Over the years, gambling has established itself as one of the world’s most popular free-time activities. There’s no doubt that the widespread availability of the Internet is one of the main factors behind online gambling’s popularity, as it has promoted access to online casinos and sports betting.
European perspectives on online casino legalization and governance
In the European market of online casinos, there is a clear trend towards legalization, accompanied by better rules. However, experts at gazeta.lviv.ua note that not all countries are equally receptive. In many countries, those guilty of illegal gambling face heavy fines or even years in prison, depending on the seriousness of the offense and the country’s laws.
Since the end of the 1990s, online casinos and unlicensed (i.e., unauthorized) sports betting sites have proliferated in countries with low levels of regulation or in island states and territories: these are the hubs of the global online gaming network.
For some territories such as Malta, hosting online gaming services has become the focus of veritable national economic strategies. In 2020, Malta’s online gambling industry consisted of 450 gaming companies and almost 12,000 employees. That’s 5% of the island’s workforce, 64% of whom are foreign. Compared to tourism, the 300 gaming licenses granted by the MGA (The Malta Gaming Authority) generate ten times more revenue for the tax authorities.
Every day, online gaming sites appear and disappear, offering their products to the whole world without regard for physical borders or national regulations, hence the attempts at regulation. Delimiting and organizing gambling territories represent a financial windfall, more or less important depending on the territory, but sometimes structuring when it comes to Malta or Gibraltar, tax havens for online gambling.
From Spain to Ukraine: Online gambling approaches in Europe are not on the same page
No European legislation has been imposed on gambling for the time being, so each country is free to choose whether or not to open up this market. But how can we control the circulation of gambling money? How can we prevent players from betting on foreign gambling sites? Faced with these questions, which are not easy to answer, the member countries of the European Union have taken different positions. As legislation varies from one country to another, gamblers are well advised to be vigilant regarding the position of their country of residence.
The rules are different throughout Europe – in Germany, for example, gambling operations require authorization. The Criminal Code restricts the organization of lotteries and games of chance to licensed operators. With the exception of betting on horse races, gambling is essentially limited to games played on machines installed outside casinos.
However, following the legalization of gambling in 2021, dozens of new online casinos have begun to open in Germany. Many gambling sites have offshore licenses from Malta, Curacao, and the UK, so they are legal in a number of European countries, including Germany.
In Switzerland, internet gambling is prohibited, and online casinos and poker sites are illegal. The Swiss Federal Gaming Board criminalizes the operation of a gaming server, as well as advertising and marketing activities designed to promote online gambling. However, gamblers who merely participate privately in games are in principle not punishable.
In Ukraine, which is currently not part of the EU, the situation is completely different – players seem to be gradually developing a taste for gambling. However, it doesn’t have to be necessarily only for money, players also use offers of online casinos with no need to bet real money. Among the most popular can be found for example Slotscity.
And who in Europe plays online casino games the most? Gaming plays an important role in the lives of Spaniards, who are the Europeans who spend the most money on online games, almost 700 euros per year. Gaming legislation was introduced in January 2012. It is estimated that the number of Spanish players has risen from 200,000 before the legislation, to one million.
