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HOW TO REGULATE GAMBLING AND BETTING IN EUROPE? TRACK RECORD AND FUTURE PERSPECTIVES

Summary of the debates

Symposium co-chaired by

Damien ABAD MEP, shadow rapporteur for the EP resolution on “Online gambling in the Internal Market”

Jürgen CREUTZMANN MEP, rapporteur for the EP resolution on “Online gambling in the Internal Market”

Brussels – European Parliament Wednesday 27 June 2012 @

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SUMMARY

WELCOME • Damien ABAD, MEP, Shadow Rapporteur for the EP Resolution on "Online Gambling in the Internal Market" ...... 10

OPENING SESSION OF THE CONFERENCE • Androulla VASSILIOU, Member of the European Commission for Education, Culture, Multilingualism and Youth ...... 11

WHAT NEW EU ACTION PLAN? ...... 14 Chairperson's Introduction • Jürgen CREUTZMANN, MEP, Rapporteur for the EP resolution on "On Online Gambling in the Internal Market" ...... 15 Introductory Speech • Claire BURY, Director for Service, Directorate General Internal Market and Services of the European Commission ...... 17

PROTECTING EUROPEAN CONSUMERS ...... 26 Chairperson's Introduction • Jürgen CREUTZMANN, MEP, Rapporteur for the EP resolution on "On Online Gambling in the Internal Market" ...... 27 Introductory Speech • Gerhard MEYER, Certified Forensic Psychologist at the Institute of Psychology and Cognition Research, University of Bremen, Germany ...... 28

THE SPECIFIC CASE OF SPORTS BETTING ...... 38 Chairperson's Introduction • Damien ABAD, MEP, Shadow reporter for the EP resolution on "Online Gambling in the Internal Market" ...... 39 Introductory Speech • Michaela RAGG, Director, Interpol Integrity in Sports Programme ...... 40

FROM CONSULTATION TO ACTION • Michel BARNIER, Member of the European Commission for Internal Market and Services ...... 49

CLOSING REMARKS • Andreas MAVROYIANNIS, Deputy Minister for European Affairs of Cyprus 55

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Damien ABAD

A graduate of Sciences Po Paris, he started work as a trainee in budgetary and fiscal affairs at the UDF in March 2006, later moving to the New Centre in the National Assembly. A founding member of the Young Centrists movement, he was elected their president in May 2008 at the New Centre's founding congress in Nimes. He became deputy secretary-general of the New Centre in 2010. In June 2009, he was elected to the European Parliament for South East France, on the list of the presidential majority, becoming - at the age of 29 - the youngest French parliamentarian in office and one of the youngest MEPs. As an MEP he regularly takes part in debates on economic questions, with a particular focus on industrial policy, social services and consumer protection. The founding chairman of the European Parliament Intergroup on Youth, his work as an MEP sees him belonging to two legislative committees: the Committee on International Trade and the Committee on the Internal Market and Consumer Protection. He was the EPP's shadow rapporteur for the European Parliament's 2011 report on online gambling in the Internal Market. He was elected to the National Assembly in France June 17, 2012.

Michel BARNIER

Michel BARNIER is a graduate of the Paris ESC business school. Deputy and then senator (1978- 1999) for the département of Savoie, he chaired its General Council for seventeen years. He held a number of cabinet positions, being successively Minister of the Environment (1993- 1995), Minister for European Affairs (1995-1997) and Minister of Foreign Affairs (2004-2005). In September 1999, he became European Commissioner with responsibility for regional policy and structural funds, but also for reforming the European institutions. From 2005 until his appointment to his current position, he acted as special advisor to the president of the European Commission, presenting the report "For a European Civil Protection Force:Europe Aid" on 9 May 2006. In February 2006, he was appointed vice-president of Mérieux Alliance in charge of international development. In March 2006 he became Vice-President of the European People's party (EPP) and In June 2007 he was appointed Minister of Agriculture and Fisheries. In the June 2009 European elections he led the national campaign of the presidential majority. Elected as an MEP, he became leader of the French EPP delegation in the European Parliament. In February 2010 he was appointed European Commissioner for Internal Market and Services.

Michael BAY JØRSEL

Michael BAY JØRSEL has worked with addiction problems since 1978 - initially with alcohol addiction and since 1992 with compulsive gambling. He is today head of the Danish Centre for Gambling Addiction (Center for Ludomania). With facilities in Denmark's three major cities - Copenhagen, Odense and Aarhus - the center is the oldest and largest of its kind in Scandinavia. He also plays an active role in providing information about addiction and is founder together with colleagues in Sweden and Norway of SNSUS (The Nordic Association for Study and Information about gambling). He has collaborated with a number of research partners, set focus on the importance of prevention, and contributed to the general knowledge about addiction through documentaries, articles, lectures, and the first book to be published in Danish about the problems of compulsive gambling.

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Christophe BLANCHARD-DIGNAC

Christophe BLANCHARD-DIGNAC became CEO of Française des Jeux on 16 October 2000 and the 1st Vice-President of European Lotteries. A graduate of the Bordeaux Institute of Political Studies and with a degree in Public Law, this former student of the Ecole Nationale d'Administration joined the Ministry of Economy and Finance budget department in 1979. Between 1983 and 1985 he worked for the Caisse Nationale du Crédit Agricole, before taking up the post of budget advisor to the then Minister of Economics, Finance and Privatisation, Edouard Balladur, in 1986. Between 1988 and 1994, he worked first as Assistant Director then as Deputy Director at the Budget Department, in charge of economic interventions and relations with the public sector. From 1994 to 1995 he worked at La Poste as Deputy Director- General, CFO and advisor to the company president, before returning to the Ministry of Economy and Finance as its Budget Director. During this period he was also a board member of several large public companies. He was a member of the Economic, Social and Environmental Council (ESEC) from 2004 to 2010, becoming an Honorary Member in 2011. He is also a member of the Board of Directors of the National Centre for the Development of Sport (CNDS).

Claire BURY

Claire BURY is currently Director of Services in Directorate General Internal Market and Services. She was previously Head of Unit for Company Law, Corporate Governance and Financial Crime in Directorate General Internal Market and Services and Deputy Head of Cabinet to Internal Market Commissioners Charlie McCreevy and Frits Bolkestein. An English barrister by training, she worked in the Commission's Legal Service and, before coming to Brussels, in the UK Foreign and Commonwealth Office.

Jürgen CREUTZMANN

Jürgen CREUTZMANN studied Business Administration at the University of Mannheim. After working for an audit firm, he began his career at the chemical company BASF in 1973 where he was employed until 2006. Between 1973 and 1988, he was responsible for the consolidated financial statement of the BASF SE Group. As Director Subsidiaries Accounting Services, he was responsible for the accountancy of 50 subsidiaries and holdings of BASF from 1988 until 2006. In 1965, he became member of the Jungdemokraten, then the FDP's youth organisation, and was elected member of the executive board of their regional group in Rhineland-Palatinate. He became member of the executive board of the FDP Rhineland-Palatinate in 1983 and has been its treasurer since then. In 1998, he became member of the Landtag of Rhineland- Palatinate. Between 2001 and 2006, he was vice president of the Landtag and subsequently chairman of its committee for European affairs. In 2009, he was elected member of the European Parliament and accordingly resigned his seat in the Landtag. He is treasurer and member of the executive board of the FDP's delegation in the European Parliament, which belongs to the Alliance of Liberals and Democrats for Europe (ALDE). He is full member of the, Committee on Industry, Research and Energy and substitute member of the, Committee on Internal Market and Consumer Protection. He was rapporteur for the Parliament's resolution on online gambling in the internal market, which was adopted in November 2011. Furthermore, he is vice chairman of the SME Intergroup, a working group open to all members of parliament which is concerned with the promotion of the interests of small and medium enterprises (SMEs). He is also the coordinator of the ALDE campaign to boost SMEs in the single market, which was launched in February 2012. 4 @

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Philippe FONTAINE

After graduating from the Université Libre de Bruxelles in 1986 with a degree in engineering, Philippe FONTAINE started his career as an IT consultant and project manager at the European Space Agency. In 1993 he moved to an IT service company specialised in content management where he held a number of different positions in operations, sales and management. In 1999 the company was taken over by Software AG, an international company for IT products and services. Here he enjoyed an international career in many positions, ending up heading the services department in the Benelux and the Nordics. In 2011, together with his management colleagues, he set up Acsone via a management buy-out. Ascone specialises in the design and implementation of open, flexible and high-performance IT solutions helping customers to face up to the deep-going changes now on the horizon.

Philippe GERMOND

A graduate of the École Centrale Paris and holder of a Master's degree from Stanford University, engineer Philippe Germond began his career in 1980 at HEWLETT-PACKARD in the United States. In 1982, he moved to HEWLETT-PACKARD France, becoming a member of its Management Board in 1990 and then managing director for South Europe in 1993. In 1995 he was appointed managing director of SFR and in 1997 CEO of SFR GROUPE CEGETEL. In 2000 he became CEO of ALCATEL, before moving to the ATOS ORIGIN Management Board in 2006, of which he was president from October 2007 until November 2008.

Pâquerette GIRARD-ZAPPELLI

A French magistrate since 1981, Pâquerette GIRARD-ZAPPELLI, former conseiller référendaire to the Court of Cassation from 1992 to 2002, spent a long time working for the Ministry of Justice's Nationality Bureau where she was in charge of public and legislative policy and participated in international negotiations between 1984 and 1992. In September 2002 she became secretary of the IOC's Ethics Commission, a management position within the International Olympic Committee.

Ron GOUDSMIT

Ron GOUDSMIT was one of the founders of the ECA in 2005 and was elected as Chairman in 2006. He has been involved in the casino industry since 36 years. Started as a dealer in 1976, he has since held various senior executive positions within Holland Casino. Appointed as Vice President International in 1997 he has been responsible for all international business of Holland Casino. Since end of September 2008, he is both the Secretary of the Executive Board and the Supervisory Board at Holland Casino, the Netherlands.

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Annette KOK

Annette KOK, President of the VAN Speelautomaten Branche-Organisatie (Dutch Gaming Machine Organisation), was first elected as EUROMAT President in May 2008 and re-elected again for a second term in 2011. She holds a Master's Degree in Law from the Erasmus University (Rotterdam, Netherlands) and an Executive MBA from the Nyenrode Business University (Breukelen, Netherlands). Having held several positions in the VAN Dutch Gaming Machine Organization and JVH games, she has more than 20 years of experience in the gaming and amusement sector.

