Honourable Members, Ladies and Gentlemen, May I, first of all, thank the European Parliament for organising this conference. Could I also commend the efforts of all the MEPs who have worked on this matter: Christel SCHALDEMOSE and Jürgen CREUTZMANN, authors of reports on this subject which have attracted a great deal of attention, and also – to mention just a few – Heide RÜHLE, Damien ABAD, Cornelis DE JONG and Ashley FOX. The resolution of 15 November 2011 demonstrated that, broadly speaking, Parliament shares the Commission's view. Parliament calls in the resolution for specific measures at European level, whilst respecting the principle of subsidiarity. The public consultation was a great success; we can be pleased that the debate was calm and dispassionate, and that today's discussion is focusing on analysing the facts and the issues rather than on emotional reactions. We have had the consultation and the ensuing discussion. Now is the time for action. I promised to do just that when I spoke at the European Parliament in Strasbourg. What can we, what must we do at European level? Help the Member States to effectively regulate online gaming, in line with their own national traditions but also in compliance with the Treaty. Why? To effectively protect consumers and all citizens, whilst responding to the legitimate expectations of online betting and gambling operators. It should be remembered that the latter are responding to a demand for these new services. Is there European added value in protecting our citizens, whilst respecting the principle of subsidiarity? Yes, because no Member State can deal alone with all the risks associated with this activity. However, this added value can take different forms: • more effectively clamping down on the many illegal websites, often hosted in offshore havens; • developing – where this is allowed – a legal alternative which is attractive enough to permanently undermine any clandestine and therefore unregulated offers; • it can – and must – also take the form of support measures to prevent any undesirable drift that could stem from an uncontrolled development of online betting and gambling. We need to tackle these challenges together. This is why I will be proposing to the Commission in the autumn that we adopt a plan of action to effectively regulate and supervise online betting and gambling. This plan should offer detailed responses to challenges identified ( I ) and a methodology for action ( II ).

1. EUROPEAN COMMISSION
Michel BARNIER
Member of the European Commission responsible for Internal Market and
Services
Online Betting and Gambling in Europe: from
Consultation to Action
European Parliament conference "How to Regulate Betting and Gambling
in Europe – Track record and future perspectives", Brussels
27 June 2012
SPEECH/12/502

2. Honourable Members, Ladies and Gentlemen,
May I, first of all, thank the European Parliament for organising this conference.
Could I also commend the efforts of all the MEPs who have worked on this matter:
Christel SCHALDEMOSE and Jürgen CREUTZMANN, authors of reports on this subject
which have attracted a great deal of attention, and also – to mention just a few – Heide
RÜHLE, Damien ABAD, Cornelis DE JONG and Ashley FOX.
The resolution of 15 November 2011 demonstrated that, broadly speaking, Parliament
shares the Commission's view. Parliament calls in the resolution for specific measures at
European level, whilst respecting the principle of subsidiarity.
The public consultation was a great success; we can be pleased that the debate was
calm and dispassionate, and that today's discussion is focusing on analysing the facts
and the issues rather than on emotional reactions.
We have had the consultation and the ensuing discussion. Now is the time for action.
I promised to do just that when I spoke at the European Parliament in Strasbourg.
What can we, what must we do at European level? Help the Member States to effectively
regulate online gaming, in line with their own national traditions but also in compliance
with the Treaty.
Why? To effectively protect consumers and all citizens, whilst responding to the
legitimate expectations of online betting and gambling operators. It should be
remembered that the latter are responding to a demand for these new services.
Is there European added value in protecting our citizens, whilst respecting the principle
of subsidiarity? Yes, because no Member State can deal alone with all the risks
associated with this activity.
However, this added value can take different forms:
• more effectively clamping down on the many illegal websites, often hosted in
offshore havens;
• developing – where this is allowed – a legal alternative which is attractive enough
to permanently undermine any clandestine and therefore unregulated offers;
• it can – and must – also take the form of support measures to prevent any
undesirable drift that could stem from an uncontrolled development of online
betting and gambling.
We need to tackle these challenges together. This is why I will be proposing to the
Commission in the autumn that we adopt a plan of action to effectively regulate and
supervise online betting and gambling.
This plan should offer detailed responses to challenges identified ( I ) and a methodology
for action ( II ).
I – Detailed responses:
It is still too soon to lay these out in detail, but I would like to mention three main
elements which should be included in any future action:
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3. 1. First element: protecting consumers and citizens
Almost 7 million Europeans gamble online. Our aim must be to provide protection for
these consumers, as indeed we must protect all citizens against potential risks.
Whatever their Member State of residence.
a) A first requirement in my view is to develop a set of basic guarantees
applicable throughout the whole Europe
The consultation has shown that all the Member States have taken measures to protect
consumers. But these measures can be very different.
I am convinced that, through persuasion and dialogue – between Member States but
also with the industry – we can develop a common European base of principles and
measures of protection. So that all citizens are protected, wherever they are and
whichever legal site they are connecting to.
b) The second : protecting minors
Children use the Internet every day. We have to find ways to stop them gaining access
to betting and gambling sites.
