Many European countries are moving toward the legalization and regulation of online gambling. As a result, the European online gambling market is always a hot topic for discussion. The latest updates of progression descend from the United Kingdom, Bulgaria and Finland.
Bulgarian Online Gaming
In 2008, the Bulgarian government embarked on the legalization of the online activity with a tax on all profits of 17 percent. Each state within the country was expected to monopolize sports betting. Finally, in May 2011, Bulgaria sent a revised draft of gambling regulations to the European Commission (EC) for approval. Unfortunately, this draft has once again been rejected for a variety of reasons.
Advertising Restrictions
First, the Bulgarian government proposed several restrictions on the advertising of online gambling. Online operators would not be able to achieve the numbers to make a profit without extensive advertising. Although few players would still participate, the numbers would not be anywhere near other countries.
Licensure Requirements
Second, the requirements of applicants for licenses must have at least five years of experience in the Bulgarian marketplace. Also, Bulgarian banks must be used for all online transactions and a presence in the country is required. There are currently over 200 online gambling sites available in the Bulgarian language that also offers Lev and Euro as a currency option.
European Gaming and Betting Association
click here to see most Popular PagesThe European Gaming and Betting Association (EGBA) was also involved in the approval process and warned the Bulgarians that they need to also consider the European Commission in order to receive a commercially viable business model. The EGBA secretary general commented that several of the main requirements outlined in the bill are not appealing enough to attract any operator to apply for a license.
Finland Online Gambling
In Finland, the Veikkaus, a state-owned lottery operator, recently established a subsidiary in an effort to expand into Russia, China and the United States. This subsidiary is expected to be fully operational by July 2011. The subsidiary’s objective is to form alliances with mainstream gambling operators, media companies and system vendors as opposed to applying for licensure. The lottery operator is attempting to target markets outside of the European Union.
United Kingdom Online Gambling
Finally, the United Kingdom Department of Culture, Media and Sport selected a new committee to review the gambling industry as a whole and the Gambling Act of 2005. The committee will be meeting with operators to learn more about the impact of the Act and effectiveness of the Gambling Commission.
These three countries appear to be full steam ahead with the goal of developing a fair and well-regulated online gambling system. Each of the three countries is at different stages but will soon establish an excellent system.