Sigrid LIGNÉ

Sigrid LIGNÉ joined the European Gaming and Betting Association in March 2007 as Secretary General and spokesperson. She started her career working for the Legal Service of the Council of the EU and the European Commission. She then moved to consultancy. Over the last fifteen years she has been responsible for several Brussels-based and pan-European lobbying and communications campaigns, working for a wide range of corporations and trade associations. The European Gaming and Betting Association (EGBA) is the industry body representing the leading online gaming and betting operators established, licensed and regulated within the EU. EGBA promotes the implementation of fair and competitive regulations for online gambling operators throughout Europe in line with EU law.

Etienne MARIQUE

Etienne MARIQUE holds a degree in law and fiscal science from the Université Libre de Bruxelles. He began his career as a lawyer in 1974. From 1990 to 1996 he worked as examining magistrate in Brussels. In 1996 he became advisor to the Brussels Court of Appeal, conducting as such numerous missions within the judicial system. From 1996 to 1998, he held the office of President of the Brussels Assize Court. On 16 December 1999, he was appointed chairman of the Gambling Commission. Even now he still keeps close track of what is happening there. He has published many articles on public policy on gambling, some of the latest being: "Les mesures de protection du joueur" (Measures for protecting gamblers) in Les jeux de hasard en Belgique (Gambling in Belgium), Larcier, 2009, and "Politique publique des jeux de hasard en Belgique" (public policy on gambling in Belgium), in Jeux de hasard et d'argent, Contextes et addictions, Expertise collective (Gambling - contexts and addiction), Inserm, 2008.

Andreas MAVROYIANNIS

Andreas MAVROYIANNIS assumed his duties as Deputy Minister to the President of the Republic of Cyprus for European Affairs in October 2011. His portfolio includes the preparation of the Cyprus Presidency of the Council of the EU, representing the Government to EU Institutions as well as the Presidency and the Council before the European Parliament and managing the next Multiannual Financial Framework negotiations. He joined the Diplomatic Service of the Ministry of Foreign Affairs of the Republic of Cyprus in 1987. Previously, he has served as Permanent Representative of Cyprus to the European Union (2008-2011), as Permanent Representative of Cyprus to the United Nations (2003-2008), as Ambassador to France (1999-2002) and as Ambassador to Ireland (1997-1999). During his tenure as Permanent Representative to the UN, he was one of the Vice-Presidents of the 62nd Session of the General Assembly of the United Nations (2007-2008). He has also been a Member of the Greek-Cypriot negotiating team in the Cyprus question bi-communal talks (2003-2008) and a Director of the Office of the Minister of Foreign Affairs (1995-1997, 2002-2003).

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Gerhard MEYER

Gerhard MEYER has studied Psychology and received his PhD in 1982. At the moment, he is a Professor of Psychology at the Institute of Psychology and Cognition Research, University of Bremen. He was involved in several research projects on problem gambling, e.g. problem gambling and delinquency, neuroendocrine response to casino gambling, self-exclusion, development of an assessment tool to evaluate the risk potential of different gambling types, and served as a consultant for regulators in Germany, Switzerland, and the European Union. He also works as a trainer for casino employees on early detection of problem gamblers and responsible gaming programmes. Last but not least, he acts as forensic expert witness in court cases and is author of books (e.g. Problem Gambling in Europe - Challenges, Prevention, and Interventions. Springer, New York, 2009; Gambling Addiction - Etiology, Treatment, and Prevention. Springer Medicine Publisher, Heidelberg, 2011, in German), numerous articles and presentations on gambling-related topics.

Michaela RAGG

Since September 2011 Michaela RAGG has been the Assistant Director of INTERPOL's Integrity in Sport Unit. She began her career with the German Federal Criminal Police (Bundeskriminalamt / Interpol Wiesbaden) in 1987 as a Specialized Officer, before advancing as Liaison Officer for all law enforcement matters between France and Germany from 1995 to 1999. Seconded to the General Secretariat of INTERPOL in 2001, she acted as Specialized Officer to build up the Fugitive Investigative Support Unit prior to her appointment as Assistant Director at the Office of the Special Representative of Interpol to the United Nations from 2004 to 2008.

Friedrich STICKLER

Friedrich STICKLER is Member of the Board of Austrian Lotteries since 1986. In June 2009 he was elected President of European Lotteries (EL - the umbrella organisation of national lotteries) and re-elected in June 2011. During his more than six years period as President of the Austrian Football Association, in cooperation with Switzerland, was awarded the organisation of UEFA EURO 2008. As EL President he is in the forefront to defend the integrity of sport. The European Lotteries is the European umbrella organisation of national lotteries operating games of chance for the public benefit in 44 European countries - including all 27 EU Member States - and is by far the largest representative European umbrella organisation in the field of gambling.

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Henrik TJÄRNSTRÖM

Henrik TJÄRNSTRÖM (Sweden, 1970), is CEO of Unibet Group plc and holds a degree in Industrial Engineering and Management from the Institute of Technology, Linköping University (Sweden). Before becoming CEO of Unibet in July 2010, Henrik was Group CFO (2008-2010) and member of the Board of Directors (2003-2008). Unibet was founded in 1997 by a Swedish teacher who channelled his passion for mathematics and sports into creating a better betting service at a better price to its customers. Since inception, the motto of Unibet has remained: ‘By players, for players’. Fifteen years later, Unibet is listed on the NASDAQ OMX Nordic Exchange in Stockholm and predominantly owned by European institutional investors. Unibet is licensed by a number of EU Member States, including France, Italy, Belgium, Spain, Malta and Denmark. Unibet actively contributed to the establishment of the pan-European CEN WP 58 standard on responsible gambling and consumer protection (CWA 16259/2011), is a founding member of ESSA, the European Sports and Security Organisation, and is audited by independent bodies such as PwC, NMi, eCOGRA, G4 and GLI.

Théo VAN SEGGELLEN

Theo VAN SEGGELEN is the secretary general of FIFPro, the worldwide professional footballers' association. He is also a member of the FIFA Strategic Commission and of the UEFA Professional Football Strategy Council. He acts as a single judge at the FIFA Dispute Resolution Chamber, and he is a judge for the FIFA Transfer Matching System. He studied law at the university of Leiden, the Netherlands. He played professional football for Dutch club Telstar. He joined the Dutch professional footballers' association VVCS in 1980 and was union president from 1991 until 2005. He started working for FIFPro in 1992.

Androulla VASSILIOU

Androulla VASSILIOU is currently European Commissioner for Education, Culture, Multilingualism, Youth and Sport. Previously, she served as Commissioner for Health, from February 2008 to end 2009. She studied law and international affairs in London and practiced law in Cyprus for 20 years (1968-1988). During this period she acted as legal advisor to The Standard Chartered Bank and, later, to the Bank of Cyprus. Before her appointment to the European Commission, she was actively involved in politics in her home country, Cyprus. She was twice elected to the Cypriot House of Representatives: in 1996 and 2001 - representing the Movement of United Democrats (affiliated to the European Liberal Democrats and Reform Party ELDR). As a Cypriot parliamentarian, she was an active member of the European Affairs Committee and represented the Cyprus Parliament to the Convention for the future of Europe as an alternate member.

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Pedro VELÁZQUEZ

Pedro VELÁZQUEZ has worked for the European Commission since 1987. Currently he is Deputy Head of the Sports Unit at the Directorate General for Education and Culture. He holds a Master Degree in European Sport Governance awarded by the Institut d'Etudes Politiques de Paris, Sciences Po, and has been directly responsible for the preparation of the 2007 White Paper on Sport, and, following the entry into force of the Lisbon Treaty, for the 2011 Commission Communication "Developing the European Dimension in Sport. He was the manager of the European Year of Education through Sport 2004.

Jean-François VILOTTE

Jean-François VILOTTE is Administrateur hors classe at the City of Paris. With a DEA in public law from the Université Paris I - Panthéon Sorbonne, he was Elève-Administrateur at the City of Paris and graduated from the Ecole Nationale d'Administration in 1985 (Léonard de Vinci class, 1983-1985). He headed the Department of Architecture of the City of Paris from 1985 to 1989, becoming Technical Advisor to the Office of the Mayor of Paris with responsibility for urban planning and the environment in 1989. In 1991 he became Deputy Prefect, Secretary General of the Prefecture of Mayenne, then Deputy Director of the Office of the Mayor of Paris from 1993 to 1995. From 1995 to 2002 he served as Managing Director of the City of Paris economic development and employment agency. In 2002 he became Head of Cabinet of the Minister the of Sports, then of the Minister of Youth, Sports and Voluntary Associations until 2006. From January 2007 to March 2009, he worked as Managing Director of the French Tennis Federation. Head of the preparatory mission for the French Online Gambling Regulatory Authority (ARJEL) from April 2009 to May 2010. Since then he is the Chairman of ARJEL, the Independent Administrative Authority for the Regulation of Online Gaming in France. On October 1st, 2010 the Minister of Health and Sports gave him responsibility for discussing and coming up with proposals for ways of maintaining the integrity and honesty of sporting competitions in face of expanding on-line sports betting. His report came out on 17 March 2011.

Detlev ZENGLEIN

Detlev ZENGLEIN studied political science at the Universities of Bamberg und Bremen (Germany) from 1989 until 1997. His first contact with gambling came when he started working for the German state lottery (Staatliche Lotterieverwaltung) in Munich in 1999, first as a member, then as the head of the ODDSET team. In charge of the ODDSET game throughout Germany, his responsibilities included risk management, product marketing at national and regional level and advertising. In 2007, he took up a position as head of competition analysis at the Early Warning System GmbH in Zurich, becoming the company's general manager at the end of 2011.

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WELCOME

Damien ABAD MEP, Shadow Rapporteur for the EP Resolution on "Online Gambling in the Internal Market"

It is a true honour for me to be able to welcome you to the European Parliament today for this symposium on how to regulate gambling and betting in Europe.

I would like to thank Mrs AndroullaVassiliou, European Commissioner for Education, Culture, Multilingualism, and Youth for attending today's conference. I also thank Mr Jürgen Creutzmann, who is here with us today, and Mrs Christel Schaldemose, a significant leader in the field of consumer protection, who have organised this meeting with me.

