European Nations Unified on Gambling Policies, Pushed by Poland
In a significant move towards addressing the issue of illegal gambling and money laundering within the European Union, Poland, currently heading the Council of the European Union, has officially presented a proposal for the establishment of a special working group under the European Commission. This proposal, which was presented in December 2022, includes participation from countries such as Germany, the Czech Republic, and Slovakia.
The proposed working group aims to find ways for Member States to act together against identified threats, with a focus on standardizing the gambling industry and protecting consumers better across the EU. This collaboration could potentially extend beyond Member States, as Switzerland and Lichtenstein, who are not Member States, have recently decided to block problem gamblers on both sides of their border.
Switzerland and Lichtenstein's decision to collaborate on blocking problem gamblers is not part of the European Union, but could be seen as a model for future collaboration. The decision could be a sign of things to come in the European Union, as Poland advocates for a stronger response to threats like illegal gambling and money laundering.
The current approach to combating illegal gambling has been piecemeal, with domestic markets handling the issue individually. However, the proposed changes aim to centralize efforts to restrict unlicensed operators across the EU. This could potentially lead to more collaboration between regulators and countries in the European Union.
Artificial Intelligence could play a significant role in combating illegal gambling websites across the EU. Memoranda of Understanding have already been established between individual Member State regulators to exchange knowledge and expertise, with specific brands known to be offenders being a focus of these agreements.
The regulated gambling companies find it difficult to compete due to the presence of unregulated operations. These black-market operations have negatively impacted the regulated gambling sector in core markets such as Sweden, Germany, Belgium, etc. Poland estimates that as much as $7bn in tax opportunities may be lost due to black-market gambling operations.
The measures to restrict unlicensed operators are far from fully implemented, but the full potential of Poland's proposal is worth pursuing. The proposed collaboration could potentially lead to a more coordinated and effective approach to combating illegal gambling and money laundering within the European Union.