Technical solutions in the form of filters exist, but we have to ensure that the technology
develops in the right direction and, in particular, that the age verification tools remain
effective.
In addition to technology, the real key is to raise awareness of the risks, firstly among
parents but also by stepping up safety awareness education.
Finally, it is vital for the industry to shoulder its responsibilities.
c) The third: responsible advertising
We need clear rules in this area, in all the Member States. It should be obligatory to
provide certain information.
I am referring, of course, to a sign saying that access to the site is prohibited for minors,
which must be sufficiently visible. But it is also necessary to place warnings about the
financial, social and health risks associated with excessive betting or gambling.
We already have in Europe legislation to protect the interests of vulnerable consumers
whatever the product or service they buy, such as rules banning aggressive or
misleading commercial practices. We need to consider how best to supplement these
general rules with specific rules on online gambling.
d) A last requirement : preventing and curing addiction
So far, there have been insufficient studies to draw firm conclusions about the scale and
seriousness of the problem.
To make up for this lack of data, the Commission is consulting with several experts in
the context of the 'Alice Rap' project, with the aim of developing common definitions and
better evaluating the nature and scale of risks. But we have to go further, to develop an
anti-addiction policy which is effective because it is based on reality.
2. I now come to the second main element of our action:
preventing fraud
The consultation pointed to the need for greater clarity in the application of the Money-
Laundering Directive to betting and gambling and to the need to guarantee a level
playing field for all regulated operators in the EU (online or off-line).
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4. We will take this into account in our proposal for the fourth Money-Laundering Directive,
due in the autumn.
We also envisage a package of measures to better combat all other forms of fraud. For
example we must tackle the issue of identity theft, and guarantee the security of online
gambling equipment.
3. Third element: the integrity of sport
Protecting the integrity of competitions merits particular attention. The social values
which sport encapsulates are in jeopardy.
There is no other type of fraud where it is so evidently difficult for Member States to
tackle it alone. We therefore have to guarantee effective cooperation between the
national regulators, online gambling operators and sports federations to prevent match
fixing.
We also have to consider minimum rules on conflicts of interest, perhaps with a ban on
certain types of gambling or the creation of more rigorous control systems.
Androulla VASSILIOU spoke this morning about whether to define match fixing at
European level and to make it a criminal offence. I agree with her that this is an
interesting but difficult matter to implement.
We must continue to consider it, but the immediate priority is to create the basis for
European action to support the integrity of sport. Our plan of action will contribute to
this in a very real way.
The popularity of sport around the world and the international nature of online gambling
mean that any European action should be part of wider global initiatives.
That is why I attach great importance to the EU's active rule within the IOC and the
Council of Europe, which recently took a series of measures in a context surpassing that
of the EU alone.
Ladies and gentlemen,
Our Communication in the autumn will also establish a methodology for action, which I
want to be effective.
II – A methodology using all the tools available and taking into
account the wide range of situations.
How can we translate the objectives in our plan of action into reality on the ground? I
will mention three ways:
1. Firstly: involve the Member States and develop administrative
cooperation
I already said last November that our priority should be for the Member States to work
together in a spirit of mutual trust.
To this end, three informal regulators' meetings were organised, which were successful.
All understand the need for discussion, even if they still need to be persuaded of the
necessary degree of cooperation.
We will put forward the structures necessary for effective administrative cooperation in
our plan of action.
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5. I propose that a group of experts be created, comprising representatives of the Member
States, to contribute to the preparation and evaluation of European initiatives.
We must continue to develop a close and privileged relationship with the regulators. I
will meet with them once our plan of action has been adopted so as to discuss in more
detail the various aspects.
2. Secondly, encourage the development of an attractive range
of legal gambling opportunities where this is allowed
This is probably the only way to effectively dissuade consumers from going on the many
illegal sites which – let us not beat about the bush – will always be difficult to completely
suppress.
Aware of this reality, certain Member States have decided to partially liberalise the
online betting and gambling market.
In that case – and I would remind you that this is a decision for every Member State to
make – it is important for consumers to be able to distinguish between legal and illicit
sites.
Moreover, it is also important for legal operators to be able to offer sufficiently attractive
products for them to be a credible alternative to the illicit sites, otherwise consumers will
continue to turn to illicit and unregulated providers.
3. Finally, it's essential that the European rules be respected
The European Parliament has rightly called on the Commission to continue to investigate
situations of non-compliance with the Treaty or the case law of the Court of Justice,
which has provided valuable guidelines.
I will therefore ask my department to contact all the Member States concerned by
ongoing cases or complaints in order to remind them of the applicable rules and suggest
that any problematic situations are rectified in line with current case law.
If blatant infringements persist, I will not hesitate to propose to my colleagues that the
appropriate proceedings be taken or relaunched.
The development of a more proactive policy to support the Member States must be
matched by a firm determination on the part of the Commission to enforce common
rules once they have been clearly established.
Ladies and Gentlemen,
We will work with the European Parliament, all the Member States and all the
stakeholders to ensure the rapid application and effective monitoring of the European
rules we decide to lay down.
Please continue to share with me your comments and suggestions.
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