Regulating the online casino market is necessary in order to create an environment that is safe and fair both to players and operating gambling companies. Online gambling is still a relatively new field, and one that is constantly evolving. That’s why regulations for the gambling market also have to keep evolving and changing at the same pace as the market does.

Ever since the UK left the EU, taxes and regulations have been complicated. Before, there were uniform rules for the UK and the rest of the EU, but the UK has now gone down its own path. Does this also affect gambling? Today, we’re looking at how the online gambling regulations compare and where the biggest differences lie.

Why Are Gambling Regulations Needed?

There are many reasons why sophisticated and well-functioning gambling needs regulations. The goals of regulating gambling in the EU and UK include the following:

• Ensuring that players have a safe experience and are aware of the terms presented to them.
• Preventing money laundering and fraud.
• Discouraging players from cheating at games by using bots or other foul play.
• Decreasing problem gambling and addiction by giving users the tools they need to quit when they want, and making gambling less addictive.
• Protecting the vulnerable, like underage players, through KYC requirements.

Things are made more complicated by the online nature of online casinos. In many ways, it can be easier to cheat and deceive when you’re interacting through a screen. Detecting problem gambling early on is also more complicated. This means that online casinos often follow strict regulations, sometimes stricter than the ones land-based venues have to follow.

Different Licensing Regimes in the UK and EU

The EU has a lot of shared regulatory frameworks, but when it comes to gambling, there is no sector-specific EU legislation. While EU countries have to follow certain general laws about consumer protection and freedom, they’re mostly free to organise their gambling services whichever way they want.

The system used in many EU countries is one where national authorities regulate casinos within their jurisdiction by allowing online gambling companies to apply for casino licences. While each country where online gambling is legal has their authority, it’s not uncommon for players to choose an online casino regulated by another EU authority than their own. The exact regulations vary depending on which gambling authority we’re talking about, and so players can choose one that aligns with the experience they’re looking for.

The gambling authority of the UK, the United Kingdom Gambling Authority, also known as UKGC, is one of the reputable ones. This authority is known for strict rules, ensuring not just fair play but also decreasing addiction through strict regulations.

One of the regulations that casinos under the UKGC have to follow is being part of GamStop, a joint tool where a UK player can turn themselves off from gambling for a certain period.

There are reliable EU gambling authorities with no GamStop checks required, such as MGA, the Malta Gaming Authority. MGA is one of the most well-liked regulators on the market because of the strong focus on safety without degrading the quality of the gambling experience. Besides MGA, these include the Curaçao Gaming Licence and the Gibraltar Gambling Licence.

EGBA

European Gaming and Betting Association is a Brussels-based trade association working with national and EU authorities towards a safe gambling environment for players online. While EGBA has given out 225 gambling licences, it’s not any kind of official regulatory body over all members of the EU. Membership is voluntary for gambling companies based in the EU that also aim to do their utmost to protect customers. Many of the biggest EU gambling operators are members; the likes of Bet365, Betsson, Kindred Group and William Hill.

As mentioned, this is, however, not an EU legislation regulating gambling, but an organisation that allows for voluntary membership. Lots of other EU casinos legally operate on the market in the EU without being members of the EGBA.

What About Taxes?

In the UK, you don’t have to pay tax on casino winnings. Regardless of the size of the win, your wins won’t count as income and won’t be subject to income tax. 

In the EU, it’s a little different. Exact laws vary by state, but countries will often allow tax-free winnings for players as long as their wins were from casinos regulated by other members of the European Economic Area. If, however, playing at a casino outside these countries, players could be subject to tax if the winnings exceed a certain amount.

Final Thoughts

The fact that the UK is taking player safety seriously is a good and important thing, but the rigidity of the regulations that the UKGC introduces can make it difficult to experiment and innovate. While some EU countries have regulations that are equally or even more strict, each country has the freedom to experiment.

There’s no guarantee that the EU won’t eventually decide to impose strict standards and regulations applying to all its members. Lots of data on player behaviour is already being collected and could be used to create an evidence-based regulatory structure that promotes players’ well-being without undermining their right to choose the entertainment they want.