I thank our partners, particularly the International Football Association (FIFA), the European Lotteries, the European Gaming & Betting Association (EGBA), the European PariMutuel Association (EPMA), Acsone, and Bel Casino, who have enabled the successful organisation of this conference.

Online gambling is a high-growth sector and is cross-border by nature. The European Union could not elude the many societal, legal, and economic challenges related to online gambling and could not leave the many issues linked to this activity to the European Court of Justice or to other jurisdictions.

Discussions related to online gambling began in the European Union in 2008. In 2009, the Schaldemose Report was adopted by the European Parliament,calling for a clarification of regulations into Community Law, a strengthening of cooperation between regulators, and a launching of surveys on the risks related to online gambling.

In March 2011, the European Commission conducted a wide consultation by means of a Green Paper.Further to the results, in November 2011 the European Parliament adopted Jürgen Creutzmann's Initiative Report on Online Gambling and decided that an Action Plan would have to be drawn up.

We are coming out of the consultation phaseand moving into action. We seek to take account of any requests you may formulate.

Today's conference will focus on three main themes. First, we will discuss ways to protect the consumer.Our second focus will be on the fight against fraud. Our last focus will be on the need to maintain integrity in the field of sport. 10 @

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OPENING SESSION OF THE CONFERENCE

Androulla VASSILIOU Member of the European Commission for Education, Culture, Multilingualism and Youth

It is with great pleasure that I am with you today, in the company of so many distinguished experts. I would like to thank the European Parliament for hosting this event, and in particular the three Members who were instrumental in organising it: Mr Creutzmann, Mr Abad and Ms Schaldemose.

I will focus my intervention on the specific issue of match-fixing, which is a topical one at the moment.

Sadly, over the past months, a number of new scandals have emerged that have shaken the sports movement. They remind us that match- fixing is one of the main threats to the integrity of sport; possibly the greatest threat, as the chairman of UEFA, Michel Platini has recently said. Sport organizations are taking a firm stance against every instance of match-fixing.

And we stand by their side. The EU has a stake in this fight. Let us not forget that we are treaty-bound to promote fairness in sporting competitions and to ensure the physical and moral integrity of our athletes.

In full respect of the competence of Member States and of the autonomy of sport organisations, we intend to play our role to the full.

We have recently published a study on the national legal frameworks for combating sporting fraud in the Member States. The purpose of this study was to improve our knowledge about how corruption in sport, specifically match-fixing, is covered in national criminal law, in order to better target our action at EU level.

It contains a number of recommendations on areas where our work could focus: such as overcoming loopholes in national legislation, improving police and judicial cooperation, and intensifying the exchange of information and best practices. Instead of embarking on a long-term harmonisation process, we should deliver concrete and pragmatic solutions.

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We have two organisations in Europe which deal with cooperation in cross-border investigation and the prosecution of serious crimes: EUROPOL and EUROJUST.

The Commission can help these agencies cooperate more closely with the sport movement and give higher priority to match fixing in their activities.

My colleague, Commissioner Barnier, who will be with you later today, has also been working on a number of initiatives: such as the Green Paper on online gambling and its follow-up, and the creation of a discussion platform for national gambling regulators. But he will certainly tell you more about these later.

Prevention and EU funding

There is also a lot that can be done in terms of prevention.

I am thinking, in particular, of educational programmes and awareness-raising campaigns. These are essential in reaching those most at risk of being approached to fix matches: players, referees and match officials.

Here, the EU dimension in sport becomes vital, because the EU can play an instrumental role in coordinating and financing such programmes and campaigns.

We have included the fight against match fixing as a priority theme of this year's Preparatory Actions in the field of sport.

In April we published a call for projects which, once selected, will run from next year up until the first half of 2014.

In 2014, when the EU's new seven-year funding period begins, we should have a dedicated budget for sport, and we have proposed that the fight against international threats to sport, including match fixing, be covered in our future Erasmus for All programme.

The Council of Europe

But beyond what the EU can do to safeguard the integrity of sport, we are also working actively with the Council of Europe. Council of Europe Sport Ministers have expressed their support for a Convention in this field. The Committee of Ministers also recently endorsed this proposal, and we understand that negotiation on the future Convention will be launched in the autumn 2012.

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A European Convention could send a powerful signal that public authorities are committed to fight match fixing. It would establish common pan-European standards to preserve integrity of sport against manipulation of results. It would also create a useful platform for pan-European cooperation by involving all the parties that need to work together: the public authorities, the sport movement and betting operators.

It is an initiative that deserves to be supported. And I believe that a united EU voice in this field would send a strong message and give impetus to the whole process. We are currently reflecting on how the EU may be represented at the negotiating table and bring added value in this framework.

Ladies and gentlemen, The issue of match fixing is high on the political agenda, and we are concretely pursuing a number of initiatives in parallel to fight it.

We need to coordinate and manage the different processes I have recalled, and conferences like today, where we have a meeting of minds, are essential in order to avoid duplication and maximise our effectiveness.

That is why I was so happy to accept your invitation.

I am sorry that I am unable to stay at the Conference for the rest of the afternoon, but I look forward to hearing about the stimulating ideas that will be shared at today's event, and I wish you a successful debate.

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ROUND TABLE I

WHAT NEW EU ACTION PLAN?

CHAIRPERSON Jürgen CREUTZMANN MEP, Rapporteur for the EP resolution on "Online Gambling in the Internal Market"

INTRODUCTORY SPEECH Claire BURY Director for Service, Directorate General Internal Market and Services of the European Commission

FOLLOWED BY A DEBATE WITH Ron GOUDSMIT Chairman of the European Casino Association (ECA)

Sigrid LIGNE Secretary General and Spokesperson of theEuropean Gaming and Betting Association (EGBA)

Friedrich STICKLER President of The European Lotteries and Toto Association

Jean-François VILOTTE President of ARJEL, the French on-line gaming regulatory authority

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CHAIRPERSON'S INTRODUCTION

Jürgen CREUTZMANN MEP, Rapporteur for the EP resolution on "Online Gambling in the Internal Market"

This Panel will focus on the EU Action Plan on Online Gambling. The Action Plan, announced for September of this year,will take the form of a Communication by the European Commission.

Within a short period of time, the Internet has opened up numerous new possibilities for gambling operators to offer their different services across borders. The legislation in many European countries has been overpassed by these developments. Single Member States are no longer able to guarantee sufficient consumer protection for their citizens. Minors and victims of gambling addictions are the most affected. Moreover, Member States lose millions of euros of taxpayers' money every year to illegal operators.

Legal uncertainty and unnecessary bureaucracy hinder the cross- border provision of gambling services in the internal market. As the principle of mutual recognition does not apply in this sector and no European licensing standards currently exist, the Commission has to decide on a case-by-case basis if the practices of the Member States are in conformity with EU law. Online gambling is still regulated exclusively at national or even regional level. The policies in Member States range from total prohibition of any form of online gambling to perfectly liberalised markets.

Following a long series of complaints, court rulings, and infringement procedures, Commissioner Barnier has realised that there is a case for EU action.

The European Parliament resolution of 15 November 2011 on "Online Gambling in the Internal Market" was adopted with broad support across all political groups. The text sets out a comprehensive set of actions in order to address the current challenges and opportunities related to online gambling in Europe.

Most importantly, the resolution calls on the Commission to explore all possible tools or measures at the EU level designed to protect vulnerable consumers, to prevent addiction and to combat illegal operators in the field of gambling, including formalised cooperation between national regulators, common standards for operators or a framework directive.

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The resolution further calls on the Commission to examine the possibility of proposing a legally binding instrument obliging banks, credit card issuers, and other payment system participants in the EU to block transactions between their clients and gambling providers that are not licensed in their jurisdiction. Such measures would make life more difficult for illegal operators and would channel demands that would create tax revenues for Member States. Blocking financial transactions is by far the best alternative to blocking websites.

Finally, the resolution urges the European Commission to fulfil its role as guardian of the Treaties and to pursue the pending infringement proceedings in order to ensure consistency of gambling legislation with European law.

Unfortunately, the Commission has not taken action on any of pending procedures since 2008.

The European Parliament is strongly in favour of a more active involvement of the European Union in the regulation of online gambling.

We are happy to see that Commissioner Barnier has taken the initiative to have met with national regulators several times here in Brussels. Nonetheless, cooperation alone with be insufficient for the fightagainst illegal gambling.

We hope that the Commission will include many of our good ideas in its Action Plan.

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INTRODUCTORY SPEECH

Claire BURY Director for Service, Directorate General Internal Market and Services of the European Commission

1) Context

The European Commission is currently preparing its Action Plan on regulating online gambling in Europe. Today's conference is taking place at a most timely moment.

The Commission received 260 responses to its Green Paper. It is now working on a summary to be released in September with the Action Plan. The responses to the Green Paper showed what the European Parliament in its wisdom already knew: that there is a need and a clear momentum for action in the area of online gambling. The responses also demonstrated that actions need to take place at EU level. It is no longer possible for individual Member States in the online environment to ensure sufficient protection for consumers.

One of the main aims of the Commission is to make sure that Member States work together to deal with their common challenges.

The work that you have done shows that we share common objectives: protecting consumers, preventing fraud and money laundering, ensuring the integrity of sports, and implementing administrative cooperation for combatting the illegal market.

Thanks to our numerous discussions, we are now on a common ground with the Parliament. Many of your good ideas will be picked up in the Action Plan. The cross- border nature of the matter means that Member States have to work together.

All of these issues certainly merit policy action and initiatives. The Commission has given a great deal of reflection to the issue of harmonisation of legislation, as suggested by the Parliament. The Commission has concluded that this is not yet the right moment in time to launch a legislative initiative that would deal with the entire gambling framework. Sometime in the future, harmonisation might be the right way to go.

2) RecentActivities of the Commission

The Commission has held a number of workshops on the issues that came up in the Green Paper with the participation of experts. The Commission published all the conclusions of the workshops on its website.

The Commission has also met with the regulators. These meetings have enabled the regulators to build mutual trust among themselves and to focus on their common goals. The meetings have also helped the Commission to engage with the regulators on the specifics at the national level in the different jurisdictions.

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3) Future Action

This coming autumn, the Communication will identify relevant EU and national initiatives. The three axes in the Action Plan will be, first,the measures for the protection of consumers and citizens, particularly of minors and vulnerable groups; second, increased safeguards on money laundering and fraud; and last, streamlined efforts on the integrity of sports.

