netherlands especially, made attempts to establish a safe and regulated online gambling environment for their citizens. Smaller EU jurisdictions such as Alderney, Lichtenstein, Gibraltar and Isle of Man took a more open and tolerant approach to online gambling, a move that was done to attract new business.
The inconsistency in these approaches between European countries has formed the core for most of the confusion. Some countries allow the operation of online gaming in their territory but prohibit operators from servicing residents in that area. Others have monopoly over the gaming industry in their territory, refusing to open borders to international countries and European localities as well. Until a single standard is established by the European High Courts of Justice, there will always be loopholes in the law and mass confusion will continue to exist.
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Attack on the U.S.
In December of 2007, a number of major EA online casino operators teamed up against the United States over what they deemed to be discriminatory practices. They claimed that the UIGEA was in violation of international trade law and thus, should be replaced with a more efficient regulated online gambling system instead. This proposed concept is quite similar to the current legislation spearheaded by U.S. state representatives such as Barny Frank. Europe’s joint forces sparked global rage, leading to other countries such as Australia and Canada joining to aid in the battle for legal internet gambling. Rather than changing its legislation, it is reported that the U.S. simply settled the case by compensating each country.
As it stands now, the state of internet gambling in Europe remains in utter shambles. Ironically, that has not halted the explosion of popular casino games like poker and online bingo from emerging on the market.
