Memorandum from The Ministry of Taxation
(DGB 44)
With reference to press notice of 19th November
2003 the Danish government would hereby wish to present written
evidence to the Joint Committee for the Draft Gambling Bill on
issues concerning remote gambling.
1. The ministries responsible for gambling
regulation in Norway, Sweden, Denmark, Iceland and Finland have
been following the development of the international gaming market
on the Internet and the proposals for the reformation of British
gaming legislation very closely.
2. Gaming in the Nordic countries has traditionally
been a restricted activity only permitted pursuant to stringent
legislation. The main purpose of our restrictive legislation is
the need to uphold legitimate interests with regard to public
policy and order as well as to limit damaging social consequences
such as problem gambling and fraud. A second ground, which is
not without relevance, is that betting and lotteries may make
a significant contribution to the financing of benevolent or public
interest activities such as social and charitable undertakings,
sport or culture.
3. Gambling has up to now been a terrestrial
activity where countries have been able to determine their own
legislation, which may differ from legislation in other countries.
Remote gambling over the Internet introduces gambling as a cross
border activity. We therefore consider it to be of the utmost
importance that the member states of the international community
address this area with an open discussion with the objective to
contain and determine the conditions for the development of this
form of gambling with regard to negative social consequences.
4. We do acknowledge that Great Britain
wishes to confront the problem of offshore-based Internet operations
targeting British citizens, and to contain and regulate these
gaming offers within Great Britain accordingly. We are however
concerned with the negative cross-border consequences such a policy
may entail as no limitations to the extent and con-tent of remote
gambling outside Great Britain has been laid out in the Draft
Gambling Bill. If implemented, such a policy would seriously limit
the liberty of the governments and parliaments in the neighbouring
countries of Great Britain to pursue an independent national gaming
policy. It would also undermine the sovereignty of our and other
countries to set limits to the growth of the market and force
them to accept forms of gambling that are not a part of their
gambling tradition.
5. We also fear that a liberalized British
policy on remote gambling with the clear objective to export British
gambling services will lead to much stronger competition on the
emerging global Internet gaming market, which at present is not
subject to any international regulation at all. This market is
deemed to be a dark zone for potentially dangerous criminal activities
by a great majority of the member states in the international
community. We have also reason to believe that such a development
will lead to an uncontrolled increase in problem gaming related
to re-mote gambling over the Internet.
6. As we understand, these concerns are
not unique for the Nordic countries. The European Court of Justice
has also accepted these concerns as legitimate in several rulings
allowing Member States of the European Union to pursue individual
policies with regard to gaming legislation limiting their obligations
as laid down in the EU treaty.
7. Internationally, there are clear signs
amongst an overwhelming and growing majority of OECD countries
towards the formulation of a norm of respect committing countries
not to allow gaming operators established in their territory providing
games to citizens of other countries, unless special agreements
exists. We believe that many countries share the view that regulation
of the gaming market is primarily a concern for the state in question.
8. Taking into account the widely practised
policy of respect for national regulation in the international
society, we ask the British parliament to take into consideration
the legitimate interests of the Nordic and other countries upon
its deliberation and assessment of the Draft Gambling Bill on
the issue of remote gambling. As an interactive media, which is
recognised to have a revolutionary long-term impact on our societies,
the Internet calls for internationally co-ordinated actions in
order to avoid any disillusionment on the part of the citizens.
9. The Nordic countries have already been
in contact with and held a meeting with the Department of Culture,
Media and Sport regarding our concern with regard to the proposals
on remote gambling. During these discussions representatives of
the Nordic countries were advised to refer the matter to the Committee.
A copy of our letter of 15 May 2003 is enclosed.
10. Finally, it should be emphasised that
the Nordic countries are ready at any time to provide the Committee
with any information needed for the further clarification of our
view on the matter of remote gambling. Representatives for the
Nordic countries are more than willing to attend any hearing in
London the Committee may wish to hold on this matter.
December 2003
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