pRojected GRowth of the thRee main online GamBlinG cateGoRies. Type
2003 Internet
short space of time and is continuing to grow rapidly as it rollercoaster rides through the various jurisdictions.
By 2001 it was estimated that the number of people who have gambled online reached around eight million. It was also around this time that the market was suddenly inundated with new legislation and, yes, lawsuits. Whilst the US battled to put an end to online gaming, across the pond the Europeans were doing all they could to legislate the market. By 2007 there were approximately 80 international jurisdictions regulating online gambling in one form or another. Whilst some fully embrace all sectors there are others who only permit certain types of internet betting.
Today, the industry is worth around US$24bn and internet gaming covers only four to five per cent of the worldwide gambling market. Predictions estimate the industry will peek around 2015 when the market will bring in US$528bn annually worldwide. Around a quarter of this comes from the 6.84 million European consumers who participate in online gambling compared to 4.32 million consumers in Asia and the Middle East and 4.21 million in North America. The largest market in terms of revenue is the UK followed by Germany and then Italy, France and Sweden. Meanwhile, in Europe, the overall GGR from online gaming in 2008 was €6.1bn, about 7.5 per cent of the total gambling market. By 2010 this is expected to rise to €12.5bn. Online GGR was 0.68 per cent of the GDP in the EU in 2008.
euRopean GReen papeR In response to the growing importance of the online gaming market and the number of inconsistencies which exist across countries there are now calls for a EU internal market
Mobile phone/other IPTV
€4.8bn €0.78bn €0.32bn
2008
€5.9bn n/a n/a
rules book. National legal frameworks vary enormously across the EU with different rules for services, payments and even fraud. In order to ensure legal certainty and effective protection of EU citizens in this activity it has now become important to evaluate the different models and how they co-exist in the market.
It is estimated that for every licenced online gaming website worldwide there are five more websites offering online poker or sports betting without a licence.
In March this year a Green paper called On- line Gambling in the Internal Market was launched which aims to start an extensive consultation process on all public policy challenges and possible single market issues resulting from the rapid development of online gambling in the EU. The aim is to collect detailed information and data on key policy issues such as the organisation of online gambling services, enforcement of applicable laws, consumer protection and other relevant public policy challenges.
It will look at the advantages and difficulties associated with the co-existence in the EU of different national systems and licensing of services, the rules and practices, consumer protection, public order in terms of fraud and money laundering and revenues and enforcement within the illegal gambling market. The Remote Gambling Association has welcomed the move, but queries whether existing infringement procedures against member states would be curtailed during the consultation process.
2012
€7.32bn €3.51bn €1.33
Projected increase 152.5% 450%
415.6%
Internal Market and Services Commissioner Michel Barnier said: “The online gambling market in the EU continues to grow rapidly and generates important revenues that are sometimes channeled into good causes. Its expansion must go hand-in-hand with a determination to protect our citizens especially minors and to ensure that offers of these types of services within the EU are sound and well regulated.”
The EGBA has welcomed the Green Pater but is however expressing concern at the lack of commitment to curb further fragmentation of the common market and ensure consumers throughout the EU enjoy consistent standards of regulated and safe products.
Secretary General of the EGBA, Sigrid Ligne said: “We are concerned that the focus of the paper seems to be on a national rather than an EU approach despite the clear cross border nature of this sector. What we expect is the commission to propose an EU regulatory framework for online gambling as it has done for other inherently highly regulated sectors such as telecoms or pharmaceuticals.”
• This special issue has been designed to look at the current laws and legislation of the 10 main countries in Europe which have, or are about to instigate, remote gaming legislation. This G3 iGaming Review provides an in-depth coverage of each country’s background, regulations, technical standards and facts and figures involved this particular market. It has been kindly sponsored by Evolution Gaming and compiled by Karen Southall and Alexandre Rotenberg.
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