ECA calls for urgent Europol remit expansion against illegal gambling

The European Casino Association (ECA) is raising the alarm. It is calling for an urgent expansion of Europol's mandate. The goal is to tackle the rapid growth of the illegal gambling sector in Europe. This demand comes amid the increasing challenges posed by the unregulated market for players and regulated providers alike.

The ECA's call underscores the need for a coordinated European strategy. Currently, illegal operators often operate across borders. National authorities quickly reach their limits. A stronger centralization of law enforcement seems essential to many industry experts.

Numbers and facts

The ECA emphasizes that illegal gambling not only deprives tax revenues. It also endangers players who do not receive protection from regulatory authorities. Illegal platforms do not adhere to player protection measures or anti-money laundering regulations. This creates a gateway for crime and fraud.

The exact size of the illegal market is difficult to quantify. However, estimates suggest billions in Gross Gaming Revenue (GGR). GGR is the gross player revenue, which is the difference between players' stakes and prize payouts. The shadow economy in gambling is growing. It undermines the efforts of licensed operators. The security and integrity of the market suffer as a result.

Background

Gambling regulation in Europe is fragmented. Many countries have their own laws and supervisory structures. This makes it easy for international criminals. They exploit loopholes and operate from jurisdictions with less regulation. The ECA sees Europol as a central body that can consolidate these fragmented efforts.

An expanded role for Europol would enable better coordination between member states. Information exchange would also improve. This could help to dismantle cross-border criminal networks more effectively. The President of the ECA, Hermann Dikti, commented:

"The fight against illegal gambling cannot be won by national authorities alone. We need a common European front, and Europol is the only organization that can take on this leadership role. Protect the players, protect the licensed operators." - Hermann Dikti, President of the European Casino Association

Dikti highlighted the urgency of the situation. Illegal providers advertise aggressively. They circumvent youth and player protection requirements. They often offer bonuses that would not be allowed in regulated markets.

Why it matters for German players

For players in Germany, the ECA's demand initially means no direct change. Germany has introduced its own strict regulation with the State Treaty on Gambling 2021 (GlüStV 2021). This regulation aims to channel the market and strengthen player protection. It is intended to guide players to the whitelist of the Joint Gambling Authority of the Federal States (GGL). All legal online gambling providers are listed there.

The GlüStV 2021 mandates binding measures. These include a stake limit of one Euro per spin for online slot machines. In addition, there is a monthly deposit limit of 1,000 Euros. The cross-state gambling supervisory system LUGAS centrally monitors these limits. It aims to prevent players from circumventing limits at multiple providers simultaneously. German players can thus rely on licensed providers being strictly controlled. Illegal providers do not adhere to these rules. They often offer higher limits and unregulated bonuses. They are not connected to LUGAS. The risk for players there is considerably higher. Among other things, they risk losing their deposits, as there is no legal recourse.

What it means for GGL-licensed casinos

For online casinos with a GGL license, a stronger Europol involvement could be a blessing. They contend with unfair competitive conditions. Illegal providers can offer more attractive – yet risky – offers due to a lack of regulation. Better law enforcement would level the playing field. It would help regulated providers compete effectively. This could also bring more players back to the legal market. This strengthens player protection overall. Furthermore, it increases tax revenues for the state. Protecting the regulated market is crucial. It ensures the integrity of the entire gambling sector.