If you’re reading this, you’re a fan of, or at least interested, online gambling. As such, you’re also aware that some online gaming sites and casinos are better, and certainly safer, than others. So a recently passed British law announcing that its Gambling Commission would now be policing many of the world’s regulated online casinos is a good thing, right?
Many online casinos are licensed to operate out of the tiny nation of Gibraltar, a British owned territory. Casinos here and in a few other locations are the only ones that British citizens may currently gamble in legally. This new law will allow gambling in a larger foreign market. Companies from as many as 165 jurisdictions around the world are taking advantage of this law to apply for British gaming licenses.
Well, competition’s not a bad thing, correct? However, Peter Howitt, head of the Gibraltar Betting and Gaming Association (GBGA), disagrees. He claims that the U.K. Gambling Authority has in fact, no authority to monitor and enforce regulations with these potential new casinos, because they fall outside of British sovereignty. New gambling law + new tax law = U.K. Gamblers moving to foreign unregulated sites, Howitt feels. The results of his equation? He feels that “significant” numbers of “unprotected” British players will begin using “unregulated or poorly regulated” gambling sites, and suffer financial and security theft as a result.
Is this sour grapes on the part of the GBGA, unhappy about losing potential customers? Is there anything they can actually do keep this from happening? Possibly. In addition to issuing a formal complaint, the GBGA may have found a legal loophole. Through their legal firm Olswang, the GBGA claims that the new U.K. Law is in violation of Article 56 of the Treaty on The Functioning of the European Union (TFEU). In a non-legalese nutshell? Olswang is claiming that this new law will have the British government sticking its nose into places where it doesn’t belong. Because of the filing of Olswang’s claim, the British government and its Gambling Commission can’t move forward with the new law until a judicial review is undertaken. They have 14 days to respond to the GBGA’s claim.
GBGA’a alternative to the new British law is a proposed program called “Passporting”. Under “Passporting”, British licensed casinos in various jurisdictions would be responsible for their own regulating, but would share information with the Gambling Commission.
Will the GBGA prevail? Is their concern for the online gambler sincere? Certainly as an industry, they have much to lose with potential increased competition and a loosening of industry standards. But as this case looks to drag on in courts for some time (and you probably don’t want to put your money on the GBGA), gamblers can protect themselves in the meantime. They are advised to thoroughly research any casino’s country of origin. They are advised to research said country’s gambling regulation (if any) practices. And as always, they are warned that when gambling in foreign waters (even from their sofa) they may be losing more than wagers.