The Commission has not forgotten that it is guardian of the Treaties. It will fully assume its responsibilities, will take decisions, and will bring clarity to what has occurred in the extensive case law.

We will be listening attentively to today's debate and will be happy to respond to you and to take your ideas forward for our work over the summer.

DEBATE

Sigrid LIGNE Secretary General and Spokesperson of theEuropean Gaming and Betting Association (EGBA)

1) WhoWe Are

The EGBA represents leading European online gambling companies. Our members are licenced in a growing number of EU Member States. We promote the development of sustainable, EU law compliant regulatory frameworks and high-level industry standards.

2) A GrowingMarket

Online gambling represents only 11% of the entire European gambling market, but it has significant growth potential. It is one of the few digital sectors where Europe leads the world, as it represents 45% of the worldwide online gambling market.

The sector is capable of generating new revenue streams. The entire European gambling market, including the traditional land-based segment, is expected to grow from €71.9 billion in 2010 to €79 billion in 2015.

3) Our Manifesto

Our manifesto presents the benchmark against which we will measure the forthcoming Communication and Action Plan of the European Commission. It lays out five key recommendations necessary for sustainable EU policy for online gambling. The policy would create a safe environment for the consumer, reflect the cross-border reality of the sector, and allow responsible European companies to contribute to European economy and growth.

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4) The Commission as Guardian of the Treaty

Our first recommendation is to see the Commission fulfil its role as Guardian of the Treaty. No economic sector can survive in a climate of sustained legal uncertainty. Action from the European Commission has become more necessary and legitimate that ever. The proper Court of Justice can no longer be put on hold.

5) A Necessary EU Legal Framework

Another vital recommendation is the implementation of an EU legal framework for online gambling. Our credo has always been that cross-border activity requires cross border regulation. Legislation should ultimately provide consumers with consistently highlevels of protection throughout the European Union and should ensure fair and sustainable market access for operators.

Our goal for the long term is the creation of a single license system. Our immediate priorities include the harmonisation of targeted licensing requirements and the defining of common technical standards, reporting tools, and consumer protection standards based on the workshop agreement published last year by the European Committee for Standardisation, CEN.

We are confident that these essential expectations will be reflected in the upcoming Communication and Action Plan. We are looking forward to continuing to work with the European Parliament and the European Commission in the positive and constructive manner to which we have all become accustomed to.

Friedrich STICKLER President of The European Lotteries and Toto Association

1) Who We Are

The European Lotteries have members in all 27 European Union Member States. The European Lotteries have a combined turnover of over €75 billion and operate more than 350 000 points of sales in the EU Member States, giving jobs to approximately 290 000 people in the EU. The State Lotteries operate for the benefit of society, as 70% of the GGR (gross gaming revenue) returns to society for the public benefit - more than 20 billion EUR in the EU each year.

The European Lotteries are also historic partners of sports. The Lotteries have recently approved a Sports Charter that covers requests for measures related to preserving integrity in sport, including the fight against match-fixing, money laundering, and other forms of corruption.

2) Essential Principles

The European Lotteries regard the following as have recently developed a set of essential principles for a sound and sustainable gambling policy:

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• The sustainable contribution of lotteries has to be taken into account in any coordinated approach at EU level.

• A national authorisation system is the best basis for a sustainable regulatory framework for gambling that protects consumers and prevents crime and fraud.

• Gambling operators must comply with the national legislation in the Member State where they provide their services and where consumers are resident.

• The lack of law enforcement and the absence of control over the illegal offer constitute the main challenge for governments and legal operators. Law enforcement is the most important issue for the future of gambling.

• The aim of cooperation between Member States should be to protect legal operators against illegal competition.

3) Concrete Demands for the EU Action Plan

is absolutely crucial for the EU Action Plan to clearly recognise the primary competence of the Member States in the field of gambling. Licences are national in scope, without mutual recognition.

There is no such thing as a "grey market". Any operator without a licence in a given country is an illegal operator in that country.

The principal aim of cooperation between Regulatory Authorities should be solidarity and heightening of effective law enforcement against illegal operators.

Countries need to cooperate to promote measures to preserve sport integrity and to fight match-fixing, money laundering and any other form of corruption. In order to prevent organised crime from taking over sport, it is absolutely essential to focus on this huge problem that extends beyond the borders of the European Union.

Ron GOUDSMIT Chairman of the European Casino Association (ECA)

1) Who We Are

The European Casino Association represents the voice of the total land-based casino industry in Europe. It is made up of about 800 casinos in 22 countries.

2) General Proposals for the EU Action Plan

The goal of the ECA is to see that theonline gambling market is based on safety, security, and responsibility. The ECAconsequently makes the following recommendations to the European Commission:

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• The developments of the online gambling sector and its inherent risks have to be taken into consideration.

• The illegal online gambling offer has to be addressed.

• Gambling should be treated as a sensitive service due to the health and fraud issues linked to it. Gambling cannot be a free trade service.

• Similar regulations, protection measures, and standards should be in place for online and offline gambling services.

• Member States are the most appropriate regulators to protect consumers and to prevent fraud in their jurisdictions.

• In order to adopt a gradual and global approach,neutral and audited independent data must be collected and analysed.

• Solutions must be sustainable and must ensure a level playing field for any type of gambling activity.

• A comparable taxation level must be applied to online and offline operations.

• Broader cooperation between all the stakeholdersin the sector must take place.

• Gambling licenses must solely be granted within the European Economic Area and should only be valid in the issuing country.

• A binding gambling policy should be established to enforce all requirements related to responsible gambling. Independent certificates and auditsshould ensure compliance with industry standards.

3) Enforcement

Avoiding unlicensed online gambling is crucial for protecting consumers and legal operators. With the support of EU policies, Member Statesshould put enforcement measures in place to protect consumers and legal operators.

Jean-François VILOTTE President of ARJEL, the French on-line gaming regulatory authority

National regulators are expecting a great deal from the upcoming Communication of the European Commission. This Communication should bring about clarification and should demonstrate true ambition related to regulation.

The gambling and betting sector is not a banal economic activity. The stakes of public and social order in this sector are huge.

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It would be useful for the Communication to remind us of the jurisprudence related to gambling that has emanated from the European Court of Justice, in particular that it is up to the Member States to frame and to regulate gambling in an appropriate and proportionate manner and that there is no automatic recognition of licences granted by a State on other territories in the Union.

This would be a useful reminder because regulation systems with no domestic market are still coexisting in the European Union.

It has to be stated clearly, and namely by the operators' associations, that none of their members can operate in a territory of the EU without prior authorisation by the State in question.

If these principles are strongly repeated and enforced, we will be able to move forward and to share ambitious goals.

Ambition is required because minimum standards could lead to minimum regulation and consequently to mutual recognition of the licences on the basis of low regulation standards. Due to the huge public and social issues at stake in the online gambling sector, I do not believe that it minimum standards would be reasonably desirable, nor would be moving straight away to having an EU level regulation. It would be useful for the EU Communication to first determine the axes of work and exchange that need to be developed.

The axes of work and exchange already opened are the good ones. Fighting illegal operators, on the basis on of the jurisprudence of the European Court of Justice, requires the definition of tools of Community law that could enable regulators to block financial flows and that could prevent Internet access to operators not approved by a State.

According to consumer protection, beyond principles, it seems to me very important to define measures: how make sure that minors and those that are excluded would be unable to play, that regulators be independent from the industry according to information on operators, in other words. which IT tools can be an aid for regulation, with respect to the protection of personal data. Those topics are central ones in terms of consumer protection as well as the fight against money laundering, the sincerity of online games and the security of online gaming software.

The issue of sport integrity is extraordinarily important and must be singled from the domestic market regulation, in other words from consumer protection, because it is not only about total transparency according to the bets placed from a Member State but rather about the fact that the sincerity of a sport event can be distorted in relation with bets placed outside of the European Union. Therefore an international forum is needed and the EU must be a stakeholder in the discussions with the Council of Europe and must bring its weight to assert its conception of ethics in sport. An international Convention could be drafted in the near future to harmonise standards related to prevention, detection, and sanctions related to sports fraud and match-fixing. This most important matter cannot be confined to the EU territory even though, at the

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same time, areas of reflection could be discussed within the EU so that Member States could find points of consensus for the maintenance of sports ethics: what could be subject of bets, has any type of bet the same level of dangerousness for sport integrity, are information links needed between operators and organisers of sport events, which autonomous warning systems must be implemented by public regulators?

Community reflections would easily be connected to the Council of Europe discussions towards an international Convention that could be ratified by a large number of states.

QUESTIONS & ANSWERS

Jürgen Creutzmann

I ask Mr Vilotte: Is it necessary to start with a European framework or a European Convention to have a stronger power against illegal operators who are outside of Europe?

I ask Mrs Ligné: What would be in your view the single most important measure to strengthen enforcement of EU law in the field of online gambling?

Sigrid Ligné

We need to bring about convergence in the way the market is regulated throughout the European Union. At the same time, we need to ensure that the principles in the Treaty are enforced throughout Europe. By means of our other recommendations, we believe we could deliver improvements in consumer protection and in fair market access and could enable much needed legal clarity.

Jürgen Creutzmann

I ask Mr Stickler: One common argument for the preservation of public gambling monopolies is consumer protection. Are public operators better suited to protect consumers than private operators? If so, why? Should regulation distinguish between lotteries and other more addictive forms of gambling?

Friedrich Stickler

State-owned operators and private operators do not differ in that respect. You might find that in a country of the European Union regulation is not sufficient according to the standards of your country. It is a question of control and supervision, which could be better implemented in the relevant State. There are often also significant differences in forms of protection in different countries due to different gambling histories and cultures. These are arguments for national regulations and frameworks. However, with regards to the fight against illegal gambling, I would support international cooperation and even the establishment of an international framework.

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Daniel Macadam, GamblingCompliance

What plans are there to introduce regulations related to social gaming, such as Casino and Poker StarGames on Facebook and on mobile phones, which may be a more threatening phenomenon than online gambling?

Jean-François Cot, General Delegate, Casinos of France

I ask the specialists not to give too many figures and to be very careful about numbers. Mrs Ligné has presented numbers on legal and illegal gambling. We do not yet know if it is €150 or €200 billion for illegal gambling. We often do not know the source of such figures.

