Digital Services Act: a new tool to fight illegal online gambling?

The EU Committee on Internal Market and Consumer Protection (IMCO) is voting today on the proposed Digital Services Act (DSA). According to European gambling groups, the law contains various principles that can facilitate the fight against illegal online gambling.

In a webinar on the topic organized by European Lotteries (EL) on Friday, several industry representatives commented on the current draft law. Members of the European Lottery Association mostly agree that the law could have a positive impact on the gaming industry.

In December 2020, the EU Commission published the first official draft of the planned digital services law. The EU law pursues various goals:

• Rules on illegal online content should be modernized.
• Liability for problematic and illegal content should be clarified.
• Companies should be more effectively obliged to operate transparently and responsibly.
• Fundamental rights should be better protected in the online space. 

No anonymity for online businesses

There is currently no international legislation on gambling in the EU. However, the law on illegal services offers international instruments against illegal online gambling for the first time, explains Petri Lahesmaa from the Finnish gambling monopoly Veikkaus.

According to the group's EU affairs advisor, the new law puts an end to the anonymity of online businesses in the EU. The included KYBC (Know Your Business Customer) rules will allow consumers to check the authenticity and legitimacy of companies and thus expose fraudsters. This also applies to online gambling at bedste online casino.

The term "Know Your Business Customer" is analogous to the more common "Know Your Customer" (KYC). KYC rules are common in the regulated gambling sector around the world. Gambling operators are required to collect proof of identity and address from their customers, while KYBC rules oblige (online) companies to publicly verify themselves by providing information about their server, official company address and email address.

The Digital Services Act also provides mandatory reporting tools for hosting providers. As Frédéric Deroyne of the French national lottery Française des Jeux (FDJ) explains, this will allow all internet users to report illegal activities and content online.

According to Deroyne, this is an important tool in the fight against illegal gambling websites and prohibited gambling advertising.

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Gambling associations should get a louder voice

While reporting mechanisms should in principle be available to all, this presents a particular opportunity for gambling associations, explains Dimitra Voulgari from the Greek gambling group OPAP.

The Digital Services Law, for example, refers to so-called "proxy flagging reports" [note: people or institutions that are considered to be particularly knowledgeable in a certain area, so their reports are considered with priority]. For example, if a "trusted person" reports illegal online gambling content, the platform host must respond immediately. How to make the most of your casino experience on a cruise ship has already been covered in this post.

Vulgari suggests that European Lotteries as an association should strive to obtain such a Trusted Flaggers label. This gives EL a very effective tool in the fight against illegal online gambling.