The European Commission today extended its review period for the UK government’s proposals to regulate online gambling in Great Britain on a point-of-consumption basis by a month, after Malta issued a detailed opinion.
The details of offshore online gambling hub Malta’s opposition to the Draft Gambling (Licensing & Advertising) Bill have not been published at this stage, but detailed opinions issued during the statutory three-month standstill period address potential and unjustified barriers to trade between Member States.
The UK must now report back to the Commission on what action it plans to take on the detailed opinion, and must not make the regulation for a total of six months from original notification, or until 3 June 2013.
Malta’s position under the UK government’s planned “light touch” regulatory regime aimed at “avoiding duplication by relying on the work of other regulators” is unclear at this stage.
Maltese licensees are currently able to transact with British consumers and advertise in the UK, but would be required to obtain a licence from Great Britain regulator the Gambling Commission to continue doing so from December 2014, should the Draft Gambling (Licensing & Advertising) Bill become law. The UK’s proposals, if implemented, could have economic consequences for the EU Member State.
A host of operators and industry associations have expressed doubts over the legality under EU law of the UK government’s plans, arguing that they have failed to identify exactly how the new regulations would improve on the existing regime and that they are merely a cover for the Treasury to raise tax revenues.
Operators in Gibraltar, where most of the UK’s leading online businesses are licensed, confirmed last month they will initiate a joint legal action if the UK decides to regulate and tax online gambling at the point-of-consumption. The Gibraltar Betting and Gaming Association has argued the proposals are “unlawful in terms of EU, national and international law and are liable to successful legal challenge.”
Gambling Commission CEO Jenny Williams and the Department for Culture Media and Sport’s top civil servant Philip Davies consistently struggled during MP’s pre-legislative scrutiny of the new bill to identify problems with the current system, with Stephens justifying its replacement in terms of future, unsubstantiated threats to British consumers.
Davies also declined to provide a verbal answer to Committee chair John Whittingdale’s question as to whether or not the regulations would breach European law if it was established that making offshore operators pay tax was the government’s motivation for introducing them.
Article written by Stephen Carter
