Gambling legislation in Europe
To date, the principle of "gambling" gambling as we usually mention in our discussions is unknown.
Our first references come from China back to 2.300 BC, however through historical sources it is easy to understand that each society had developed its own form of gambling in one way or another. From ancient Greece, to ancient Rome, and from there to Napoleon's France and Elizabeth's England, we know that the rich, at least in the first place, had fun through gambling that over the years took various forms to evolve into what we know today at online bookmakers (betting & casino). Today, more than ever, the need to regulate and establish an institutional framework governing gambling has become more urgent, and this debate, as we will see below, remains open in many European countries. Among them for betting Greece.
It is also very interesting to note how much the sports betting and casino space (especially online) has changed in the last 10 years, since France and Italy (the first countries) decided to proceed with the licensing of betting companies and casino. During these years and until today there are countries (Romania, Spain) that have managed to regulate their market and generate very significant revenues for both the state and the providers by increasing the total turnover. But there are also countries that try to make something more attractive for both the providers and the players themselves (Belgium, Italy).
Below we will see in detail what is valid in the largest European markets, while we will remember (starting from them) the institutional framework that exists today for both Greece and Cyprus.
Greece & Cyprus
In Greece, the debate over the licensing of online casinos and betting websites had started long before the law was passed in 2011. A law that is still in force today and allows 24 providers to legally offer their services in the country by paying taxes to the state. . These temporary permits at that time did not allow or rather prevented many big names in the field to express interest since the whole institutional framework and was absolutely not clear and had many gaps.
Of course, until 2013, when the government, with the creation of EEEP, created the first Blacklist by blocking access, they offered their services in Greece undisturbed. As everything shows, in 2021 we will have a new legal framework (already passed by the European Commission) that will replace the existing one, this time giving permanent permits.
The amounts will be € 3.000.000 for sports betting and € 2.000.000 for other games of chance. Other online games include casino gambling, poker and its variants, which are available online and are played either live or using a Random Number Generator (RNG).
An application for one or both types of license can be submitted by any interested party with the validity of each license being 7 years.
Many efforts have been made in Cyprus to regulate the framework in which online betting and casino game providers will be able to operate legally and safely. The truth is that after the events of 2013 there was a highly attractive climate for attracting foreign investment. A first attempt was made in 2017 with the corporate tax rate being 13% on gross profits, however the bureaucracy and the somewhat attempt to protect OPAP's monopoly discouraged the big names in the field from showing interest.
In May 2018, a new law was passed, in order for the Republic to comply with the European framework. The tax rose significantly to 22.5% of the company's gross profit for each accounting period, but this time the interest was greater and companies such as Parimatch and Fonbet now operate legally offering their services to Cypriot players.
United Kingdom
One of the most mature and well-organized gambling markets is undoubtedly that of the United Kingdom. After all, the English have a centuries-old tradition in gambling and especially in betting and horse racing.
The UKGC is the official licensing body in the UK and one of the strictest regulators on the planet. Many times we consider Great Britain as the "paradise" of gambling, but in 2018 there were frictions between the providers and the state. This is because for the first time then betting limits were set on slots and casino games, while specific offers from providers were banned because they were considered to encourage people to gamble and send the wrong message to young children.
Nevertheless, the UK market remains by far the most attractive not only because of the 15% corporate income tax, but also because it has the highest average per capita expenditure in all of Europe.
Germany
Problems and instability still characterize the German gambling market today, because some states such as Schleswig-Holstein in the north continue to operate autonomously. It is mainly through this state that many companies have found a way to provide services to German players.
Efforts have been made to regulate the market since 2000, but misunderstandings between the states have not allowed a single federal law to be enacted. Of course, the 5% tax rate is not small, but the fact that we are talking about the largest country in Europe in population and the strongest economy, has allowed many offshore providers to offer their services in Germany.
However, it seems that 2021 will be a year of change for Germany as well, as a new single bill is already ready which provides very strict conditions for both providers and players.
Suffice it to mention that there is a monthly bet limit up to the amount of 1000 € (for all), which can increase to 10.000 € for some of them and if they meet certain conditions!
