New opportunities in Belgium? Evolutions and updates on the belgian gambling landscape By Tatjana Klaeser, Attorney-at-Law elgian gambling and betting services, and the Gambling Commission’s policy plans are likely whether land-based or online, are to blow a wind of change over the Belgian gambling regulated under the Law of 7 May landscape and to further strengthen the development of 1999, generally referred to as the new business opportunities with interested parties. B Belgian Gaming Act (“BGA”). Under Article 4 of the BGA, the o er of gambling or betting Prospects for the casino industry services is subject to the prior granting of a license from e opening of two new casino premises the Belgian Gaming Commission. ese licenses can be e Belgian Government’s Agreement (Accord de granted for a large array of games but the number of Gouvernement) of 10 October 2014, which discloses Tatjana Klaeser available licenses for each type of gaming service is the Government’s future policy actions and political limited (the “numerus clausus principle”) by secondary ambitions, announces that it “will amend the Act of legislation (Royal Decrees). May 7, 1999 on gambling, gambling establishments Since the reform of the BGA by the Law of 10 January and player protection (“BGA”), in order to increase the 2010, the holder of a land-based casino, gaming arcade number of Class I gambling establishments (casinos) or betting license can also apply for a “supplementary” to eleven”. license allowing the o er online of games equivalent to e Government’s Agreement does not only impact those already o ered o ine (the “o ine requirement”). the brick and mortar business. Due to the o ine As a result of both the numerus clausus principle and requirement contained in the BGA, opening new land- the o ine requirement, the Belgian gambling market is based casino licences also means that the number of somewhat of a “Members’ only club” restricted to local casino web sites will be increased to eleven. land-based operators which have o en been there for Currently, under the provisions of Article 29 of years. is is one of the reasons why Belgium’s online the BGA, only nine land-based operators are entitled gambling bill has been much criticised by the European to run casinos and operate online casinos in the Commission, which, in November 2013, declared its country, respectively from Knokke-Heist, Ostende, intention to le an infringement proceeding against the Blankenberge, Middelkerke, Brussels, Namur, Dinant, Member State. Chaudfontaine and Spa. Despite these restrictions, the Belgian market is not Given that two of the larger Belgian cities are inaccessible to foreign operators, as land-based licensees missing from the list of communal territories allowed have systematically partnered with gambling services to establish a casino, propositions have been made providers from other jurisdictions to develop joint that the cities of Antwerp and Liege may be the next to opportunities. receive an authorisation to grant a casino concession to e Belgian Government’s recent decision to allow the their candidates. opening of two new land-based casinos, the impending is development is bound to reshape the Belgian expiry of certain land-based gambling concessions casino landscape, introducing some welcome change 14 | European Gaming Lawyer | Autumn Issue | 2015 into an otherwise rather restricted market. of a transparent, proportional and non- has made clear the intention of the coalition Although the concrete selection criterions for discriminating procedure. parties to authorize international cruise potential candidates to a casino concession Indeed, on the grounds of Article 76 of ships, which have an onboard casino or still need to be de ned, interested parties the BGA, concession agreements which have gambling hall, to operate these in Belgian should move quite quickly to get a head been concluded before 31 July 2001 shall waters until mooring in a national harbour. start on the application process, which remain e ective, unless a shorter contractual implies negotiations with the relevant local period is foreseen, for a maximum period of The gaming halls sector administration for the concession itself as 20 years. Hence, these concession agreements Room for growth in the online segment well as ling a licence application with the can only be valid until 31 July 2021 at the As for casinos, the operation of gaming Belgian Gaming Commission. latest. e regulator’s conference documents, arcades is subject to a licence from the It is important to note that concession published on 28 May 2015, provide an exact Gambling Commission and the conclusion agreements by the relevant communal timeline regarding the impending expiries of a prior concession agreement with the administration and licences by the regulatory (table below). commune. authority go together: Article 4 of the In the light of this context, the Belgian e number of gaming halls is limited, Royal Decree of 26 June 2002 provides that Gaming Commission