European Gaming Lawyer magazine Autumn 2015 | Page 17

The memorandum, which entered into force on 1 September 2015, lists the conditions under which a licensed bookmaker may offer bets on virtual sports events to the Belgian public. The list of conditions includes prior authorisation from the regulatory authority, partnership with a licensed supplier for bets involving a random number generator, compliance with the requirements applicable to bets committed in betting shops, technical approval and certification, record keeping, player information and time limitations. Remote gambling still under European scrutiny Meanwhile infringement proceedings introduced by the European Commission against Belgium on the grounds of the BGA are still pending. Even when the BGA was still at the stage of a draft, the European Commission already criticised its provisions on online gambling, especially those relating to the offline requirement and to server location in Belgium. According to the European Commission, such conditions result in a strong protection of the local offline market and create a distortion in competition towards foreign online operators in contradiction with the Treaty on the Functioning of the European Union’s (TFEU) principles of freedom of establishment (Article 49) and services provision (Article 56). Nevertheless, Belgium decided to pass the BGA without taking into account the detailed opinion received from the European Commission. Following the publication of its Action Plan on Online Gambling on 23 October 2012, the Commission addressed Belgium a formal request for information. In a statement of 20 November 2013, the European Commission then indicated its intention to officially launch infringement proceedings against Belgium on the grounds that its national legislation illegally restricts the supply of gambling services. In response, the Belgian government continuously tried to justify that the Belgian model safeguards the public interest and is in line with the case law of the Court of Justice of the European Union (CJEU) on gambling. Belgium argues, on the basis of the Santa Casa precedent (C-42/07, 8 September 2009), that “Member States are free to set the objectives of their policy on betting and gambling and, where appropriate, to define in detail the level of protection sought”. In line with this approach, the Belgian Government applied for an annulment before the CJEU for a non-binding Recommendation (2014/478/EU) on Player Protection, issued by the European Commission on 14 July 2014. In its Annual Report for 2014, published on 17 June 2015, the Belgian Gaming Commission strongly defends its Government’s action claiming that “public policy on gambling, which is a national competence, refuses the trivialization of gambling and wants to bring to human condition a better dimension of life. […] Eventually, it (the European Commission) aims to introduce within its arsenal of directives, online gambling operations which are disconnected from land-based gambling. It blurs the lines between the different categories of games inducing confusion between free and paid games in the minds of young people. This stage digs a gap between the citizen and the political world, and more specifically the European elite”. This statement shows a clear intention of the country’s decision makers and regulators to defend the BGA as it stands, despite all critics of non compliance with EU law. In the end, it seems only the European supreme judge will be able to settle the differences on online gambling regulation between Belgium and the European Commission. It would be interesting to see in which direction the CJEU’s decision goes. Should the European Commission’s arguments of lack of proportionality of the Belgian provisions of the BGA prevail, it is likely that the European Supreme Court’s decision will result in an overhaul of Belgium’s online gambling legislation, reshuffling the current market forces. In the meantime, Belgian Gaming Commission pursues its licensing policy based upon the offline requirement and enforces the provisions of the BGA through measures such as black listing, ISP and financial blockings. The long awaited Royal Decrees relating to the concrete operation of online games of chance (notified to the European Commission on 22 April 2014) have still not been adopted and somewhat add to the legal uncertainty relating to Belgian online gambling regulation. Momentary compensation can be found through the regulator’s ongoing efforts to outline the scope of the BGA and to adopt a pragmatic, approach which, at least, makes for a business-friendly environment, open for partnerships between international services providers and local operators. As a result, and despite all the legal issues and controversy around the BGA, the country was able to pass the threshold of over a million player registrations for online gambling in 2014. TATJANA KLAESER is a Member of the Brussels Bar Association and partner at the Law firm Klaeser Avocat, competent for the French and Belgian market. Tatjana has a broad experience in different areas of IP and IT law, especially in the gambling sector advising both land based and online operators in matters ranging from licensing to the development of tailormade strategies for local markets. She contributes to scientific research and publications within the area of gaming law, fair trade practices, intellectual property and information technologies and is often interviewed as an expert in these fields. Tatjana is further involved on an academic level where she has accepted a teaching position within the Sports Law Master course at the Aix-Marseille University. European Gaming Lawyer | Autumn Issue | 2015 | 17