News | Sunday, 15 March 2009

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Malta’s MEPs abstain on gambling resolution

Matthew Vella
Malta will keep making its own rules and favourable tax regime for betting companies, as MEPs have rejected moves towards a single European market for online gambling.
But MEPs Simon Busuttil and Louis Grech abstained from voting on a non-binding resolution on the integrity of online gambling adopted by 544 MEPs voting in favour, 36 against and 66 abstentions.
In principle, the resolution means member states will also retain the right to control as they wish the exposure of consumers to online gambling, and protect them against addiction, fraud, money-laundering and fixed games.
MEPs rejected an alternative minority opinion report by 570 against, drafted by MEPs arguing that gambling is an economic activity to which internal market rules on freedom to provide services should apply.
While Nationalist MEP Simon Busuttil and Labour MEP Louis Grech abstained from voting for the resolution, Busuttil said he voted in favour of the alternative motion.
He told the European Parliament: “There is no doubt that integrity in the online gaming sector is very important. It is important that we ensure we fight any criminal activity that can touch upon this sector.
“But this does not mean we have to turn to protectionism. We must remember that the free provision of services in the EU is on its foundational principles, a recognised principle.”
The final resolution underlined that member states have the right to regulate their culture-specific gambling structures, which finance sports and other social activities.
Online gambling yielded around €2 billion in gross gaming revenues in Europe in 2004, accounting for roughly 5% of the total gambling market in the EU.
Malta’s favourable tax regime has attracted dozens of gaming companies to its shores, yielding some €40 million in gaming taxes in 2008.
Malta was the first EU member state to regulate online gaming back in 2004.
In the resolution approved by the European Parliament, MEPs stressed that online gambling operators must comply with the gambling legislation of the member state in which they provide their services and in which the consumer resides.
MEPs also noted that bets taken by private operators are a form of commercial exploitation of sports events. They recommended that governments protect sporting competitions from any unauthorised commercial use and take steps to ensure fair financial returns to the benefit of all levels of professional and amateur sport.
The French national lottery’s chief executive, Christophe Blanchard-Dignac, was critical of the vote, reflecting French mistrust of states like Malta and Gibraltar whose tax regimes attract betting companies to their shores.
“We [state licensed operators] are shattered that operators based in tax havens don’t have to pay any taxes. They only give money to big football clubs and not to good causes of general interest,” Blanchard-Dignac said.
The French government has presented a draft bill for a “controlled opening” of the gambling market for the most popular games – sports betting and poker – in France. This opening would exclude games considered dangerous, like online casinos. Anyone willing to become a legal operator is able to get a licence for a very low price, provided that they commit to respecting strict regulation regarding taxation, money laundering and anti-addiction precautions.

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