underlined that by Article 34 of the BGA, to a maximum of concession agreements shall automatically the (almost automatic) extension of 180. On 2 April 2014 the Belgian Gaming terminate with the retrieval or the ending of existing concession agreements by local Commission attributed the last available their corresponding Class A casino licence administrations is no longer something license to the applicant who came rst on a (valid for a renewable period of 15 years). obvious, especially with respect to waiting list, so that the maximum number On the other hand, on the basis of the BGA, competition law and general European law of gambling arcades admitted on the Belgian being entitled to a casino concession is a principles. Local administrations are thereby territory has now been reached. condition to remain an A class licence holder. invited to carefully examine all applications Despite the strong demand for gambling before deciding to renew a concession halls licences, the sector in general has been e expiry of casino concessions agreement. facing di cult times in terms of revenue, Another factor for change in the showing important di erences from one Belgian casino landscape can be found Gambling on international cruise ships operator to another. in the impending expiry of several land- Furthermore, the Government’s Agreement e operators doing best are those which based casino concessions. At a Study Day conference held by the Belgian Gaming 2016 2017 2019 2020 2021 2023 Commission on 27 May 2015, the regulator Middelkerke Knokke Namur Brussels Spa Dinant stressed that in the coming six years, eight Blankenberge Chaudfontaine out of the currently nine land-based casino Ostende concessions will terminate and that new Source: A01. Van Cauwenberge “Nota studiedag: thema Concessies van kansspelinrichtingen Klasse I concessions must be concluded on the basis (Casino’s) Conclusie” European Gaming Lawyer | Autumn Issue | 2015 | 15 are able to compensate their potential losses reviewed its numbers to limit the reduction country’s regulatory authority and it remains on the land-based market through their to 150 arcades, according to an o cial to be seen whether the political decision online operations. Yet, only 34 o ine license publication on its web site of 18 August makers decide to translate them into action. holders also hold a supplementary license 2015. e reduction should be implemented For operators interested in the Belgian for online operations. Currently, there are progressively to 174 by the end of 2015, 165 gaming halls segment, this could be a only 27 di erent web sites to o er online in the course of 2016 and 150 in the course call to overtake and restructure weaker arcade games in Belgium. is also means of 2017. businesses which could otherwise potentially that there is still much room le for business A rst step consists in encouraging get squeezed out of the market, should partnerships aiming at developing the online operators to hand back their licence on a the legislator indeed decide to follow the arcades sector. voluntary basis. e conference working regulator’s advice. documents and the Commission’s online Market concentration around its strongest publication list further measures the The betting sector actors regulator intends to undertake supporting e regulator’s position in favour of e working documents of the Gaming this opinion. ese include no more licence a market concentration has not spared Commission’s Study Day conference held on issuances when a licence becomes vacant the betting sector. e Belgian Gaming 27 May 2015 underline the regulator’s e orts, (e ective immediately and for a renewable Commission, competent for the regulation over the past years, to consolidate the market period of 3 years), no more acceptance of betting services since 2011, notes in its and improve its pro tability, for instance of relocation requests a er 30 October Conference working documents of 28 May by easing the rules and requirements on 2015 (unless the relocation is made in the 2015 that the canalisation of betting o ers is the relocation of premises. According to same commune and in agreement with still insu cient. the Gaming Commission, one of the side the communal administration) and the According to the authority, reducing e ects of these policy actions was that no application of stricter conditions of solvency the number of land-based licences seems more B class licences have been granted to for operators to be able to keep their licence. appropriate to stop the spreading of the o er. market new comers. Another side e ect is However, the number of gaming Currently the number of licences is set at 34 the evolution of a rather diversi ed market arcades being set by the law, it is not an for bookmakers (organisers of bets), 1000 for towards a market where several, bigger, administrative authority’s prerogative to permanent betting shops (takers of bets), and capital strong, groups have overtaken smaller discretionally decide to reduce this number.