By Martin Banks - 19th October 2011
All sides are completely absorbed in the issue but I am hopeful we can get a majority in favour of the report next month
Internal markek committee chair Malcolm Harbour MEP
Against this backdrop, EU policymakers are starting to think in earnest about the need for an EU framework and what it might contain
Secretary general of the European Gaming and Betting Association (EGBA) Sigrid Ligne
Even though we are all choosing different, locally-tailored routes towards responsible, well-regulated gambling, I suspect we are facing very similar underlying problems
UK tourism and heritage minister John Penrose
As rapporteur, it is my job to facilitate a sensible compromise which is ambitious but can still be supported by a broad majority of parliament
Jürgen Creutzmann MEP
A British government minister has urged the EU to "respect" each member states' right to regulate online gambling at a national level.
Addressing a debate organised by The Parliament Magazine and the European Gaming and Betting Association (EGBA), John Penrose said that different cultural attitudes and norms "vary enormously" across Europe.
"In the UK we have light touch regulation and an open market but member states such as Poland and Portugal have more conservative views on gambling and their legislation is more restrictive."
Penrose, the UK tourism and heritage minister, added, "These differences have deep roots and spring from fundamentally different religious traditions, cultural attitudes, legislative styles and approaches to managing the always-fuzzy dividing line between things which are harmless and enjoyable for the majority of the population but potentially seriously harmful for a small minority."
Penrose was one of the keynote speakers at the debate on current legislative proposals for online gambling.
The event - which coincided with EGBA's Responsible gaming day - was told that the European parliament will next month be asked to back a report, already adopted by the assembly's internal market committee, on the issue.
The report, drafted by committee member Jürgen Creutzmann forms parliament's formal response to a European commission green paper on gaming.
In his speech, Penrose said all regulators, governments and industry had a responsibility to ensure that consumers enjoy "proper protection" when they gamble online.
"But gambling is a contentious, emotive and political issue, governed by 27 differing national systems," he said.
He said that while there was "scope" for "practical cooperation" at EU-level" policymakers should "avoid unnecessary bureaucracy, duplication and a 'tick box' approach to regulation".
Further comment came from Creutzmann, whose report on the "future of online gambling in the EU" is expected to be voted on in Strasbourg on 14 November.
The German deputy said he supported EU-wide harmonisation of current rules in order to bring member states into line with each other.
He said that within a short period of time, the internet had opened up "plenty of new possibilities" for gambling operators to offer their services across Europe.
"However, online gambling is still regulated exclusively at national or even regional level, like in Germany.
"The policy options chosen by member states could not be more different, ranging from outright prohibitions of any form of online gambling to perfectly liberalised markets in other member states."
He added, "However, the internet does not have any physical borders. Therefore, the market is distorted at the moment and the regulation does not work."
Creutzmann said that as parliament's rapporteur on online gaming he had had to reconcile "quite different" views.
"On the one hand, you have the defenders of the free market who would like to liberalise online gambling completely. On the other hand, you have the defenders of state monopolies who think that this is the only way to protect consumers and combat organised crime."
He said, "Lobbies on both sides have been very active in trying to influence MEPs but national interests have also been very influential which explains the large number of amendments that were tabled to my draft report."
"As rapporteur, it is my job to facilitate a sensible compromise which is ambitious but can still be supported by a broad majority of parliament."
UK Tory MEP Malcolm Harbour, the internal market committee chair who chaired the debate, said it was taking place at a "very timely" moment as it came on the eve of parliament's vote on Creutzmann's report.
Harbour added, "All sides are completely absorbed in the issue but I am hopeful we can get a majority in favour of the report next month."
Sigrid Ligne, secretary general of the European Gaming and Betting Association (EGBA), which co-organised the event, says there are "varying approaches" to the issue throughout the EU.
"Against this backdrop, EU policymakers are starting to think in earnest about the need for an EU framework and what it might contain."
Penrose however argued that although the British government wanted an "open and free" gambling market, "I don’t expect every other member state to have to regulate their markets in the same way."
"But even though we are all choosing different, locally-tailored routes towards responsible, well-regulated gambling, I suspect we are facing very similar underlying problems: keeping criminals out of the industry; protecting children and vulnerable adults from the effects of problem gambling; arranging for money to go to good causes of one sort or another, added Penrose.
"These are all issues which we will have to face, and there may be valuable, practical lessons we can learn from each other."
The hearing heard that the commission's green paper, launched in March, seeks to obtain a 'fact-based' picture of the existing situation in the EU. Some 250 responses were received to its public consultation and the results will be published early next year.