Italy & Spain
2018 was a significant year of changes in the anachronistic regulatory framework that until then was in force in Italy. A law that provided for a 10% tax on the betting turnover. The changes were significant because a ceiling tax of 22% on the total turnover and not the profits of all online bookmakers was introduced, while an article was added that allowed games to be held, such as the slots that were explicitly banned until then. Of course, the good news did not last long as the new Salvini government banned by law the advertising of betting pages and casinos in the media and in groups. So online betting that cost millions in advertising was found with its back to the wall with many of them leaving the market.
In the case of Spain we do not have much to say since its model is highly successful with profits for state and providers steadily increasing year by year. The Spaniards built a framework from the start with a serious 25% turnover tax on both betting and casino and betting together. The law has been in force since 2012. So simple…
Rest of Europe
One of the most successful regulation models is that of Denmark, where since the beginning of 2010 and moving seriously, it has applied a 22% tax on GGR (gross profit). As a result, big names in the field secured licenses, thus satisfying the Danish players, but also the State. It should be noted here that with this development and the Danish monopoly, it was "forced" to evolve, to enter the internet and the truth is that it is doing well.
In Norway, on the other hand, there is a strange regime at least so far, where on the one hand we have the powerful state monopoly and on the other the "illegal" betting and casinos that offer their services without any problems but without "provoking" with advertising in TV or football teams. Probably (from what has been published lately) in Finland we will have developments in 2021.
An example to follow is certainly Romania, which in 2015 created a very competitive and attractive legal framework with a 16% tax on gross profits. At the same time, it set annual lump sums that are affordable, not only for the big names in the field, but also for new or smaller providers.
Finally in Sweden in 2019 we had the regulation of the market with an unlimited number of licenses for internet providers, with the terribly favorable tax regime of 18% on gross profits (GGR) which will be accompanied by a one-time amount each year depending on the games it will offer each provider and which in no case will exceed 70.000 euros. The result was literally an influx of online gambling providers to secure a license in the larger Scandinavian market, both in terms of population and, of course, turnover. A fact that "magnetized" the best betting companies in the country.
source: newsit.gr
To date, the principle of "gambling" gambling as we usually mention in our discussions is unknown.
Our first references come from China back to 2.300 BC, however through historical sources it is easy to understand that each society had developed its own form of gambling in one way or another. From ancient Greece, to ancient Rome, and from there to Napoleon's France and Elizabeth's England, we know that the rich, at least in the first place, had fun through gambling that over the years took various forms to evolve into what we know today at online bookmakers (betting & casino). Today, more than ever, the need to regulate and establish an institutional framework governing gambling has become more urgent, and this debate, as we will see below, remains open in many European countries. Among them for betting Greece.
It is also very interesting to note how much the sports betting and casino space (especially online) has changed in the last 10 years, since France and Italy (the first countries) decided to proceed with the licensing of betting companies and casino. During these years and until today there are countries (Romania, Spain) that have managed to regulate their market and generate very significant revenues for both the state and the providers by increasing the total turnover. But there are also countries that try to make something more attractive for both the providers and the players themselves (Belgium, Italy).
Below we will see in detail what is valid in the largest European markets, while we will remember (starting from them) the institutional framework that exists today for both Greece and Cyprus.
Greece & Cyprus
In Greece, the debate over the licensing of online casinos and betting websites had started long before the law was passed in 2011. A law that is still in force today and allows 24 providers to legally offer their services in the country by paying taxes to the state. . These temporary permits at that time did not allow or rather prevented many big names in the field to express interest since the whole institutional framework and was absolutely not clear and had many gaps.
Of course, until 2013, when the government, with the creation of EEEP, created the first Blacklist by blocking access, they offered their services in Greece undisturbed. As everything shows, in 2021 we will have a new legal framework (already passed by the European Commission) that will replace the existing one, this time giving permanent permits.
The amounts will be € 3.000.000 for sports betting and € 2.000.000 for other games of chance. Other online games include casino gambling, poker and its variants, which are available online and are played either live or using a Random Number Generator (RNG).
An application for one or both types of license can be submitted by any interested party with the validity of each license being 7 years.