From the floor

Mr Stickler gave us a figure of €1 000 billion for the illegal market. If we are to quote figures, could we have evidence to back it up and an explanation of what methodology is being used?

Jean-Christophe Tirat, Force Ouvrière Trade Union

In the framework of online gambling, the main issues are the impact on the turnover of casinos, the dramatic social impact on jobs, the lack of security for access to minors, and the destabilisation of the income to be taxed. Some operators are carrying out activities with legal licenses but the companies are hosted in tax havens. What do you intend to do to protect the activities of the traditional land-based casinos and the jobs of their employees?

Claire Bury

The Commission has decided to focus the Communication on online gambling for all of the reasons we set out in the Green Paper. There may be certain clarifications about jurisprudence that may be relevant more generally. Several of the stakeholders had made points to us related to remote gambling or other forms of gaming. We have tried to bear those comments in mind. We need to come to an agreement on the definition of online gambling as it is different in the different Member States. The Commission is aware of the fact that the target is moving and that we may have to adapt to it.

Sigrid Ligné

To reply to the question about the figures we use, we always provide the source of all the figures we use. The one we have used here is from H2 Gambling Capital one of the main sources for the industry, used also by several governments and institutions including the European Commission. Market figures are sometimes labeled turnover rather than gross gaming revenue, which leads to substantial differences and may be a reason for confusion.

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Jean-François Vilotte

According to social games and new playing devices such a mobile phone or tablet computers, it is necessary to enforce regulatory neutrality in order that the regulation goals and requirements remain the same for whatever device is used. We want all software devices to be certified because huge technical vulnerabilities have been identified especially according to the protection of personal data. We have to adapt the regulation techniques to the development of new forms of remote gambling.

There are two central and complex issues developing at the present time in the field of online gaming that regulation has to face. The legal principle is that gambling and betting is forbidden unless expressly allowed and specifically regulated. The alleged free games are advertised as being based on gratuitous economical schemes but actually rely upon the fact that the majority of players never get refunded. The pure skilled games expose the players to IT manipulations.

You mentioned difficulties encountered by land-based casinos. It should be emphasised that there is nothing worse in terms of competition for land based casinos than illegal operators that is to say unclear, uncontrolled and untaxed operators.

The challenge and originality of the Internet is to find out how we can adapt regulations to the digital economy. The alternative is: are the traditional regulation schemes based on prohibition and monopolies efficient online or must we make the choice of swinging from an illegal to a legal, transparent and taxed online gaming offer? To my mind the second branch of the alternative is the right one and the Rregulations are therefore always seeking to find the right balance between the attractiveness of operating legally and the objectives of the regulators in terms of public and social order. New regulations need to be constantly adapted and assessed in order to prevent illegal competition that will destroy jobs and will not generate taxes.

Friedrich Stickler

Referring to the question about figures, it can be noted that it is very difficult to carry out market research about organised crime. The figures of €100 or €200 billion of illegal turnover are quite evident. The figure going toward €1 000 billion comes from experts in Hong Kong who have an excellent overview of the Asian market.

Referring to the question of social gaming, as soon as Facebook would start to operate the biggest global poker platform, we will really have a problem. There is no age or identity control for such a gambling platform.

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ROUND TABLE II

PROTECTING EUROPEAN CONSUMERS

CHAIRPERSON Jürgen CREUTZMANN MEP, Rapporteur for the EP resolution on "Online Gambling in the Internal Market"

INTRODUCTORY SPEECH Gerhard MEYER Certified Forensic Psychologist at the Institute of Psychology and Cognition Research, University of Bremen, Germany

FOLLOWED BY A DEBATE WITH Michael BAY JØRSEL Director and Initiator of the Centre for Ludomani, Denmark

Philippe FONTAINE Managing Director of Acsone, IT Partner of the Belgian Gaming Commission, Designer of the EPIS System

Annette KOK President of the European Gaming and Amusement Federation (EUROMAT)

Etienne MARIQUE Magistrate and President of the Belgian Gaming Commission

Henrik TJÄRNSTRÖM CEO of Unibet

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CHAIRPERSON'S INTRODUCTION

Jürgen CREUTZMANN MEP, Rapporteur for the EP resolution on "Online Gambling in the Internal Market"

The resolution of the European Parliament on "On Online Gambling in the Internal Market" underlines that any regulation to online gambling must be underpinned by the subsidiarity principle. Member States therefore have the right to regulate and control within their jurisdictions and according to their traditions and cultures as long as such national action is sufficient to accomplish the public interest objectives of such regulation.

The European Court of Justice has made it clear that restrictions to provide gambling services must comply with certain rules. Such restrictions must be limited to what is necessary to achieve the public good objectives and must be suitable to the accomplishment ofsuch objectives.

The Parliament resolution emphasises that a pan-European approach to combatting crime and fraud has considerable added value. The resolution makes very clear that the EU needs to adopt common standards for consumer protection.

The European Parliament is of the opinion that a pan-European code of conduct for online gambling operators could be a first step. The Parliament calls on the Commission to support consumers if they have been affected by illegal practices and to prompt the formation of a European network for the exchange of best practices for the treatment of gambling addiction.

The Parliament asks the Commission and the Member States to collect and publish statistics on all types of gambling and gambling addiction in order to produce comprehensive data on the entire European gambling sector and to design strategies against gambling addictions.

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Introductory Speech

Gerhard MEYER Certified Forensic Psychologist at the Institute of Psychology and Cognition Research, University of Bremen, Germany

There has been worldwide proliferation of gambling over the past few decades. The introduction of new game types, transnational distribution channels, high-incentive jackpots, and the growing number of gambling venues have increased the availability.

At the same time, awareness has grown of the addictive nature of games of chance and of the severe consequences on financial, psychological, and social levels. In the new version of the Diagnostic and Statistical Manual of Mental Disorders (DSM5), to be published in May 2013, "gambling disorder" previously labelled as"pathological gambling" will be re-categorised from "impulse-control disorders" to "substance use and addictive disorders".

At the end of the 1990s, investigations concluded that with the increasing availability of gambling, the demand for gambling rises and the number of problem gamblers rises proportionally. This "exposure hypothesis" reflects the general rule used worldwide in the public health sector to assess the risk potential of addictive substances.

The "saturation hypothesis" assumes that the rise of problems due to exposure will stabilise and that there is no linear relationship as expected in the exposure hypothesis.

The "social adaptation hypothesis" suggests even a reduction of problems as social conditions intervene, making individuals resistant to gambling availability in the long term.

An analysis of 229 worldwide standardised prevalence rates of problem gambling from 1975 to 2011 shows that problem gambling rates seem to have tended to decline in most jurisdictions relative to earlier rates.

The widely accepted addiction potential of gambling has important implications for public health measures.

I would like to highlight three aspects of consumer protection:

• Exclusion of gamblers One promising approach to protecting gamblers is their exclusion. We have to differentiate between self-exclusion, initiated by the gambler himself, and third party exclusion, initiated by gambling providers or relatives. Only a very small number of problem gamblers make use of self-exclusion. As a consequence, early identification systems and exclusion by gambling providers should gain importance within public health measures.

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Further measures would include access control and the implementation of a transnational exclusion system. It is indicative to develop innovative models for a better linking of gambling bans with treatment services.

• Independent evaluation of responsible gambling measures Recommendations for optimisation of protection measures are only meaningful if gambling providers act in a responsible manner. It is therefore necessary to have an independent evaluation of the measures.

• Protection against fraud and manipulation Beside sports betting and match-fixing, Online-Poker is another example of a system creating problems of fraud and manipulation (e.g.. multi-accounting, use of poker bots, collusion tactics) which remain unresolved for regulators, providers, and consumers.

DEBATE

Annette KOK President of the European Gaming and Amusement Federation (EUROMAT)

1) Who We Are Euromat represents the gaming and amusement devise industry outside casinos.

2) Replying to Today's Symposium To the question "How to regulate gambling and betting Europe?" we reply that gambling in Europe is already regulated. However, the newest channel through which gambling and betting services are provided, the remote channel, seems to flout the law and ignore regulations while there is no real enforcement by Member States as to whether consumers online are being properly protected.

Our products are designed to provide customers with an enjoyable leisure and entertainment experience, in a safe and controlled environment. We pioneered the promotion of responsible gambling. Our long-established measures are now enshrined in national legislation. In some EU Member States this knowledge and experience is recognized through the licensing systems they have put in place which link an online operation to an existing operation - given the enormity of the illegality of companies providing gambling services online, and this without oversight in terms of player protection, this approach is the right one and one which should be replicated EU wide.

3) Our Principles In all of our dealings with our customers, we apply three main principles of corporate social responsibility: research, effective education and communication, and regulation. We have been calling for a European responsible gambling forum long before the existence of online gambling. We are also strong supporters of the role played by national authorities in the treatment of pathological gambling. As recognised by the European Parliament's resolution on online gambling, the risks to consumers in the online gambling environment are greater than those in the land-based environment.

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It is the duty of national and EU regulators to properly regulate the newest channel of gambling services. National and EU regulators should make use of our knowledge and experience with respect to consumer protection measures that have proven to be very effective

There is a need for better and more wide-reaching research on problem gambling EU- wide. Compulsive gambling, underage gambling, and protection of the vulnerable are serious issues. All legal gambling actors should share responsibility and take positive, constructive action in addressing them. Governments who enjoy substantial revenue from gambling activities cannot demure from playing a part.

To sum up: Consumer protection in the gambling environment is highly necessary. The greater risk involved in the online environment has been recognised. Online or remote gambling service providers must be legally obligated to properly protect their players, regardless of where the players are located. The rules must be properly enforced. The land-based gaming and amusement industry, should be seated at the table of discussions. National and EU regulators should make use of our knowledge and experience.

Michael BAY JØRSEL Director and Initiator of the Centre for Ludomani, Denmark

1) Who We Are

The Center for Ludomani, established in 1992, is Scandinavia's oldest and largest center for compulsive gamblers and their relatives. Throughout the years, we have developed a wide range of treatment options as well as preventive and educational programs.

2) State-of-the-Art

As of January 1, 2012, new legislation in Denmark partially liberalised the gambling market and ended the monopoly. Thanks to this legislation, it is now possible to establish a platform for on-going and mutually beneficial cooperation about responsible gambling for the benefit of all those involved.

