Unpaid penalties for illegal gambling violations persist against operators in Belgium, resulting in a €5 million uncollected fine for the state.
When gambling providers flout existing regulations, authorities often levy hefty penalties. Yet, this method seems to yield mixed results in Belgium. According to news sources, merely a scant portion of the penalized providers have honored their fines.
Belgium's State Treasury Misses Out on 5 Million Euros
Over the past five years, just 11% of gambling businesses in Belgium have settled their fines, as revealed by the Belgian Public Broadcasting Company. Consequently, the Belgian state has suffered a significant revenue loss of five million euros.
De Standaard reports that the Belgian Gaming Commission is struggling, with the commission "gnashing its teeth in frustration" [Article in Dutch] and perceived as a "powerless tiger" incapable of enforcing the fines.
Offshore Providers Pose a Major Challenge
Approximately 95% of the penalized firms are foreign-based. Most are headquartered on the Dutch Caribbean island of Curaçao, which although part of the Netherlands, lies outside the EU. The Belgian Gaming Commission aims to strengthen cooperation with Curaçao's authorities.
However, certain small states that host gambling businesses show little inclination to collaborate with law enforcement agencies. For instance, Malta has recently introduced a highly debated gambling law to safeguard its gaming sector.
Worldwide Perspective
For years, the UK Gambling Commission (UKGC) has been regarded as one of the most stringent global gambling regulators [Article in English]. Last year, an unprecedented fine levied against gambling provider Entain made headlines in the UK.
Similarly, the gambling authorities in Germany, Netherlands, Sweden, and Spain have imposed high-profile fines in the past to curb the black market. Fines for illegal gambling activities and breaches of anti-money laundering regulations are also frequently imposed.
However, it remains a topic of contention whether the collection of fines is consistently successful in all jurisdictions grappling with offshore providers.
IP Blocking Offers Limited Solutions
At least, the Belgian government can restrict access to unlawful gambling websites utilizing technical means. However, the operators of such sites can often evade detection. A final legal verdict is still necessary.
In Germany, the Joint Gaming Authority of the States (GGL) has yet to acquire this capability, as mentioned in the recent report. Although the necessary technology is in place, legal concerns persist regarding this practice.
However, even if IP blocking were authorised in Germany, the issue remains that illegal gambling providers regularly launch new sites. Therefore, significant efforts are still required by the GGL and other international gambling authorities.
Despite the attempts by the Belgian government to block access to unlawful gambling websites, these operators often find ways to evade detection, leading to ongoing concerns. Furthermore, news reports reveal that the UK Gambling Commission has imposed substantial fines on gambling providers, such as Entain, in an effort to curb illegal activities. However, the success in collecting these fines is a subject of ongoing debate.
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