Many efforts have been made in Cyprus to regulate the framework in which online betting and casino game providers will be able to operate legally and safely. The truth is that after the events of 2013 there was a highly attractive climate for attracting foreign investment. A first attempt was made in 2017 with the corporate tax rate being 13% on gross profits, however the bureaucracy and the somewhat attempt to protect OPAP's monopoly discouraged the big names in the field from showing interest.
In May 2018, a new law was passed, in order for the Republic to comply with the European framework. The tax rose significantly to 22.5% of the company's gross profit for each accounting period, but this time the interest was greater and companies such as Parimatch and Fonbet now operate legally offering their services to Cypriot players.
United Kingdom
One of the most mature and well-organized gambling markets is undoubtedly that of the United Kingdom. After all, the English have a centuries-old tradition in gambling and especially in betting and horse racing.
The UKGC is the official licensing body in the UK and one of the strictest regulators on the planet. Many times we consider Great Britain as the "paradise" of gambling, but in 2018 there were frictions between the providers and the state. This is because for the first time then betting limits were set on slots and casino games, while specific offers from providers were banned because they were considered to encourage people to gamble and send the wrong message to young children.
Nevertheless, the UK market remains by far the most attractive not only because of the 15% corporate income tax, but also because it has the highest average per capita expenditure in all of Europe.
Germany
Problems and instability still characterize the German gambling market today, because some states such as Schleswig-Holstein in the north continue to operate autonomously. It is mainly through this state that many companies have found a way to provide services to German players.
Efforts have been made to regulate the market since 2000, but misunderstandings between the states have not allowed a single federal law to be enacted. Of course, the 5% tax rate is not small, but the fact that we are talking about the largest country in Europe in population and the strongest economy, has allowed many offshore providers to offer their services in Germany.
However, it seems that 2021 will be a year of change for Germany as well, as a new single bill is already ready which provides very strict conditions for both providers and players.
Suffice it to mention that there is a monthly bet limit up to the amount of 1000 € (for all), which can increase to 10.000 € for some of them and if they meet certain conditions!
Italy & Spain
2018 was a significant year of changes in the anachronistic regulatory framework that until then was in force in Italy. A law that provided for a 10% tax on the betting turnover. The changes were significant because a ceiling tax of 22% on the total turnover and not the profits of all online bookmakers was introduced, while an article was added that allowed games to be held, such as the slots that were explicitly banned until then. Of course, the good news did not last long as the new Salvini government banned by law the advertising of betting pages and casinos in the media and in groups. So online betting that cost millions in advertising was found with its back to the wall with many of them leaving the market.
In the case of Spain we do not have much to say since its model is highly successful with profits for state and providers steadily increasing year by year. The Spaniards built a framework from the start with a serious 25% turnover tax on both betting and casino and betting together. The law has been in force since 2012. So simple…
Rest of Europe
One of the most successful regulation models is that of Denmark, where since the beginning of 2010 and moving seriously, it has applied a 22% tax on GGR (gross profit). As a result, big names in the field secured licenses, thus satisfying the Danish players, but also the State. It should be noted here that with this development and the Danish monopoly, it was "forced" to evolve, to enter the internet and the truth is that it is doing well.
In Norway, on the other hand, there is a strange regime at least so far, where on the one hand we have the powerful state monopoly and on the other the "illegal" betting and casinos that offer their services without any problems but without "provoking" with advertising in TV or football teams. Probably (from what has been published lately) in Finland we will have developments in 2021.
An example to follow is certainly Romania, which in 2015 created a very competitive and attractive legal framework with a 16% tax on gross profits. At the same time, it set annual lump sums that are affordable, not only for the big names in the field, but also for new or smaller providers.
Finally in Sweden in 2019 we had the regulation of the market with an unlimited number of licenses for internet providers, with the terribly favorable tax regime of 18% on gross profits (GGR) which will be accompanied by a one-time amount each year depending on the games it will offer each provider and which in no case will exceed 70.000 euros. The result was literally an influx of online gambling providers to secure a license in the larger Scandinavian market, both in terms of population and, of course, turnover. A fact that "magnetized" the best betting companies in the country.
source: newsit.gr
