Belgium Legal Update


TOO RISKY TO BANK?


Te unfair burden on access to banking by licensed gaming operators.


Te gaming industry has often been under the spotlight when discussing Anti-Money Laundering (AML) rules with gambling operators being subject to strict scrutiny and enforcement by the Member States. However, even when fully compliant, face growing barriers when it comes to dealing with financial institutions. Many push back on providing essential banking services, based on Environmental, Social, and Governance (ESG) concerns and AML compliance considerations. While these grounds may appear valid at first glance, a deeper examination exposes significant flaws in the banks' approach and raises questions about the fairness and rationale behind such treatment.


THE ESG ARGUMENT: MORAL JUDGMENT BY BANKS


In recent years, ESG considerations have become a cornerstone of corporate decision-making in the financial sector. Driven by their ESG policies, banks are increasingly reluctant to provide services to industries that are viewed as morally or socially questionable. Alongside sectors like carbon-intensive industries, nuclear energy, and defence, gaming operators have found themselves on the list of industries facing moral scrutiny. Banks often argue that their refusal to work with gaming operators aligns with their ESG commitments and public image.


But should banks, as providers of essential infrastructure, be the moral arbiters of what constitutes acceptable trade? In many EU Member States, having a bank account is not only a practical necessity but a legal requirement. For instance, in Belgium, companies are legally obliged to maintain a bank account. Non-compliance leads to criminal liability. Given this


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context, banks play a quasi-public role in the economy, and their ability to unilaterally exclude certain industries based on subjective moral judgements is deeply problematic.


Moreover, the gaming industry in the EU is far from unregulated or rogue. Gaming operators licensed by EU Member States are subject to rigorous regulatory oversight, ensuring that their operations are transparent, fair, and compliant with the law. Te Court of Justice of the European Union has explicitly recognised the right of Member States to authorise and regulate games of chance and it is acknowledged that such regulation can prevent the growth of illegal, unregulated gambling. Without licensed operators, players would likely turn to non-EU platforms which may pose greater risks in terms of player protection and money laundering.


CHRISTOPH DE PRETER Edson Legal


christoph.de.preter@edson- legal.eu www.edsonlegal.eu


PIETER PAEPE Edson Legal


pieter.paepe@edsonlegal.eu www.edsonlegal.eu


By Pieter Paepe & Christoph De Preter from Edson Legal – a company which specialises in Business Law and Strategy alongside a number of fields of law including gambling.


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