ShareFor some time now, the online gambling market in Europe has grown exponentially, transforming into one of the most exciting and rewarding parts of the digital economy. However, as more players and betting operators join the EU market, there is an increased call for regulations supporting the industry's long-term development while protecting players. This piece highlights upcoming regulation changes and how they can affect EU casinos.
The Adoption of Legislative Frameworks and Regulations
Every member of the European Union is now encouraged to have their own unique rules and regulations guiding online gambling activity. The rules may differ from one place to another and will prevent specific platforms from monopolising the entire region. They may also set particular requirements for betting operators to start working in the area. So what this means now is that EU casinos must meet specific financial and social responsibility criteria to be given a licence.
When regulations are implemented, it becomes more difficult for unreliable betting operators to function effectively. It'll also be easier to distinguish between licensed and unlicensed platforms.
Here's a list of the requirements that a betting operator must obey to operate in Europe:
● Presence of Authorised Capital: This refers to a certain sum of money that betting operators are always expected to have stored away. The amount of authorised capital may vary from one region to another. On average, this figure is usually between 100,000 - 500,000 euros.
● Confirmation of Financial Stability and Presence of No Debts: The regulatory body will carry out due diligence to identify the current state of finances of the betting operator to find out if they are not pressured to recoup lost funds or pay long-term debt. If an operator has sketchy finances, it may be a sign of unreliability.
● Goodwill of the Betting Operator’s Owners and Principal Officers: Also, the owners and principal officers of prospective betting operators must be free from any incriminating records. They must also not have any known criminal affiliations. To confirm that owners and principal officers are who they are, regulatory authorities will carry out a background check on them.
● Presence of an Effective Risk Management System and Measures to Prevent Money Laundering: Online gambling is undoubtedly risky. So, betting operators must incorporate risk management systems that prevent bettors from losing too much money at once. There should also be limits to their deposit and withdrawal channels to avoid money laundering activities.
● Compliance with Software, Technology, and Security Standards: Online casinos are powered by software known as a Random Number Generator. This software is responsible for randomising results and creating a fair playing ground for everyone. Regulatory bodies will confirm if this software has been programmed to favour the house more often than usual. They will also inspect the platform to identify the security measures to protect client data. If a betting operator lacks suitable security measures and a reliable random number generator, they will not get a licence.
● Level of Staff Training: While a betting platform is powered by software, there's still some level of human intervention needed. That's why the staff of an online gambling company must have the required qualifications, experience, and training to work effectively. Poorly trained staff may struggle to keep up with the endless activity on your platform, leading to costly errors.
Lengthy Application Processing Time
When building an online gambling platform, don't rush to hire SEO experts like Revpanda to optimise your platform. You should apply for your gambling licence first. Why? The application processing time for a gambling licence in many EU countries may vary from months to a year. So, the SEO practices applied to your platform may become obsolete if too much time passes.
You'd note that the application processing time includes the period it takes to apply, collect all necessary documents, get verified by regulatory authorities, and get feedback from regulatory bodies. The purpose of a lengthy licence application time is to discourage any betting operators who want to join the industry for some quick bucks.
EU Gambling Ad Regulatory Changes
While the iGaming industry has grown exponentially, the new regulations that EU casinos must follow go beyond their licensing and also affect how online casinos advertise their products. For a long time, betting companies have been allowed to market their products without restrictions. This has led to an insane number of gambling ads and social media posts.
In response, certain EU countries have tightened up rules around online gambling ads. However, each country's approach differs. In Italy, all forms of gambling advertising are prohibited. According to the Dignity Decree, no gambling advertising is allowed on radio, TV, the press, or the internet. This regulation came after about 3% of Italians began to suffer from gambling harm. While the absence of gambling ads on TV, radio, and the internet doesn't stop people from betting at shops and casinos, it reduces the social pressure to be a bettor.
Belgium is another country with a strict stance on gambling advertising. Like Italy, this region bans all gambling ads, from radio to the press and online. At first, the Belgian government started by banning gambling ads from children's shows and public posters. However, these measures seemed inadequate. The government ended up banning all types of gambling advertising in the country.
Another country with regulations restricting gambling ads is the Netherlands. This region refuses to ban all gambling ads entirely. Instead, they focused on limiting the mass marketing of gambling products on search engines, TVs, radio stations, and public spaces. They aim to avoid bombarding children and young people with gambling-related content.