Despite the many newly licenced gambling operators who are now operating legally on the market, the transition period from the monopoly has been quite calm.

We have observed three predominant and interrelated factors that explain why Europeans are gambling more and more: the increased number of gambling options, the availability of gambling, and the marketing procedures used.

These factors should promote awareness in society about the need for long-term grants for the prevention and treatment of problem gambling.

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3) Setting the Scene for Prevention

Prevention is essential and needs to become a priority.

Cross-national prevention projects in the educational system, social health sector, and corporate world need to be developed.

The establishment of ongoing, formalised collaboration among professional treatment institutions in Europe would bring an enormous contribution to the level of information and prevention for the benefit of all and would serve as an advisory board for national parliaments and the EU.

A European Code of Conduct involving a set of rules for responsible gambling should be drawn up.

Philippe FONTAINE Managing Director of Acsone, IT Partner of the Belgian Gaming Commission, Designer of the EPIS System

The purpose of my talk is to illustrate through live applications how an IT company can help protect players.

1) Who We Are

Acsone is an IT services companymade up of 40 or 50 high-skilled engineers specialised in building business applications. It focuses on automating business processes, and on the structuring of the underlying information.

Acsone attaches high importance on ethical values.

2) Acsone and the Gaming Commission in Belgium

Acsone won a public tender in 2001 issued by the Gaming Commission in Belgium. Since that date, Acsone has been working for the Gaming Commission for the implementation of its entire IT system: the dossier management system, the secure structured database, and the document management system.

3) Main Applications for the Protection of Players

Acsone has developed two main applications focused on the protection of the players:

• EPIS (Excluded Person Information System) A database collects information from the various databases of public institutions and can gather all of the cases of exclusion be they from the Federal Police or Ministry of Justice, self exclusions or third-party exclusions.

When a player goes to a casino or gaming establishment, he must enter his identified coordinates. A call is then made to the EPIS database through a web service or a web form. The person is either authorised to play or refused.

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• e-Games IT System

This application can check and control the online losses of players and can accept or exclude players. A player can play on different places of the Internet by providing an identifier. When the player is authorised to play, the online gaming body gets and receives the allowed online losses information and can start operating the online losses controlling mechanism.

4) Protecting Players in the European Market

From a technical viewpoint, the two applications are ready to be extended to an international level. If we built a European interface with a standard access, the Member States could put in place their own exclusion or early loss systems which might vary from one Member State to another. Such implementation would have to be supported by European or international bodies like the European Regulatory Platform (ERP).

Etienne MARIQUE Magistrate and President of the Belgian Gaming Commission

I shall try to focus on some of the issues that have been raised today.

I shall speak about the system that was set up in Belgium, and seems to inspire some States in the USA, that is, the junction of real gaming and virtual gaming. The same approach is used for both systems.

1) Addiction, Protection of Minors and Vulnerable Players

a) Cooperation between National Regulatory Authorities No real cooperation currently exists between national regulatory authorities. However, such cooperation is necessary. We have set up a European regulatory platform (ERP) so that those who are interested in serious cooperation are able to work together to discuss e.g. technical standards for the protection of players.

Cooperation needs to be at the European level. Europe should ask itself how the European market could be protected from offers from Asia, Costa Rica, and elsewhere. The authorities need to have the power to control and to restrict the operation of games of chance.

In the Belgian Internet project, we are ready to proceed to an assessment and to propose texts to the government. If accepted, the texts will be communicated to the EU and a degree of cooperation will be concrete for certain issues.

b) European Networks of National Organisations for Compulsive Gamblers A European list of excluded players is recommendable International events could also be organised related to the protection of players.

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c) Codes of Conduct In order to obtain a reliable and efficient system, codes of conduct must be guided by the regulators.

d) Black Lists Those who are not on the white list of authorised websites are potentially illegal websites. There should be special procedures for the illegal operators. Advertisers, financial organisations, and Internet access providers should be warned against them.

2) Fight against Cybercrimes in Gambling

Illegal gambling offers must be blocked. The Member States have to take on the responsibility of blocking such offers so that the market could be controlled and consumers could be informed. The process would require the exchange of complaints by gamblers and compliance with legal frameworks. We must be able to provide the appropriate technical responses. We need to have secure legal instruments to fight cybercrimes in gambling.

3) Fraud

Judicial cooperation to fight fraud exists but is not used. Gambling must be dealt with in a consistent manner. Legal authorities must be made aware of the dangers in gambling and of the existing (related) criminal offences. Regulators are the only authorities that have the capacity of carrying out effective investigations. They must be empowered to fight corruption in gambling.

4) Advertising

There is no international cooperation related to gambling advertising, although advertising campaigns are cross-border. They concern both land-based and online gambling. The EU should pay particular attention to advertising so as to respect national specificities.

Henrik TJÄRNSTRÖM CEO of Unibet

1) Introduction

Unibet believes that the European regulated industry is part of the solution and supports fact based policy making that leads to increased consumer protection.

2) Who We Are

Unibet was founded by a Swedish entrepreneur over 14 years ago as one of Europe's first e-Commerce companies. Its aim is to ensure that our 6.5 million customers play in a safe and secure environment we have so far invested over 200m EUR in tools and systems and all transaction are monitored 24/7 by trained staff. Around 25% of the 650

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people we employ are handling direct customer contacts to ensure highest possible service & security.

I want to underline 2 important points:

1) Good regulationreally matters for everyone and is the best mechanism for efficient consumer protection

2) Online and new technologies offer better possibilities to protect the consumer

3) Good Regulation Matters

Good regulation is the best mechanism for efficient consumer protection.

Consumer protection objectives do not substantially differ between Member States, but the regulatory tools that Member States allow to reach those objectives are very divergent and are often not adapted to market reality and consumer demand. So the question is not so much WHAT we should do, but above all HOW it should be done.

The current trend of market fragmentation and duplication leads to increased costs for operators. It also exposes consumers to a wide range of risks and potential abuse. It also destroys consumer value because we can't satisfy customer demands. The harmonisation of consumer protection rules and the creation of an attractive legal offer across all Member States is therefore the only practical way forward.

Bad regulation drives consumption underground and we believe it is a key challenge to ensure that as many customers as possible plays within a regulated scheme. Good regulation on the EU scale will ensure an attractive offer to EU consumers and will be the best safeguard against an unregulated black market.

4) Online - The Most Efficient Protection for the Consumer

As an online business, all interactions with our customers are registered, enabling fact based decision-making. It allows us to implement efficient consumer-protection tools as well as self-help tools and other risk-tailored solutions.

5) Going Forward

For these reasons, we call upon Member States and EU institutions to work together to ensure that EU consumers have access to an attractive regulated offer under the EU protected umbrella. If this is not available the consumers will shop outside the EU. The cross-border nature of the market is clear as are the risks of inaction that will drive consumers onto the black market without proper European consumer protection

To ensure efficient consumer protection, we need to have efficient proper regulation based on market reality and consumer demand

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QUESTIONS & ANSWERS

From the floor

My first question is for the CEO of Unibet. What is the number of employees in your company?

Second, what do the operators think of the practice of bonuses that are often diluted and are distributed only when the customer fills his account? This practice goes against the ideas expressed in the ethical speeches that operators deliver.

HenrikTjärnström

Unibet has about 650 employees today. We fulfil all the requirements put upon us by the different regulatory authorities, including the issues related to bonuses.

From the floor

We did not really get an answer to the question on bonuses. What is your position on this issue?

Etienne Marique

When I talk about gambling advertising, I include the advertising of bonus. Each country has its own language. I believe reflections have been made on bonuses. We should launch the debate on bonuses so as to decide how far we can go and what kind of cooperation we can have. This issue has an influence on national policies.

Stefano Mallia, Member of the European Economic and Social Committee on Online Gambling

Reference was made to white lists and black lists.When you speak of awhite list, I assume you mean a list of licence-holding operators in any Member State. I agree that the white list should be readily available for consumers so that they can check if an operator is licenced. I am not sure that the black list works, because there arethousands of illegal operators. I am also not sure who should be updating such a list.

I would also like to hear yourviews on the duplication of conditions.If we worked toward accepting thatprinciple, it would help increase the legal number of players rather than provide incentives for people to go illegal.

Etienne Marique

We have a black list to inform the public in general and website hosts, advertising companies, and banks, in particular, that investigations are underway for those illegal operators. We have seen that a certain number of illegal operators are targeting the national market. Gamblers should also be informed when they are playing on a site that is operating without appropriate licence and undergoes criminal investigation. 35 @

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Friedrich Stickler

I welcome the concept of black lists, because without them illegal operators could claim they are "grey" operators. When they are on black lists, everything is clear.

I invite other Member States to consider this concept

Stefano Mallia

People are on a black list they could just change their name and no longer be on the list. That is one reason I am concerned about how you could keep such a list updated.

To elaborate on my question about the duplication of conditions: It seems there is resistance to the idea of accepting that when conditions are duplicated in Member States, operators will have to re-apply in the different Member States for national licences. If we could accept the duplication of conditions, it would make licences cheaper and would provide more incentive for operators to obtain more national licences.

Etienne Marique

It is not at all under consideration for a Member State to recognise a licence from another Member State. A Member State is sovereign to appreciate the conditions it wants to impose. The fact that a licence is granted in another country has absolutely no effect.

Damien Abad

I have several questions for the other panellists:

First, how could we provide legal support that would be of better quality for consumers, especially for those who are victims of illicit practices?

Second, in some Member States addiction rates reach 2% of the population. Is this addiction rate comparable to the rates we know for video games or for land-based casinos?

Last, would you want the Consumer Directive to be extended to take account of online gambling?

Gerhard Meyer

It is important to have very early identification of problem gamblers. An important question is the amount of money that comes from problem gamblers. In Germany, 56% of the revenues from gambling machines come from problem gamblers. In the online field, we have to use the many available possibilities for identifying problem gamblers early.

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Michael Bay Jørsel

The rate of addiction in Denmark is relatively low. A study in 2006 showed that slightly less than 100 000 adult Danes had gambling addiction problems. A study in 2008 on people from age 12 to age 17 showed that almost all 30 000 people of that age group had problems with gambling in one way or another.

Politicians and the mediaoften ask if we will see an increase in the number of compulsive gamblers. To reply to this question on solid ground, we need new prevalence studies that will enable us to compare the figures from the old studies with the current rates.

