Gambling Makes Up 3% Of Europe's GDP

Published: Friday, November 10, 2006 Online-Casinos.com

GAMBLING MAKES UP 3 PERCENT OF EUROPE'S GDP

Swiss study says betting services alone generate billions


According to a study carried out by the Swiss Institute of Comparative Law, gambling accounts for 3 percent of the European Union's total gross domestic product, with betting services alone raking in nearly $8.7 billion in 2003, according to an October 12 report into gaming services in member states.

The study - undertaken at the request of the European Commission in 2004 - examined the legal and economic facets of gambling and games of chance in the European Union. The report also looks at regulations and future development of the industry.

Online gambling in particular, the study says, will continue to evolve as offshore gambling is booming.

When examining gambling restrictions in EU member states, the report found that monopoly restrictions go against the Treaty of Rome and may be focused on financial gains for public revenue at the expense of the consumer. The study also suggests that there are inconsistencies in gambling taxation in member states that distort the market.

Commenting on the report, the European Betting Association (EBA) and the Remote Gambling Association (RGA) said the study shed significant light on the European gambling market and its potential, but also reveals a fragmented industry with inconsistent regulations.

"Although the findings of this Study which confirm what we have witnessed and suffered in our daily business for years by these restrictions, the European Commission has yet to announce any next steps based on this study," the organizations said in a statement.

The RGA and the EBA are calling on the EU to ensure there is an even playing field for its private operators to compete with state-owned or sponsored organizations and for consumer protection to minimize any negative effects of gambling.