Things are getting a tad testy in Europe. Last week, we told you about the detention and questioning of bwin.party Co-CEO Norbert Teufelberger in Brussels by Belgian police. Officials wanted Teufelberger to answer questions about why his company was still taking bets in Belgium despite not being licensed. While he was not actually arrested, this perceived harassment has drawn the ire of online gaming executives in Europe.

The leaders of a dozen internet gaming firms issued a public statement on Sunday published by the Financial Times. In it, they scolded the European Commission for not making EU member nations stay in line with established EU law, saying, in part, “We hope that the Commission will now enforce compliance with the European treaty and do so swiftly… The time for polite rhetoric is now over. It is time for deeds, not words.”

In a nutshell, if an online gambling operator is licensed in one EU country, it is supposed to be able to offer its services in another EU country. Likewise, players are supposed to be allowed to play at any licensed poker room regardless of which EU country issued that license. Let’s take a look at some of the controversies around Europe, starting with Belgium.

Belgium

Belgium requires those who want to apply for an online poker license to have a brick-and-mortar presence in the country. Only six companies have received licenses so far, including PokerStars, which partnered with Circus Groupe to comply with the Belgium Gaming Commission’s regulations. The BGC has also created a “black list” of sites that includes some of bwin.party’s domains.

The incident with Teufelberger further angered the online gaming firms, which have been fighting Belgium’s regulations ever since they were first being developed. In the letter to the Financial Times, the gaming executives quoted EC Commissioner Michel Barnier as saying in 2010, “If blatant infringements persist, I will not hesitate to propose to my colleagues that the appropriate proceedings be taken or re-launched.”

Words are just words, though, the executives say, and it’s about time action is taken to back them up. Discuss this in our new Belgium poker community.

Spain

Last week, a Barcelona court ruled in favor of PokerStars, saying that the online poker giant has been operating legally in Spain for over a decade. PokerStars' competitor, Codere, based in Spain, filed lawsuits against Stars and other gaming firms claiming that those companies had been operating illegally in the country before the industry was regulated and before licenses were issued in June of this year.

The court agreed with PokerStars’ position that because there was no regulation prior to June 2012, PokerStars was free to operate in Spain since there was no specific law against it.

The only case Codere has won was against SportingBet’s Miapuesta brand in March, but after paying back taxes, the site received a license and returned to the Spanish market in June. Discuss this in our new Spain poker community.

Greece

Greece’s Hellenic Gaming Commission has warned all online gaming firms currently operating in the country without a license that they must withdraw by December 6 or risk punishment, which could include imprisonment of executives. Banks will also be made responsible for blocking transactions to and from blacklisted sites.

Although national regulations were enacted in August 2011, there has still been no process put in place for operators to receive licenses. Two-dozen companies received temporary licenses, but they were required to pay two years’ worth of back taxes for the time they operated in Greece prior to regulation. Several companies balked at this condition and refused to play ball.

A year ago, the Remote Gambling Association and European Gaming and Betting Association filed a complaint with the EC claiming that Greece’s regulations, particularly the retroactive tax requirement, ran afoul of EU law.

Even worse is the tax exemption given to Greek Organization of Football Prognostics, better known as OPAP. OPAP, formed over 50 years ago as a state-run organization, is now publicly traded on the Athens Stock Exchange. While the Greek government does not wholly own it anymore, the State still controls 34.4% of the company.

OPAP was the target of criticism in July when Greece’s island nation neighbor Cyprus outlawed many forms of gambling such as poker, casino table games, and sports exchange betting. This was viewed as a way to give OPAP a de facto monopoly in Cyprus, as through an agreement between Greece and Cyprus, OPAP was allowed to offer brick-and-mortar gambling in Cyprus tax-free.

Not coincidentally, OPAP’s offerings are sports betting and online lotteries, two forms of gambling that were not banned. Discuss this in our new Greece poker community.

Germany

In December, most of the German states, or “Länder,” ratified the new State Treaty on Online Gaming, adopted in July. The remaining two states are reportedly signing it this month. The Treaty bans all online poker and casino gambling, but permits licensed online sports betting. Aside from the obvious problem of most forms of gambling being deemed illegal, the Treaty also imposes a 5% tax on every wager, something that has caused firms such as Betfair to pull out of Germany.

EGBA has submitted a formal complaint to the EU claiming, once again, that Germany’s restrictions are against EU law. The status of gaming in the immediate future in Germany is unclear. In the meantime, most gaming firms continue to offer poker to German residents, as they believe the Treaty does not conform to EU law.

The state of Schleswig-Holstein adopted its own gaming regulations last year, which allowed for online poker and casino licensing. After a change in government, there was some thought to canceling those licenses, but that never happened. Current license applications are still good for their full six years and Schleswig-Holstein will continue to accept applications until the new treaty regulations go into effect.

Discuss this in our new Germany poker community.

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