Belgium Betmarkets conference 26th March 2007, Vienna Evelyn Heffermehl ULYS law firm

Belgium Draft proposal on games of chance Initially presented to the House of Representatives on 7 December 2006 Draft bill inserted in the 2006 Finance Act in order for it to come under an “emergency procedure” Adoption was scheduled end 2006 Withdrawal due to lobby by the National lottery and the Belgian casino grouping Now examined by the House under normal bicameral procedure Adoption was scheduled end of February but delayed Tentative to have the act adopted without the internet provision Time of adoption unknown: political negotiations going on

Belgium Current regime  2002 Act: National lottery monopoly to organise lotteries, and games of chance, betting and contests through the means of the “information society” (online)  1999 Act: Games of Chance subject to licence by Gaming Commission  1963 Act on sports betting : licence system on competitions and betting concerning sport events results granted by the Sport Ministers of the Belgian Communities (only pool betting)  Fixed-odd betting not regulated but liable for taxation: loophole used by EU remote gaming operators  Horse betting subject to authorization by Ministry of Finance  No licence available for internet gaming: prohibition  SMS games authorized only in the framework of a complete television program

Belgium Conclusion: lack of uniformity + legislation unsuited to increasing offer of online games “Despite the Games of Chance Act, control over the exploitation of games of chance remains too fragmented and opaque” (Study by the Catholic University of Louvain)

Belgium The draft bill: the main points 1)All bets subject to the new law and to the extended competence of the Gaming Commission 2)Possibility for EU gaming operators to apply for a “reliability certificate” with the Gaming Commission to operate games of chance and sports bets via the internet (not via other information society services) 3)Authorization of games operated via a media (radio and television) provided fulfillment of certain conditions to be set out by implementing act

Belgium Principles  Exploitation of a game of chance or a bet subject to a non transferable license granted by the Gaming Commission  Creation of “betting agencies” to operate limited number of fixed (permanent) or mobile (occasional) sports betting agencies for a 9 years renewable term, subject to licence by Gaming Commission  Conditions will have to be fulfilled, such as to be a EU national, benefit of civil and political rights, lack of conflict of interest, transparency, fulfillment of tax obligations, identification requirements of players etc…  Additional conditions, duties and modality of application for licenses to be set out by implementing act

Belgium  Possibility to apply for a “reliability certificate” with the Gaming Commission to operate games of chance and sports bets via the internet  Conditions to be fulfilled relating to The security of payment operations between the operator and the player The financial capability of the operator The applicable rules for games of chances The operator’s policy concerning the accessibility of socially vulnerable groups The handling of complaints, the means of surveillance and control of the operated games of chance The respect of the tax obligations The rate of redistribution Payment of a guarantee  Other conditions to be set out by implementing act  Both Belgian and other EU operators would be able to apply for a reliability certificate

Belgium Concluding remarks  Bill reflects ongoing changes in many member states confronted to internet gaming and to EU law  Aims at bringing Belgium in line with EU requirements of “consistency” as set out in ECJ case-law (“Gambelli”)  Reliability certificate granted to private operators would bring Belgium in line with ECJ “Placanica” ruling However  Uncertainty as to adoption of the bill  Might be adopted without the internet provisions: ongoing negotiations  Remaining issues : SMS, media games (i.e, can SMS games of chance be offered via radio?)  Developments are being followed closely

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