My proposal for the Danish politicians has been to give the new operators on Danish territory the opportunity to get settled and to see in 2014 if anything has happened.

Jean-François Vilotte

According to the question of white, grey and black lists of operators, I think we should stick only to white lists of operators who are licensed in a country and solely have the right to operate in this country. Black lists are senseless because they may not be comprehensive. Grey lists are not more relevant because, to be illegal, an operator would have to work illegally in the country in question, which is of the judges' duty to determine. I think it would be interesting that the main operators' associations in Europe should engage in this issue and make sure that none of their members are working in a country without having previously been granted a licence in that country.

On the question of duplicate conditions, I agree with Etienne Marique that there should be no changes for the time being because of the principle of subsidiarity clearly stated in European Court of Justice Santa Casa judgement. Nonetheless, a regulator could take into account the appreciation of another regulator from another Member State when it delivers a licence in order to avoid a long process of finding reliable information.

As to identifying problem gamblers and addiction phenomenon, when online operators are online under a regulation system enabling direct access to exchanges between players and operators, there is information on gambling mechanisms that do not exist in land-based gaming.

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ROUND TABLE III

THE SPECIFIC CASE OF SPORTS BETTING - HOW TO ENSURE COMPETITIVEINTEGRITY? -SPORT FUNDING

CHAIRPERSON Damien ABAD MEP, Shadow reporter for the EP resolution on "Online Gambling in the Internal Market"

INTRODUCTORY SPEECH Pâquerette GIRARD-ZAPPELLI Secretary of International Olympic Committee (IOC) Ethics Commission

Charles LANTIERI Deputy CEO of La Française des Jeux

Remy NILSON Vice-President of the European PariMutuel Association(EPMA), Managing Director of ATG, the Swedish horse betting operator

Théo VAN SEGELLEN Secretary General of FIFPro (International Federation of Professional Footballers)

Pedro VELAZQUEZ Deputy Head of the Sport Unit, Directorate General for Education and Culture of the European Commission

Detlev ZENGLEIN General Manager, FIFA Early Warning System GmbH (EWS)

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CHAIRPERSON'S INTRODUCTION

Damien ABAD MEP, Shadow reporter for the EP resolution on "Online Gambling in the Internal Market"

We will address the issue of sports betting and reflect on possible courses of action for legislators, particularly in the European Parliament.

With the progressive opening of sports betting and of online gaming in Europe, we have witnessed growth in corruption and in match-fixing. If these phenomena are not quickly curbed, they will drive sports, the sports industries, and sports betting to their own peril.

The threat of corruption in sports and in sports betting has a huge social and economic dimension. Sports in Europe represent nearly 15 million jobs and generate annual added value of over €400 billion. We need to examine the means to fight against fraud in sports linked to sports betting.

Two essential issues come to the forefront.The first is the penalisation of fraud in sports. A Directive will have to define minimal rules, infringements, and the penalties that will have to be applied, and such definitions must be integrated into the legislation of all Member States.

The second essential topic is the recognition of the right to betting. The legal and moral responsibility of online operators comes with the question of their financial responsibility. A legal link between event organisers and betting organisers will have to be developed.

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INTRODUCTORY SPEECH

Michaela RAGG Assistant Director, Interpol Integrity in Sport Unit

1) Sportand Sports Betting

Sports have a very important place in our society and play a large and important role in our daily lives. If we want to continue enjoying the true essence of sports, we need to ensure integrity in sports.

The role of sports has changed. Through Internet gambling networks, international sports gambling has become extremely easy and accessible.It has been estimated that at the end of 2011, sports betting as a whole was generating bets of close to €200 billion.

2) Corruption

Estimates of the money made through illegal betting run into hundreds of millions of euros annually.

Where there is big business and big money, attempts for corruption naturally follow. Illegal gambling networks form a perfect environment for laundering money and making a profit with relative ease and very little risk of being detected. Once the money is channelled into crime groups, it is used for various criminal activities.

Illegal betting is an international cross-continental concern. To ensure competitive integrity in sports betting, it is important to involve all stakeholders worldwide.

3) The Role of Interpol

Interpol is the world's largest law-enforcement organisation. It unites police services from 190 countries. Its main objective is to prevent, investigate, and prosecute crime.

Corruption in sport has worrisome consequences that go well beyond the world of sport. Match-fixing and illegal betting are clearly linked to global-scale organised crime.

Interpol employs a holistic approach to attempt to diminish corruption in sports and sports gambling through the work of several teams and initiatives:

• The Interpol Major Event Support Teams (IMEST) These teams are deployed at the request of countries to assist national police in the preparation, coordination and implementation of security arrangements for major events, including major sporting events.

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• Operation SOGA Interpol also helps to coordinate multi-country enforcement actions targeting illegal football betting schemes through a series of operations called SOGA (short for Soccer & Gambling). So far, three SOGA operations have been conducted in Southeast Asia, resulting in several thousand arrests, the seizure of more than $26 million cash, and the closure of illegal gambling dens.

• The Interpol Match Fixing Task Force Interpol is involved in fighting match-fixing through a special task force bringing together police officers dealing with the investigation of match-fixing and illegal gambling from different countries and regions.

• The Interpol-FIFA Initiative Another aspect of the Interpol approach is prevention, including education and training. Interpol entered into a 10-year initiative with FIFA in May of last year. Entering into this partnership is recognition that corruption in sport is a complex problem requiring more than investigation alone. We need to put more emphasis on the preventive element if we want to be successful. The Interpol-FIFA initiative aims to develop global training, education, and prevention programmes for key actors on the football side to recognise, resist, and report attempts to corrupt or fix matches. The initiative also aims to better prepare law enforcement on match-fixing-related cases.

DEBATE

Pedro VELÁZQUEZ Deputy Head of the Sport Unit, Directorate General for Education and Culture of the European Commission

I represent the Sport Unit of the European Commission. Ourmandateas defined in the Treaty is to safeguard and promote integrity in sport.

Match-fixing is a huge threat for organised sport. It is a form of corruption and is often in the hands of criminal international networks. We are committed to fight against match fixing.

As a part of our actions, we decided to carry out an independent study that maps all the legal provisions in the national laws of Member States that combat the manipulation of sporting results. We recognise the need for cooperation and coordination between national law enforcement agencies and between law enforcement agencies and sport organisations.

We are perfectly aware that match-fixing is a global issue. We have been involved in global processes with different stakeholders, including the International Olympic Committee and the Council of Europe. At the same time, we are committed to taking action at EU level.

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Preventive measures areour main field of action at EU level. Educational programs and awareness-raising campaigns are essential for reaching out to those stakeholders who are most at risk to fix matches, such as players, referees, and match officials. Bringing together interested parties for cooperation and the sharing of good practices will generate clear added value.

Funding is instrumental for theimplementation ofour programs. In the preparatory actions in the field of sport, we launched a call for proposals to finance test networks. We hope to obtain good proposals before the end of this year.

The Commission has launched a Proposal for a future Sport Chapter in the "Erasmus for All" programme, planned to start in 2014, with a dedicated budget for sports. We will propose to integrate the integrity of sport into this programme.

Pâquerette GIRARD-ZAPPELLI Secretary of International Olympic Committee (IOC) Ethics Commission

1) Sports Manipulation due to Irregular and Illegal Betting

There are two key conceptsrelated to the issue of the manipulation of sports results through illegal betting: complexity and cooperation.

The issue is particularly complex because of the number of stakeholders in the field of sports: the organisers of the events, the athletes, the participants, the betting operators, as well as governments, ministries, justice, police, and finance organisations.

The manipulation of sports results is a global issue. The response cannot be exclusively European. The international perspective has to be taken into account.

In relation to the enormous volume of betting and the huge number of sports competitions that take place every day around the world, the amount of cheating linked to sports betting is minor.

Nonetheless, the consequences of such cheating are colossal. The reputation and the image of sport is undermined. The losses in the credibility of sport leads to the loss of the financial solidarity mechanisms.

Sports cheating affects all continents and all sports. Cheaters use all kinds of betting channels, both the legal and the illegal betting platforms and both online and offline betting. Measures have to take account of the different kinds of betting and the various geographical areas.

The sports movement decided to take very strong action against sports manipulation.The IOC is extremely firm in the implementation of a zero tolerance policy.

Nonetheless, the sports movement cannot act alone. It cannot come out of its own framework of sport. That is why it has asked for thesupport of public authorities and of public and private betting operators.

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2) Action by the IOC

The IOC has two main missions. Its first mission is to be a leader of the Olympic sports movement. Its second mission is to be the organiser of the largest sport event in the world, the Olympic Games.

In the framework of our first mission, the IOC has reacted to the issue of non authorised betting activities since 2004 and has committed itself to taking action.

After a period of analysis and of warnings, the IOC launched a Working Group Initiative in 2011 with international partnersincluding governments, international organisations and public and private betting operators.

The Initiative& led to the drafting of a list of four main types of recommendations: strengthening preventive measures, consolidating monitoring systems, developing sporting and criminal sanctions, and putting in place consistent legislative provisions.

Regarding the second mission of the IOC, that of organising the Olympic Games, the IOC keeps applying the zero-tolerance policy. Since 2006, the Code of Ethics has as stipulated that all participants are forbidden from betting or benefiting from bets on Olympic Games competitions. Since the Beijing Games in 2008, the IOC has been monitoring betting activities throughout the world.

At the Games in London, we will be able to enjoy the protection of British law concerning the prohibition of cheating on bets and of sports fraud.All members of the Olympic Movement have been specially alerted. A specific information programme will be available at the Olympic Village.

Detlev ZENGLEIN General Manager, FIFA Early Warning System GmbH (EWS)

Various incidents drove the FIFA, the International Football Association, to take any and all conceivable steps to protect football in a targeted and systematic manner from any negative influence in connection with sports betting.

Early Warning System GmbH, a subsidiary of FIFA, is a neutral and non-profit company founded in 2005.The company monitors sports betting on all FIFA tournaments and aims to identify potential irregularities in specific sporting contests. For this purpose, EWS maintains cooperation agreements with bookmakers, regulating authorities, and betting operators around the world. These entities contractually agree to report any irregular sports betting activities to EWS.

In addition, EWS monitors the worldwide sports betting market using its own technical monitoring system to detect any suspicious movements. It also runs and sustains a vast network of informants within the sports betting industry.

