It is no secret that the European Union finds the online gambling industry to be problematic . But the problems actually don’t lie with the industry, it is in the way EU countries just do their own thing with regards to trading regulations. The EU is committed to a policy of free trade within the Union, but there are all kinds of issues that come into play, so individual countries tend to make their own laws regarding the industry.

One of the chief concerns of many EU partner countries is the problem of match fixing. So, they attempt to put an end to corruption in sports by stopping activities such as online sports betting, and it is this that affects industry players. While the European Union themselves battle with the case of creating a unified, or rather, common, platform for operators in the Internet gambling biz.
The real problem seems to be that the gambling sector is vulnerable, so protection, as well as stamping out corruption is the EU’s main points of focus.

There has also been a great deal of deliberation surrounding inconsistencies in the rules that apply to online gambling ops within EU member nations. We have seen evidence of this in Belgium, Germany, France, and other member states. These states seem determined not to come to the party in terms of this industry.

Their actions have been seen in the light of a monopolistic approach, and this

goes against the basic mandate of the European Union – that fairness and free e-commerce is an integral part of the structure.

The European Commission has requested industry input, and responded with an action plan, however, this has made very little difference to the way in which certain countries respond. Despite the fact that Michel Barnier – the EC Commissioner for internal trade has called for member states to fulfil their obligations, they simply go their own way.

Apparently there are five areas in which increased cooperation is required, but Mr. Barnier has also mentioned that the EC is “not proposing EU-wide legislation on online gaming”. However, they are still proposing that a common protection principle be adhered to, as well as requesting that all member states follow an across-the-board set of actions.

It is obvious that both the EU and member states have concerns such as underage gambling, cheating in sports, and money laundering, but these issues should not be used as an excuse for monopolistic gambling practices to take place. Age verification technology and other tools to protect the vulnerable have become highly sophisticated – operators in regulated jurisdictions are visibly making use of these. However the new EC action plan wants advertisers to be more responsible too.

One of the reasons we say that the online gambling industry is a "mainstream" industry, is because of the size of the prize on the bottom line for operators. It is hardly surprising that the UK Government is re-visiting its taxation laws for this industry – during 2012 online gambling was worth more than £2 Billion; it is envisaged that this will grow monumentally. Her Majesty’s Customs and Excise hardly receives a share in this loot, as taxation mores are so tough that most UK operators provide these services to the UK-audience from White Listed, yet distant shores.

£2 Billion is a massive amount of money in an industry which grows, hour-by-hour, day-by-day, year-on-year. Now with mobile gambling being the new zeitgeist, Internet gaming is predicted to grow even more. Some remarkable growth percentages have been seen in this sector of the industry, especially during 2012, as more people get hooked up with a smartphone.

The leading gaming growth sector in the UK is currently real money sports-betting, and especially popular are the “in-play” wagers that can now be made from the convenience of a mobile phone. Just as an example – in the period 2011 to 2012, football betting has seen an increase of 69%. This makes it the second-most lucrative gaming market in the country, just a wee bit behind horse racing.

A recent study which revealed these result, also yielded other rather interesting results too. For example we now know that William Hill is in the lead in terms of market-share, but this does not necessarily mean they have the lions-share of the entire industry. 15% goes to William Hill, while Paddy Power, Betfair, Ladbrokes, and Bet365 each control the same at 11% each. 44% of the market is attributed to "other" operators.

Research is indicating that 29% of users who gamble online are using mobile devices, and smartphones to facilitate this form of entertainment. Searches for online gambling products from smartphones have also grown by 75%. This proves that the spirit of the times is for mobile gambling, and sport-betting is mostly what these users are looking for.

The Island of Jersey has now entered the race to become a licensee state. They are joining into the melee with territories such as the Isle of Man, Gibraltar, Malta, Alderney, and one or two other well-liked destinations. With so much attractive competition, the UK Government has a hard task ahead of them if they think they might be able to attract operators back to the fair shores of Pudding Island.

While Northern Ireland is considered to be part of the United Kingdom, this area is a self-governing territory, which implements its own distinct laws. Heaven knows the IRA fought long and hard enough to gain this distinction.

In terms of online gambling legislation and regulation, there was once the idea that an independent licensing authority should be created. However, the idea was soon rejected, due to logistical difficulties. Now Nelson McCausand – Minister of Social Development – Northern Ireland, has announced that new gambling legislation is to be formulated shortly. Apparently the new laws are not expected to affect online gamblers in any drastic way.

The need for new laws has become essential, because as times have changes, the old laws cannot hope to cover all the facets of every gambling portfolio, that is available to the public today. Basically these new laws are for consumer protection, and are focussed at players, and the money they spend being protected.

The EU marketplace as a whole has seen online gambling, as well as games such as poker, surge in popularity. In particular in terms of the game of poker, live events have become just as popular as playing online. Therefore the new Northern Irish laws will be designed to comply with the provisions of the EU, and unlike various EU countries, which have been recently seen taking the law into their own hands, the Northern Irish have no desire to take the EU Commission head on.

The other crucial aspect according to Minister McCausand, is that the original Betting, Gaming, Lotteries and Amusements laws were promulgate in 1985, and only dealt with the activities of bingo clubs, gaming machines, and so on. The times, they are a changing, and therefore so too must the laws. Gambling is so much more than mere bingo today, and is available across a wide variety of channels.

