EU takes steps towards European regulation of illegal gambling

1 Jun 2010

EU ministers have taken the first steps towards possible European regulation of illegal gambling according to EurActiv.

Despite opposition from EU member Malta, whose gambling industry brings it substantial tax revenue, EU ministers on Tuesday agreed a common definition of illegal gambling which brings its nearer achieving a common policy on the area.

At a meeting in Brussels on May 25th ministers briefly discussed a progress report by the Spanish EU Presidency that could pave the way for a legal framework on gambling and betting in the EU.


EurActiv claims that diplomatic sources said that the main result of the discussion was an agreement over a common definition of illegal gambling.

According to reports illegal gambling may be defined as "gambling in which operators do not comply with the national law of the country where services are offered, provided those national laws are in compliance with EU treaty principles".

Previously both Malta and the UK had been opposed to any regulation at an EU level arguing that gambling is an economic activity and that EU rules on freedom of services in the internal market need to apply.

However, at this meeting it was only Malta who decided not to support the Spanish Presidency's report and tabled a separate statement on the matter.

Because gambling activities are considered as essentially national the European Commission has never proposed common rules to regulate this type of economic activity.


But because there have been years of ad-hoc rulings by the European Court of Justice to regulate gambling in Europe, Internal Market Commissioner Michel Barnier announced in February that the EU executive would seek a more coherent way to address the issue.

The announcement also follows pressure from EU member states – with the exception of Malta and the UK – and the European Parliament to legislate on illegal gambling.

Barnier has said that the Commission will launch a public consultation on the issue with a Green Paper due to be launched in autumn 2010. Specific proposals to tackle illegal gambling could follow afterwards.