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Can B2B Licensing Help EU Countries Fight Black Market?

28 March 2021, 11:11
Votes: 1

The European Gaming Mini Meetup "Regulator's decisions and politics" came up with several interesting topics. One of them was the experts' conversation about the recent situation and possibilities of B2B licensing to fight with illegal gambling markets. Login Casino follows the latest legislative news in gambling, presenting the most interesting aspects of the regarded question discussed digitally on March 25.

Can B2B Licensing Help EU Countries Fight Black Market?

As the meetup was dedicated to regulators' decisions and politics, the speakers raised the issue of B2B licensing as the possible way to decrease the channelization of the legal markets and the ability to fight the black one.

B2B licensing as possible solution against channelization

The first to talk about the issue was Gustaf Hoffstedt, Secretary-General at the Swedish Trade Association for Online Gambling. He explained the situation in Sweden and said that their 25% black market leakage could be fought by implementing the B2B licensing. Thus, the expert clarified that he expected Sweden-licensed B2B suppliers to sell products only in their country. It comes as the result of the situation that B2Bs can sell digital products to both legal entities and illegal ones, pressing the tax-paying ones. The expert has admitted that such an idea still doesn't guarantee positive results but can be the step towards better investors' relations. Mr. Hoffstedt has also mentioned that the implementation of such a system should be made by dealing with all the details as the latter usually make the difference, so one can expect B2B licensing in Sweden only in a couple of years.

Is B2B licensing communistic approach or rational target?

Ludovico Calvi, the President at Global Lottery Monitoring System (GLMS), supported the overall idea of B2B licensing and made an emphasis on it as the naturally growing trend. Moreover, the expert sees this direction as one of the checkpoints for the upcoming years as even 70-80% channelization (which is declared by Sweden) is a nice target for many states. At the same time, Ludovico has reminded that developing this direction should be made without turning to communism as private organizations can not be told what to do with their products and whom to sell. So he called to adopt this system.

How can politics influence the situation?

 illegal markets

An interesting point of view came from Romania when Odette Nestor, a former Romanian regulator, President at Asociatia Organizatorilor de Jocuri de Noroc la Distanta (AOJND), entered the discussion. She said that Romania was quite effective in tackling the issue of illegal markets when imposed blacklists, B2B licensing, and similar measures, even though such an approach required improvements with time. However, the expert criticized the recent situation in the country's regulation of gambling. Thus, she called it too politicized, which meant that some people of the national gambling regulator could not understand the market's principles, so the situation didn't take a step ahead.

The importance of adequate conversation between the sides

The moderator of the meetup, Morten Ronde (lawyer, lobbyist, and entrepreneur from Denmark), also raised the issue of the dialogue between all the sides of the process related to B2B licensing. He admitted the effectiveness of such a conversation in the UK but didn't see suchlike effectiveness in other countries. Ludovico Calvi agreed with the expert on this idea and claimed that the discussions in that regard were rather hot in Italy.

Read moreHow is online gambling in Europe organized in general?

Read moreIs it hard to receive a Malta license for B2B and B2C sectors?

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