Proposed structure of the EUROMAT response to the ... - Jogo Remoto

European Gaming and Amusement Federation
Europäische Verband der Unterhaltungsautomatenwirtschaft
Fédération Européenne des Jeux et d'Amusement
In several EU Member States, remote gambling service providers are subject to lower taxes and
have overall lower operating costs than their land-based counterparts. Therefore, they are able to
offer services with more favourable price parameters (e.g. better bookmaking rates, higher
withdrawals at casinos). Moreover, in several Member States remote gambling service providers
operate illegally under the national legislation of those countries and as a result they do not pay any
tax at all.
In Poland, for example, in light of considerable cross-border transactions, the offer of remote
gambling service providers has significantly distorted the Polish market for many years. The offering
of these entities has required both law-making authorities and domestic companies to adjust
whereby the Polish Parliament has proposed an act enabling domestic companies ("bricks-andmortar")
to offer also on-line sports betting. Thus, the companies will be able to compete not only
through the traditional network, but also through the electronic network, using the advantage of
their local brands. Polish fiscal authorities have not yet however resolved the issue of parity of tax
rates so while domestic entities may enter the market, keeping market share is a challenge as their
direct competitors are essentially paying no tax.
Question 4: What, if any, is your experience of licensed non-EU on-line gambling operators
providing and promoting their services in EU Member States? What are your views on their
impact on the EU market and on consumers?
EUROMAT refers here to its statement of principles on responsible gambling and notes that current
regulation of remote services is inadequate as it lacks consistency, effective enforcement, consumer
protection and distorts national and international markets by creating a competitive advantage for
remote operators at the expense of licenced operators in the respective markets, consumers and
national government revenues. The problems faced and the result of an uneven level playing field
across the gambling industry is the same whether assessed at the national or the EU level.
In Germany and the Netherlands, for instance, many EU-based (and Non-EU-based) remote
gambling service providers licensed in one EU Member State (or other countries) provide and
promote gambling and sports-betting. They offer their services in an uncontrolled manner to the
great disadvantage of the land-based strictly controlled amusement and gaming device industry and
are not beholden to consumer protection rules. From the viewpoint of "bricks-and-mortar"
companies licensed in Poland, on-line operations are very competitive. Difficulties arise where
either licenced operators from another EU Member State or non-licenced operators compete
directly with Polish-licenced entities but do not comply with Polish law.
Question 5: If any, which are the legal and/or practical problems that arise, in your view, from the
jurisprudence of national courts and the CJEU in the field of online gambling? In particular, are
there problems of legal certainty on your national and/or the EU market for such services?
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