European Gaming Lawyer magazine Autumn 2015 | Page 15

into an otherwise rather restricted market. Although the concrete selection criterions for potential candidates to a casino concession still need to be defined, interested parties should move quite quickly to get a head start on the application process, which implies negotiations with the relevant local administration for the concession itself as well as filing a licence application with the Belgian Gaming Commission. It is important to note that concession agreements by the relevant communal administration and licences by the regulatory authority go together: Article 4 of the Royal Decree of 26 June 2002 provides that concession agreements shall automatically terminate with the retrieval or the ending of their corresponding Class A casino licence (valid for a renewable period of 15 years). On the other hand, on the basis of the BGA, being entitled to a casino concession is a condition to remain an A class licence holder. The expiry of casino concessions Another factor for change in the Belgian casino landscape can be found in the impending expiry of several landbased casino concessions. At a Study Day conference held by the Belgian Gaming Commission on 27 May 2015, the regulator stressed that in the coming six years, eight out of the currently nine land-based casino concessions will terminate and that new concessions must be concluded on the basis of a transparent, proportional and nondiscriminating procedure. Indeed, on the grounds of Article 76 of the BGA, concession agreements which have been concluded before 31 July 2001 shall remain effective, unless a shorter contractual period is foreseen, for a maximum period of 20 years. Hence, these concession agreements can only be valid until 31 July 2021 at the latest. The regulator’s conference documents, published on 28 May 2015, provide an exact timeline regarding the impending expiries (table below). In the light of this context, the Belgian Gaming Commission underlined that the (almost automatic) extension of existing concession agreements by local administrations is no longer something obvious, especially with respect to competition law and general European law principles. Local administrations are thereby invited to carefully examine all applications before deciding to renew a concession agreement. Gambling on international cruise ships Furthermore, the Government’s Agreement has made clear the intention of the coalition parties to authorize international cruise ships, which have an onboard casino or gambling hall, to operate these in Belgian waters until mooring in a national harbour. The gaming halls sector Room for growth in the online segment As for casinos, the operation of gaming arcades is subject to a licence from the Gambling Commission and the conclusion of a prior concession agreement with the commune. The number of gaming halls is limited, by Article 34 of the BGA, to a maximum of 180. On 2 April 2014 the Belgian Gaming Commission attributed the last available license to the applicant who came first on a waiting list, so that the maximum number of gambling arcades admitted on the Belgian territory has now been reached. Despite the strong demand for gambling halls licences, the sector in general has been facing difficult times in terms of revenue, showing important differences from one operator to another. The operators doing best are those which 2016 2017 2019 2020 2021 2023 Middelkerke Knokke Namur Brussels Blankenberge Spa Chaudfontaine Ostende Dinant Source: A01. Van Cauwenberge “Nota studiedag: thema Concessies van kansspelinrichtingen Klasse I (Casino’s) Conclusie” European Gaming Lawyer | Autumn Issue | 2015 | 15