EU warning over 'explosion' of online gambling

MEPs in Strasbourg have endorsed a report which effectively upholds the existing right of member states to control gambling and sports betting.

The outcome comes as a setback to those who are pressing for EU-wide liberalisation of the gambling industry.

Deputies overwhelmingly voted in favour of an own-initiative report by Danish Socialist member Christel Schaldemose on the 'integrity' of online gambling.

Some 544 voted in favour of her report with 36 against and 66 abstentions.

An alternative report, supported by UK centre-right MEP Malcolm Harbour, argued that internal market rules should apply to gambling activities but was heavily defeated.

He reacted by saying parliament had "missed an opportunity" for a more open gambling market, adding, "Several member states continue to have their heads in the sand, failing to recognise the realities of a dynamic gambling market."

He said the situation in the UK "has proved how a liberalised, but effectively regulated market, can achieve both a high level of consumer protection and integrity in online gambling."

The outcome of Tuesday's vote came amid widespread concerns voiced by many MEPs about illegal betting behaviour and match-fixing.

Schaldemose said there had been an 'explosion' in online gambling and was among those members who called for action on the €4bn internet gambling market in order to protect young people and prevent fraud.

She said, "This is not about restricting the private sector but about commonsense action to protect vulnerable people."

Further MEP reaction came from Eija-Ritta Korhola, EPP-ED spokesman on the issue, who said, "As the report stresses, a pure internal market approach is not enough. Social and public order aspects must be considered."

British Socialist deputy Arlene McCarthy, who chairs parliament's internal market and consumer protection committee, said, "EU member states have the right to set their own laws on gambling.

"No member state has the right to set hypocritical laws that discriminate in favour of domestic and government-owned operators. But we cannot ignore genuine concerns to ensure the integrity of gambling services."

The gambling industry was quick to respond, with state lottery associations generally welcoming the result, while private gambling operators arguing that the report failed to take into account the cross-border nature of the sector.

Sigrid Ligné, secretary-general of the European Gaming and Betting Association (EGBA), said, "The vote shows that we cannot expect EU harmonised legislation to be adopted in the near future.

"This means that case law of the court of justice will prevail for our sector in the years to come."

However Ron Goudsmit, chairman of the European Casino Association, said the vote "acknowledges that member states are best placed" to guarantee consumer protection in gambling.

Winfried Wortmann, president of European Lotteries, commented, "Parliament is well aware that gambling is a sensitive area and that lifting well-founded restrictions would create issues with regard to consumer protection and public order."

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