When analysis of EWS reveals an anomaly, FIFA or the mandating federation are informed. The mandating party decides how it wishes to proceed against the

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perpetrators within the limits of existing disciplinary proceedings. FIFA has adopted a strategy where misconduct in connection with match-fixing is consistently punished.

However, the freedom of FIFA or that of any other sports federation is relatively limited in terms of the disciplinary measures the organisation can take. We therefore see a growing need for cooperation between sporting federations and governmental investigative agencies.

An international legal instrument against match-fixing, aimed at ensuring that national, legal and administrative systems are provided with the necessary legal tools, expertise, and resources to combat this phenomenon needs to be developed.

The various individual national approaches towards sports betting have to be coordinated to install a common integrity umbrella. It is also vital to strengthen transparency in the realm of sports betting.

Theo VAN SEGGELEN Secretary General of FIFPro (International Federation of Professional Footballers)

FIFPro, as representative of professional football players all over the world, takes match fixing very seriously.

FIFPro does not deny that players and former players are involved in match-fixing. However, match-fixing never starts with the players.

Only a small percentage of players are involved in match-fixing. FIFPro sees such players as victims rather than perpetrators.Players sometimes receive criminal threats from organised crime to fix matches.

FIFPro is not happy with the zero-tolerance policy. Kicking players out of the game is not a solution. Suspending players who have been contacted by match-fixers will not stimulate players to inform the governing bodies, FIFPro, Europol, or the police.

FIFPro believes that the focus has been too much on the players. We need to focus on all participants, including presidents of clubs, federations, and coaches. Investigations have shown that a lot of match-fixing is dictated by the presidents of clubs.

Prevention through training and information is essential. It is our responsibility to explain the dangers and the consequences of match-fixing to our players. However, to really be effective, it would be necessary to approach 60 000 professional players.

Our suggestion is to coach and train all participants. Everyone involved should be required to sign a code of conduct.

Football cannot tackle the problem alone. We desperately need the support of Europol, Interpol, and governments. It is also important to harmonise national criminal law.

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Our organisation is limited to small steps and small measures. We cannot solve the issue of match-fixing by ourselves.

Financial fair-play has to be implemented. Investigations have revealed that 55% of players approached for match-fixing had not received their salaries on time. A better system of referee appointments should be implemented. The methods of control also need to be improved.

Former players are often in poor financial situations a few years after they stop playing. A lot such former players become involved in match-fixing. Giving former players the possibility to start a second career would be a small step in the right direction.

Match-fixing is the biggest threat for the game. Time is short. All those involved have to take real action now.

Charles LANTIERI Deputy CEO of La Française des Jeux

The Française des Jeux is the French Lottery. It offers sports betting for more than 35 years. The Française des Jeux is the first partner of French sport. It has funded €4 billion as part of the French public budget for sport over the past 30 years. It has also created a Foundation dedicated to sports in 1993. Based on our experience as both a sports betting operator and a partner of French sport, we have strong convictions that we share with the European Lotteries. These convictions have been formalised into Codes of Conduct.

We believe that in order to defend sport integrity unambiguously, sports betting operators first have to support all forms of sport, from grass roots to professional sports, including with financial contributions. The European Lotteries that offer sports betting bring every year more than €2 billion to sport while the Française des Jeux contributes €200 million per year to sport. The Française des Jeux also signed various partnerships with national sports federations and has been a partner of the French Olympic Committee for more than ten years.

We believe that it is important to support sports in terms of ethical values. Through our professional cycling team, we have implemented strong rules to fight against doping. As we believe that sponsors should get involved in maintaining the integrity of the sport they sponsor, we created a sponsor's charter.

The actions to be implemented to prevent sport corruption fall under three main categories and have to be developed simultaneously:

• The framework of sports betting

Some betting types (e.g exchange betting) are more risky than others (e.gmainbook) concerning the risk of money laundering. The framework of regulation has to take this into account. Some events on which bets are based are easier to influence. Conflicts of interest can occur at the level of the sports movement, the event organisers, or the

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sportsmen. We have clear rules at the Française des Jeuxto avoid such conflicts of interests. Cooperation in terms of betting monitoring needs to be extended to a worldwide level.

• A legal framework for criminal sanctions In terms of criminal sanctions for corruption in sport, we support establishing and harmonising at the European level a clear definition of fraud in sport. Compulsory reporting of suspicions of corruption or money laundering should be extended to betting operators and financial organisations.

• Cooperation between the various actors Cooperation between governments, sports betting operators, and sports federations needs to be institutionalised. The sports movement should be able to determine the kind of betting that should be organised in its sport and should also be able to implement coordinated monitoring and investigations. A system of financial contribution needs to be set up by sports betting operators. Such a system already exists in the French law.

There is a lot of money in sport today, but there is not necessarily a lot of money for sport. Cooperation between all stakeholders is needed urgently in order to stop the development of corruption.

Remy NILSON Vice-President of the European PariMutuel Association(EPMA), Managing Director of ATG, the Swedish horse betting operator

I represent EPMA, the European PariMutuel Association, representing horse-betting companies from 11 countries in Europe.

EPMA is behind integrity, transparency, neutrality, and fairness among the punters.

Our model, the Tote PariMutuel model, has been in place since 1864 and functions extremely well.

The system is simple. The governments of Member States decide what kind of bets we are allowed to do. They also decide the takeout. We start selling bets, and the winnersshare what comes after the takeout.

This model has several very strong points:

• The operator has no interest in the outcome of the game or the result. This prevents the risk of fraud.

• The punter can always follow odds changes in real time, and is always updated on what is going on in the betting pool.

• The takeout is quite clear for the punter and could be used for good causes and funding.

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It is easy for us to find and take anyone who tries to cheat our model, because we can see immediately if anything is going wrong.

It is important for the European Parliament and the European Commission to take account of the Tote PariMutuel model when they discuss integrity and funding.

QUESTIONS & ANSWERS

Jean-Pierre Kratzer, President of the European Trotting Union

What is happening with decisions related to the return for the sport sector and the protection of the event organisers? In horseracing, the revenues from the betting we organise are our own returns. They fund the sector as well as the rural and agricultural economy. Could the protection of the organisers and the sectors be taken into account by regulators in the recommendations of the Communication of the Commission?Before autumn, will there be indications about the possibility of protecting the sports sectors and the sports organisers?

Pedro Velázquez

We are just about to launch a study on the rights of sports organisers. The study should clarify many issues and help us to make decisions. The results will be available next year.

Jean-François Vilotte

We have spoken about the responsibility of the sports movement to protect the ethics of a sport event. Nonetheless, how can a sport event organiser make sure that ethics will be protected in relation to sports betting if he is not even informed by the betting operators that betting is going to be recorded?

Jean-François Reymond, European Federation and Syndicate of Players

I represent the European Federation of Associations of Sports Players that represents more than 25 000 sports players. I agree with Theo Van Seggelen that attention should not be drawn only to the players but to everyone who takes part in a competition. We have to focus more onthe intermediate levels who make up massive sources of corruption.

Education is important and face-to-face training is key.People who play sports in Europe are European citizens. They cannot be exempted from everything for life. The focus should be on the young athletes and on the athletes being trained. They will determine what happens on the field in the future. Moreover, national and international organisations should recognise the competencies and the added value that players' organisations can contribute to the fight against corruption.

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Michaela Ragg

From a law enforcement perspective, the worst that can happen is if a player has negative consequences for putting forward information. It would not allow us to understand what happens and people would no longer talk. I hope there will be a possibility of protection for players.

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CLOSING REMARKS

FROM CONSULTATION TO ACTION

Michel BARNIER Member of the European Commission for Internal Market and Services

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

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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:

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.

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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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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.This plan will also address the issue of financial return ("retour filiere").

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.

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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.

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.

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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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CLOSING REMARKS

Andreas MAVROYIANNIS Deputy Minister for European Affairs of Cyprus

I would like to thank you for organising this Conference at such a relevant moment for such a sensitive issue.

I thank all of the speakers for their significant contributions and all of the participants for the high quality of the ensuing questions and debates.

We now have at our disposal a foundation of suggestions that will be extremely useful for all of us. It is high time to act. All of the elements you have contributed will be extremely useful for our colleagues at the Commission currently working on the Communication on Online Gambling in the Internal Market.

We all agree that the rapid growth in online gambling opportunities coupled with the different national regulatory frameworks between Member States and the ensuing growth of the unauthorised cross- border market have made the need for action in this field extremely pressing.

We need to protect citizens. We need to shield consumers from abuse. We need to regulate the market for the benefit of legal businesses while respecting the principle of subsidiarity.

Globalisation and the possibilities offered by technological advances make our challenge increasingly more difficult.

We have two important contributions at our disposal: the results of the Commission's public consultation and the relevant European Parliament Resolution adopted last November.

We will therefore welcome the Commission's Communication on Online Gambling, which should bring more clarity on three axes: administrative cooperation between gambling regulators of the European Union and European Area Member States;consumer protection; and responsible advertising.

The focus of administrative cooperation could be on the exchange of general and specific information and best practices.

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We are happy to hear that the Commission's Communication will provoke initiatives at EU level on a set of common rules regarding consumer protection.

Three days before the official launch of the Cyprus presidency of the Council, I hope that we can bring building blocks to these issues.

We are very happy to hear that the Commission will also be presenting a Fourth Directive on Money Laundering that will take into account the need for gambling and betting. In the coming presidency, we will be initiating discussions on this Directive and are looking forward to new legislative proposals.

We are looking forward to the Commission's Communication on Online Gambling in the Internal Market. We will be ready to examine it at Council level and will work to moving forward on these very important issues. Our aim will be to draw up a comprehensive framework that will respect our shared values and our idea of sport and its rightful place in society.

56 THANKS

Jürgen CREUTZMANN, MEP, rapporteur on "Online gambling in the Internal market " and Damien ABAD, Member of the French Parliament, former MEP, shadow rapporteur for the EP resolution on "Online gambling in the Internal Market" thank all stakeholders for their participation at the conference: "How to regulate gambling and betting in Europe? Track record and future perspectives". Their communications have contributed to the quality and success of these debates.

Their recognition goes to FIFA, to EGBA (European Gaming and Betting Association), to EPMA (European PariMutuel Association), to The European Lotteries, toAcsone, toBelcasinos, and toEuromat: their partnerships and supports have enabled the holding of these discussions which accelerate the implementation of a new EU action plan.

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