He is also keen that their laws should fit with the laws of the EU, and has in fact made it clear that they wish to have strict adherence with EU provisions.

There is also the matter of the Problem Gambling Review, when in 2009, problem gambling numbers were… well… a problem. At the time the review was conducted it revealed that at least 2% of the Northern Irish population, were actually gamblers with problems. This was a highly damaging review, and at the time, although poker was not mentioned per se, online poker operators had something to say. Operators such as Betfair, Paddy Power and Ladbrokes, are highly reputed brands in this industry, and obviously had something strong to say regarding the results of this review.

However, new laws will increase player protection, as well as address specific loopholes that seem to be present in the current gambling system. As EU law is not anti-online gambling, we don’t see any difficulty with new Northern Ireland law. They have absolutely committed themselves to strictly comply with the EU. Regulations and standards in the UK are being extensively studied to ensure a similar model for this independently governed territory.

iGB Affiliate Events, organisers of the London Affiliate Conference 2013 (LAC) at Old Billingsgate 7th – 10th February, have announced that the iGaming Series of Poker will return to their flagship event. The iGSOP has a new sponsor, 888 Poker, who will be hosting the online freerolls on their website, leading up to the live event at LAC.

888 poker are excited to be sponsoring this year’s iGSOP and are looking forward to seeing both old and new affiliate faces at their poker tables during LAC.

888 poker is the fastest growing online poker brand in the industry, hosting thousands of poker enthusiasts the world over at any given time. With over 10 million registered members, 888poker continues to offer the best consumer experience. 888poker strives to provide quality entertainment by providing a safe, fun and secure poker environment. Customers play on state-of-the-art software with 3D, PokerCam and Teams features.

In addition, the online freerolls for the iGaming Series of Poker (iGSOP) will now be streamlined, thanks to Global Gaming Events (GGE), the platinum media partners to the event, who have lent their industry know-how and proficiency to the tournament. GGE, as an organisation, offer players the chance to win thousands in prizes, working with different poker rooms to ensure players receive the best possible experience and maximum chance of prizes. In turn Partners of GGE (such as affiliates) can promote these prizes to their poker players and still earn affiliate commission from them. LAC delegates can register to play on London Affiliate Conference.

"We have worked with over 1000 affiliates to earn them over $2.4 million in affiliate commission." Explains Jason Rosenberg, president of GGE. "In turn we will be bringing our expertise and connections within the Poker industry to the iGaming Series of Poker, ensuring the affiliate experience with the tournament are as enjoyable and smooth as possible. This is a fantastic opportunity for affiliates to see what GGE can offer them: a high conversion tool and a win-win situation for all."

The iGaming Series of Poker is a tournament traditionally played at each of the international iGB Affiliate events, with only delegates attending allowed to play on the online freerolls to win seats for the live event. The iGSOP is free to enter and the next tournament will be held at the London Affiliate Conference 2013. The top seven spots will win cash prizes. More information on the iGSOP and LAC can be found on London Affiliate Conference.

We have been reading in the news that the large online gambling concerns, which offer offshore services to UK residents, may be in for beneficial tax-cut to lure these industry players back into the country. While we think this is a very fine idea, whether it ever comes to fruition or not, still remains to be seen.

Recently there have been massive protests against the fact that industry giants such as Amazon, Google and Starbucks have been involved in corporation tax avoidance. Apparently the government has also been aware of this and has failed to crack down on defaulters. In the meantime, an across the board tax of 15% applies to all gambling concerns, and this has seen an exodus of big brand names such as Ladbrokes, William Hill and other interactive divisions of brands, taking to the hills to license their products offshore.

While this has provided big business for Gibraltar, Isle of Man, Alderney, Malta and other independent members of the ex-British Empire. It does not do a lot for Her Majesty’s Customs and Excise coffers. Not when we bear in mind that the majority of the customers who follow these big name brands are actually situated in the UK.

Luring interactive gambling industry giants, and even the smaller concerns, does not only mean licensing fees will be filling up UK tax coffers. The industry is a mostly high-tech concern, and therefore highly paid people are employed in jobs, office space is required for hardware, software designers, financial, administrative, and all kinds of other highly paid people, and all of these people pay tax. An active industry also stimulates the economy too.

As an example perhaps we should look at Tombola Bingo. This is one of the very few interactive online bingo concerns that keepsoffices in the UK. Although they too are licensed in Gibraltar, they have offices based, and employ people in the Sutherland area. Despite the strict tax regime, which is even tougher for the bingo business in Britain, this business has continued to grow, and has on more than one occasion actually doubled in size.

With attractive tax cuts scheduled – which seems to be what Chancellor George Brown is planning, Britain’s biggest gambling companies could move back to the land of their birth. Despite the fact that this is a highly controversial move, if we think about it in pure numbers terms. It is far more economically beneficial to have twenty online gambling companies paying licensing fees, salaries, overheads etc, as well as 5% or 10% tax. Than it is to have NO online gambling companies paying any of the above expenses we listed.

Bearing in mind that there are hundreds – if not thousands – of online gambling concerns offering services to the residents of the UK; the more attractive the government makes it for them, the better it is for everyone in the long term.

According to The Mail on Sunday – "the Treasury is considering slashing the gambling levy by a third to recoup some of the £2.1 billion in revenues that has been lost over the last seven years."