EU's New Rules Threaten Gambling Operators: Act Now or Face Penalties
European gambling operators face a wave of new regulations that could significantly impact their news operations. Lawyers Ted Shapiro and Tamas Szigeti from Wiggin LLP's Brussels office are urging operators to prepare for increasing regulatory pressures from Brussels.
The European Union is set to introduce new rules on digital services, accessibility, and AI. These could have a substantial effect on the gambling sector. Operators must swiftly realign their platforms with EU standards to avoid potential penalties and gain a competitive edge.
The Digital Services Act, already in effect, may require gambling operators hosting user-generated content to implement new content moderation and transparency news measures. The European Accessibility Act, coming into force in June 2025, presents a substantial challenge, potentially affecting B2B vendors. Meanwhile, the Artificial Intelligence Act could bring stricter regulations for gambling companies using AI for player profiling, fraud detection, and customer support.
In Germany, licensed iGaming operators like JackpotPiraten and BingBong have already adapted their platforms to comply with stricter player protection and compliance news requirements. They actively use technology and cooperate with regulators to meet rising European regulatory pressure. Enforcement activity is expected to intensify once each law becomes fully applicable, necessitating proactive risk assessments by gambling operators.
Gambling operators must stay ahead of these regulatory changes to safeguard their reputation and avoid future scrutiny. Early preparation can offer a competitive edge and help operators navigate the emerging regulatory ecosystem. Stricter regulatory mechanisms and increasing scrutiny will force more operators to align with changes, potentially disrupting the status quo and favoring early adopters.
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