An area of strict regulations and high taxes – Western Europe beckons operators non uk casino accepting UK players with the promise of wealth and success. And it is not surprising – this part of the world accounts for almost half of the total global online gambling market. In this article, we will take you on a journey through the western side of the old world and talk about the laws and economic potential of each country. In the last couple of decisions, Western Europe has become the iGaming epicenter. The need to raise tax revenues and the desire to control new technologies pushed most states in the region to legalize and regulate online gambling through the introduction of local licensing. This process allowed private operators to enter the richest markets in the world, replacing the old state monopoly system with gambling (the remnants of this system can be seen in the form of national lotteries). From Prom Lands like the UK and Italy to small but significant gambling jurisdictions like Malta, we bring you an insight into all the most important markets in the region.
Great Britain
The British gambling industry cannot be called anything other than massive. The industry employs nearly 117,000 people and has a total gross gaming income (GGY) of over £ 15 billion/year, with online gambling accounts for 40% of this figure – up 8.1% year-on-year to marks of £ 5.7 billion for the period 2019-2020. Gambling can be called an integral part of British culture – almost half of the country’s adult population makes bets every month. Sports betting is very popular. Horse racing, while in decline, also plays a significant role in the local gambling arena. The UK gambling industry is governed by the 2005 Gambling Act, which allows land-based and online casino operators to conduct business after being licensed by the local regulator, the Gambling Commission. The annual online casino license fee is calculated from Gross Game Revenue and ranges from a few thousand pounds to a million pounds, with GGY reaching the billion mark. Licensees are also required to pay 21% tax on gross income received from UK customers. As technology has advanced since the passing of the Gambling Act, the British government decided to revise existing regulations at the end of 2020 to update them and ensure the safety of vulnerable groups. Because of this, operators will likely have to tighten the process of identity verification and player verification.
Ireland
As in neighboring Great Britain, sports betting and horse racing attract a huge number of players in the Irish market. Land-based gambling in the country, however, is rather murky: while some sectors of the industry are strictly regulated, such as sports betting and lotteries, others are covered by unclear and conflicting laws. For example, although commercial land-based casinos are prohibited, they exist in the form of “private closed clubs” that have emerged through loopholes in the law. These clubs are essentially small casinos, to get into which you need to become a registered member (for free). Amendments to existing laws have failed to create a working legal framework for gambling establishments, so it should come as no surprise that the Irish government is planning major reforms in 2021. The current legislation governing gambling is the obsolete Gaming and Lottery Act of 1958 and the Act of 1933. When it comes to online gambling, many operators decide to obtain a license in jurisdictions with clearer regulations and then apply for permission to offer their services in Ireland. All this may change with the entry into force of new regulations due to the country’s attractive tax policy.
Belgium
Gambling in Belgium is regulated by the 2000 Gambling Act. In 2011, the law was amended in connection with the growth of online gambling. The Belgian Gaming Commission regulates a closed licensing system. The number of licenses for casinos and bookmakers is limited, and a license to operate online can only be obtained if you already have permission to operate on land in the country. These restrictions create very challenging market entry conditions for both local and foreign operators. Although the Gaming Commission may issue licenses to online operators in partnership with land-based establishments, all ten permits for online casinos have been issued at the moment, however, there are several licenses for online bookmakers. And considering that the total gross gaming revenue from online betting is € 138 million (an increase of 11.76% compared to 2018), as well as an attractive tax rate of 12% on GGR, this is a great investment opportunity.
Luxembourg
A country with a small but well-to-do population and the third-largest per capita gross gaming income in the European Union, Luxembourg could be an attractive destination for iGaming operators. However, the opening of an online casino in the Grand Duchy is not possible due to the existing regulations. The number of possible licenses for traditional casinos is formally unlimited, but Casino 2000 Montdorf has a de facto monopoly. A similar situation exists with the National Lottery, organized by public, non-profit organization under the supervision of the government, which, according to the 2009 Gambling Law, is the only organization that can legally offer online services.
