The European Union’s new digital regulations could have a prolonged effect on gambling operators within and outside its borders. This could be an early sign of a shift in gambling regulatory oversight. Experts believe the European Accessibility Act (Directive 2019/882), the Artificial Intelligence Act (Regulation 2024/1689), and the Digital Services Act (Regulation 2022/2065) could have far-reaching consequences on gambling operations.
Key Notes from the Story
- The EEA mandates specific accessibility standards when catering to EU customers. The DSA regulates digital intermediaries, such as hosting services and online platforms. The AI Act enforces transparency in AI operations and sets compliance standards for consumer-facing interfaces like chatbots.
- The frameworks could force offshore gambling operators to reassess their compliance status when targeting EU players.
- Failing to comply with the new statutes may lead to fines, license suspension, and damage the operator’s reputation.
Regulators Aim to Strengthen Player Protection Norms
In their latest publication titled Betting on Compliance: What the New EU Digital Regulations Mean for Gambling Companies, Ted Shapiro and Tamas Szigeti of UK law firm Wiggin LLP explain how the proposed regulations will affect the gambling industry within the EU and beyond its borders.
The experts discuss three notable legislative instruments that gambling operators must thoroughly evaluate to comply with the evolving standards:
- European Accessibility Act (Directive 2019/882),
- Artificial Intelligence Act (Regulation 2024/1689),
- Digital Services Act (Regulation 2022/2065).
Szigeti and Shapiro explain that the new regulations aim to improve digital accessibility, protect player interests, and govern the applications of evolving tech, like Artificial Intelligence. The updated statutes are notable for their scope and reach, extending beyond the EU’s borders.
The European Accessibility Act (EEA) enforces strict protocols for serving consumers in the European Union. The act is a formal directive that member states will individually enforce within their boundaries, starting June 28, 2025. The law will serve as a requirement for market entry.
Every online gambling platform operating in the EU must ensure that its services are transparent, easy to understand, and operable for differently-abled individuals. While the games might be outside the purview of the EEA, associated services such as account management and eCommerce tools are most likely covered. This will make mobile and web platform architecture and customer support services more user-friendly.
Lack of Regulatory Clarity Could Challenge Enforcement
Despite the clear intent, the absence of a standardised implementation procedure means that any deadline is strictly theoretical. While lawmakers have allowed a five-year grace period for active licence holders, the lack of regulatory clarity might cause compliance challenges for the operators, in particular those looking to launch an online gambling business.
Additionally, B2B software providers may face the heat, despite the EEA governing B2C operators, due to the trickle-down nature of the business components, such as the software and platforms. The Digital Services Act (DSA) further complicates the compliance issue.
The DSA regulates digital intermediaries, such as online platforms and hosting services. Gambling operators using social interaction tools like live chat come under its purview. As a result, operators must now meticulously moderate user-generated content and regularly publish transparency reports detailing their efforts.
Moreover, operators must diligently comply with their terms of service when handling unlawful content. The DSA also regulates gambling advertisements. Online gambling platforms must clearly label any content that promotes gambling in real-time. This applies to both mobile and web-based gambling platforms.
An EU-wide voluntary code of conduct to further guide online gambling operators regarding iGaming advertisements is underway. The new law is expected to overhaul the current gambling commercial regulations, reining in operators targeting cross-border traffic.
Keeping Up with Evolving Tech
The third regulation in the limelight, the Artificial Intelligence Act (AI Act), is in the initial stages of deployment. This law applies to gambling operators using AI tech, such as AI chatbots, fraud detection systems, personalised content engines, and player behaviour analytics.
The AI Act mandates transparency when using AI systems and introduces compliance standards for high-risk applications involving the consumer, like chatbots and customer support tools. As gambling operators continue experimenting with AI technology, the AI Act will ensure that industry standards are strictly met.
The AI Act is expected to fuel heightened oversight in areas involving AI decision-making, such as marketing personalisation, responsible gambling, user verification, and customer support. Companies developing proprietary AI tech must document and justify their design and deployment moving forward.
The EAA, AI Act, and DSA collectively upgrade existing industry standards. They reflect a broader shift in EU policies related to player safety, accessibility, and tech implementation. The fact that overseas operators targeting EU consumers must comply with these regulations signals a shifting trend in the EU’s regulatory oversight.