Why Isn’t There a Single European Law for Online Gambling?

Imagine a unified European market where everything flows freely. Now, consider online gambling. The reality is quite different. Instead of a single set of rules, each EU country operates under its own regulations. This begs the question: why isn’t there a unified “European gambling law” or a “European SRIJ” (Serviço de Regulação e Inspeção de Jogos do Turismo de Portugal – the Portuguese gambling regulator)? Many in Portugal, and across Europe, wonder about this, and here’s a breakdown of the key reasons.

The Principle of Subsidiarity: National Autonomy Reigns

The core reason lies within the EU Treaties. Gambling is not an area of exclusive EU competence. The principle of subsidiarity dictates that Member States retain the power to legislate unless EU intervention is strictly necessary. The Court of Justice of the EU (CJEU) reinforces this. While online gambling is a service that should circulate freely, countries can restrict this freedom for reasons of general interest, such as protecting consumers and preventing fraud. However, these restrictions must be proportionate and non-discriminatory.

Fragmentation: A Complex Puzzle

Why do countries prefer to maintain national control?

Cultural Differences and National Interests

Perceptions of gambling vary widely across Europe, from state lottery traditions to more liberal approaches or strong moral considerations. Harmonizing these views would be nearly impossible. Furthermore, gambling generates significant tax revenue, and each state wants to control this income and protect its national operators from the competition that greater openness would bring.

Consumer Protection and Public Order

Each country argues that it needs tailored rules to effectively combat addiction, protect minors, and prevent crimes like fraud or money laundering, adapted to its specific social reality. A single European law might be seen as less effective in addressing local problems.

Industry Lobbying

Different sectors of the industry, including lotteries, physical casinos, and private online operators, have distinct interests and engage in lobbying at both national and European levels, making consensus on common legislation difficult.

Attempts at Harmonization

The EU hasn’t ignored the issue. The European Commission has published documents proposing greater cooperation between states, focusing on consumer protection standards and combating illegal gambling. National regulators, like the Portuguese SRIJ, also collaborate and share practices in forums like the GREF (Gaming Regulators European Forum). However, this has resulted in dialogue and recommendations, not binding legislation for all. Complete harmonization has never been the ultimate goal.

Consequences for Players

What does this patchwork of regulations mean for players?

Advantages and Disadvantages

The main advantage is having a regulation (SRIJ in Portugal) tailored to the local context, with clear rules, focused protection, and an accessible regulator. The tax model, generally without taxing player winnings, is another positive aspect. The disadvantage is being limited to local sites, without legal access to the potentially wider offerings of operators licensed in other EU countries, which can be frustrating. These differences between neighboring markets are noticeable.

The Future

Will there be greater unification? It seems unlikely in the short to medium term. The trend is to maintain national regulation. Perhaps there will be a slow convergence in specific aspects, such as technical standards and responsible gambling, but a single European gambling law remains a distant scenario.

Conclusion: The Lottery of European Regulation

In summary, the lack of a single gambling law in the EU is due to subsidiarity, deep cultural and economic differences between countries, and each state’s desire to protect its citizens and interests in its own way. While it may seem counterintuitive in the Single Market, it reflects the complexity of the EU. For players, the essential thing is to know and trust the national regulatory framework. Playing only on sites licensed by the SRIJ is key for safety.