Belgium Ignores EC Warning On Its Online Gambling Law

by Ulrika Lomas, Tax-News.com, Brussels

08 December 2009

The European Gaming and Betting Association (EGBA) has expressed such grave concerns on the adoption of the Belgian law for gaming and betting that it could take legal action. The European Commission already issued a Detailed Opinion in June against the draft law for violating European law requirements.

Sigrid Ligne, Secretary General of EGBA, said: “it is baffling that Belgium does not take into account the opinion of the European Commission that crucial elements of the law are in conflict with EC law requirements. And even more so with a view to the upcoming Belgian presidency of the EU: how can Belgium show leadership in the EU, if it blatantly chooses to ignore the EC Treaty?”

The Belgian draft law was notified to the European Commission and the other member states on March 27, 2009. It subsequently received a Detailed Opinion of the European Commission because certain aspects are not compatible with the EC Treaty.

A number of members of the Belgian Senate and Parliament did raise the objections of the European Commission against the law in their discussions, including:

  • The requirement for online operators to be established in Belgium;
  • The unjustified limitation of the number of available licenses;
  • The requirement to have a server located in Belgium; and
  • Criminal sanctions on consumers wishing to play with EU licensed operators.

Despite these discussions, the Belgian government did not see the need to change these requirements and a majority in the Parliament voted in favor of the law on December 3.

Ligne added that: "the law is not only highly questionable from a legal point of view. In the digital age, limiting the provision of online services only to those exploiting a betting shop or casino in Belgium doesn’t fit with reality. A high level of consumer protection can be achieved by specific and targeted legislation, not by protecting the operators with a vested interest in the current situation."

The EGBA will study the law in detail and may start legal action as soon as the law comes into effect.

A comprehensive report in our Intelligence Report series examining the new possibilities that offshore e-commerce open up for business, and analysing the offshore jurisdictions that have led the way in offering professional e-commerce regimes for international business, with a particular focus on e-gaming, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report6.asp

 

 






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