Time Of Reflection For European Governments

Technology_MarketsAs we reported here just a few days ago, the government in Holland has set up a committee to review it’s current legislation with regard to online gambling.

Holland is not the only European country that is currently taking another look at online gambling.

In the context of the European Union, there are essentially two main reasons as to why this is happening at this time.

Firstly, tax revenues are down everywhere in the developed world. The numbers across the whole system are down and ideas on how to generate more revenue have been in fairly short supply. One idea that has come up again and again is the regulation and taxation of online gambling.

Here is a sector that could withstand relatively heavy taxation and is not being utilized properly in most European countries.

The other reason that has made this a time of reflection in many EU states is the fact that most of them have some sort of state regulated lottery. Most of these types of lotteries form the basis of what amounts to state sponsored monopolies. While quite a lot of money generated from these types of ventures goes towards funding public projects, their very nature still means that most of them are in contravention of European competition law.

In the context of these two powerful drivers, we can expect to see a lot more legislative movement in this area in the coming months.