Like any country in the world, the European Union has strict laws regarding online gambling. Every country that legalizes online gaming—and the EU is pushing for all countries to do it—must be in accordance with the Treaty of the Functioning of the European Union. Of course, every country is free to decide if it accepts those laws. Some allow all forms of gambling, while others only permit some gambling types.
Why is Regulation Important?
Licensing and regulation of online casinos the broader European Union plays a major role in maintaining the safety of this industry. For example, Ireland has legalized online gambling, including poker, online casinos, and sports betting. Irish players have a long list of casino sites to pick from, playing the most popular games or betting on their favorite sports.
Regulation plays a role in player protection, keeps gambling responsible, and installs anti-fraud measures too. You wonder how? Each county that legalizes online casinos has a governing body that issues licenses. This body thoroughly reviews the licensee’s operations, in that way ensuring that it checks all boxes before it’s granted a license.
In short, online gambling regulation is there to make you as a player feel safe. You shouldn’t worry about stolen data or funds at a licensed casino. This is not the case when playing at unlicensed casino sites where you’re not covered by a local governing body in the case of any troubles.
Who Issues Licenses?
As mentioned previously, licenses are issued by governing bodies of countries that legalize online gaming. The United Kingdom Gambling Commission is one such body, for example. It regulated and oversees all forms of gambling in the UK. It also oversees any offshore operators that want to operate on the UK market, providing they get the license.
Most of the markets in the European Union stick to the same formula. They have legalized online gambling, but operators must possess a license from a local governing body in order to operate. The UKGC is the most well-known organization, and one that many use as a model for their own regulations.
It’s widely considered the strictest governing body with the most rules in place. The UKGC penalizes operators for gaining unfair advantage over players. For example, it fined operator Gamesys in early 2024 for failing to meet AML and social responsibility requirements. The fines are truly draconic. Gamesys had to pay over £6 million to cover the damage. And that’s not all. Operators such as bet365 were also fined by the UK Gambling Commission for a series of failings.
Without a regulator in place, such failings could have a negative impact on the market as a whole. They may hurt customers (players) which goes against everything regulators stand for. There are no gambling giants and no one is spared from the UKGC’s operations. If they broke the law, they will be fined.
Differences in Online Gambling Regulation at EU Countries
While the UKGC seems to be the golden standard for online casino gaming in the EU, other governing bodies have their own unique laws. We’ll take a look at the differences in regulation—no matter how slight—among the top countries in the EU below.
• Germany: Germany has only recently liberalized iGaming laws. It currently allows for licensed online casinos and poker sites. States can offer their own regulations, and the law is based on the Germany State Treaty on Gambling.
• France: online gambling in France is legalized and regulated by ARJEL. Surprisingly, while it allows online sports betting, horse racing, and poker, online casinos are prohibited. Players can still access offshore casinos, but they don’t have protection.
• Italy: online gaming operators offering casino and sports betting services are legal in Italy with a license. The market is regulated by the AAMS.
• Ireland: online casinos in Ireland are fully legal. The government has legalized nearly all forms of gambling, including online casinos and sports betting.
• Spain: online gambling is fully legalized in Spain. Online casinos, sports betting sites, and online poker games are all legal with a license issued by the DGOJ.
• Finland: compared to the other countries on this list, Finland has a monopoly system for gambling. It’s not banned, yet only state-owned gambling sites can offer such services.
• Poland: similar to Finland, Poland has a state monopoly over online gambling. Not all forms of gambling are legal under Polish law, and the regulations are pretty strict.
• Sweden: Sweden is one of the top regulated gambling hubs in the EU. Online gambling is fully legal and regulated by the Spelinspektionen.
• Luxembourg: here’s a country which doesn’t agree with EU’s principles on online gambling regulation. Luxembourg has banned all forms of gambling in the country. Players can access offshore casino sites at their own peril.
• Cyprus: online casino gaming is illegal. The country’s only legalized form of online gaming is sports betting.
• Malta: Malta is one of the most popular hubs for online gambling in the EU. All local and offshore gambling action is overseen by the Malta Gaming Authority, one of the most respected regulatory bodies in the European Union. The MGA is widely considered the second-best license for operators, right behind the UKGC.
What Are Offshore Casinos?
We’ve already mentioned offshore casino sites as an alternative for players in jurisdictions where online gambling is illegal. That’s something that repeats itself in many legislations. In countries where online gambling is legal, like the UK, even offshore casino sites are required to get a license in order to offer services to players. But, in most jurisdictions, they operate outside the confines of local laws, freely offering their services to almost any European country’s players.
For players, it’s perfectly legal to join these casino sites. But, you have to understand that you’re playing outside of the law. All the benefits that come with playing at licensed casino sites are now gone. You don’t have protection in case anything goes awry, so hope for the best outcome.
Conclusion
Online gambling regulation is required in order for the market to thrive. While not everyone will be thrilled by the rules and regulations, the fact remains that regulators are there to help players – not push them away. They also allow operators to conduct their business in a responsible manner, which is important for a safe and enjoyable gambling experience.
