The Future of Lotteries: Combating Illegal Operators and Ensuring Consumer Protection
This comprehensive overview by Friedrich Stickler, President of The European Lotteries, discusses the evolving global lottery market, focusing on the contrasts between state-run lotteries and private operators. It highlights the burgeoning challenge posed by illegal gambling platforms, detailing the economic implications for authorized providers and the vital consumer protection measures needed. With annual revenues of €12 billion from unlicensed operators, the call for a unified regulatory framework becomes critical. Strategic alliances and robust regulations are essential for the sustainability and integrity of lotteries.
The Future of Lotteries: Combating Illegal Operators and Ensuring Consumer Protection
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Presentation Transcript
The final countdown Friedrich Stickler, President, The European Lotteries
Overview The global market Two different models: statelotteries vs. private operators The fightagainst illegal operators
Monthlydepositlimits 2/3 of commercial operators allow deposits over €1m
Defendingthe classic lotterymodel Fight against illegal operators Consumer protection Money forsociety (fiscalargumentsandgoodcauses)
Threats • Offshore operators without license offer a wide range of products: • Lottery, Casino, Poker, Sportsbetting • No limits for wagers and age • Higher payout percentage • No taxes • Offshore operators acquire customers without licence
Growingcompetitivedisadvantageforauthorisedproviders authorisedprovider comercialoperator
Fight against illegal operators 15.000 existingwebsitesAnnual revenues exceeding €12 billion in 2013 12.500 without a license = unauthorised illegal 500 licensedoperators in Malta 5 times more operators without a license than licensed operators Source: greenpaper on online gambling, europeancommission 2011
Fight against illegal operators • Combinedmeasures – UIGEA asrolemodel: • Strong legal frameworkandseveresanctions • IP/DNS blockingtogetherwithpaymentblocking • Banning illegal advertising • Setting upblacklists (whitelists) • Public informationabout illegal gamblingandoperators • Coordinationbetween national authorities
Fiscalarguments Comercial online operators European Lotteries averagetaxtotal revenues 0,5% – 1% 25% 65% 20% (offshore 1%-2%) averagetaxfrom GGR
Online Regulation in Europe Somestateswithoutregulation Subsidiarityprinciple: states hold primarycompetencetoregulategambling No mutual recognition Responsibilityforconsumerprotection lies withthememberstate Internal consistencyof a Member States gamblingpolicyis a national duty
Online Regulation Systems • Monopolies • State monopolies – Germany, Portugal • Private monopoly (concessions) – Austria, Great Britain • Liberalizedmarketswithlicences • limitatedorunlimitednumberoflicences • Free licenseSystems • e.g. Malta (forinternational marketexcept Malta) • Prohibition
Common aim !! Guarantee a sustainablefutureforlotteries !!
Howtoforge a united front Enter partnerships and strategic alliances with stakeholders The role of politics Communication and lobbying