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European I-gaming Leaders Speak up at First Barcelona Conference
The inaugural European i-Gaming Congress & Expo succeeded in bringing the continent's online gaming fraternity together under one roof for the first time, providing a forum for lively and often-heated debate. Casino Review editor, Phil Martin summarises some of the more poignant discussion points.
‘Interest and potential in the European market have never been greater'. The catch line for this first attempt to unite the pioneers of Europe's internet gaming couldn't have carried more truth. Organised by ATE and The River City Group, over 275 delegates from 25 territories converged on the Hotel Rey Juan Carlos in Barcelona, Spain from October 15-16 to confront the issues facing i-gaming and wagering, and confront they did.
With the US stalling on regulation and seemingly intent on blind and potentially problematic prohibition, it is being left for European jurisdictions to fill the virtual void and steer the sector into highly regulated and better-controlled waters.
The positive stance recently taken by the British government concerning online gaming, as well as the licensing of top land-based gaming brands in Alderney and the Isle of Man, presents Europe as the prevailing region through which i-gaming can reach its full potential. Land-based operators from Croatia and Germany have also taken the internet plunge, emphasising the fact that European jurisdictions want to lead the way in transferring the traditional gaming experience online. It was also announced at the event that Malta was preparing itself to be an online jurisdiction and that a series of internet licenses would soon be up for grabs.
The main issues of the conference were undoubtedly prohibition, pan-European regulation and cross-border gambling. Peter Sehestedt, Ministry of Taxation of Denmark, risked the wrath of most of the delegates with his suggestions that a national approach to regulation was the only way that i-gaming could proceed, prompting much debate about free trade and harmonisation within Europe.
"Global i-gaming threatens the sovereignty of each individual state," Sehestedt suggested, adding that Denmark would never be able to regulate how it wanted to if globalisation remained. "We should have the ability to enforce our own regulation, otherwise we could be forced into a state of anarchy. The internet could prove a catalyst for collision in differing legislation," he added. "Self-regulation is a paradox and even the most admirable code of practice is flawed."
Peter Dean, chairman of the Gaming Board for Great Britain, defended the UK stance where the government has put itself forwarded as a keen advocate of strictly regulated online gaming. He said that the traditional safeguards for land-based gaming – of keeping out crime, protecting the vulnerable and ensuring that the customer knows what to expect – could all be applied to online. Although licences shouldn't be restricted to terrestrial operators, he said that the same parameters for probity should exist on the internet as they do for land-based operators.
For the vast majority, prohibition was a dark word which would only push i-gaming into the grey hands of the unscrupulous. Roger Withers, chairman of Arena Leisure and council member of iGGBA, summed up the feeling that the US was moving in completely the wrong direction, although he added: "Prohibition is creeping into the States. It was the best advertising campaign for alcohol and I wonder whether this will ultimately be the case with i-gaming?"
One of the biggest threats to i-gaming is undoubtedly the availability of trusted payment methods which are the life blood of the industry. Steve Donoughue, managing director of the Gambling Consultancy, led the charge saying the restrictions being put in place from US-based credit card companies had the potential to completely ruin a legitimate industry. "We can't rely on the US to sort this out," he said, "We need a European solution.
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