Online gaming is an issue in Europe just as in it is the US. Here is a paper discussing the matter.
Julia Hoernle, Queen Mary University of London, has published Freedom to Provide Services and Online Gambling. Here is the abstract.
This Article looks at the conflict between national regulation of gambling on the one hand and the freedom to provide services within the EU/EEA on the other hand. Operators of online gambling from Member States with liberal licensing regimes (such as Malta or the UK) may wish to provide gambling services to consumers in Member States prohibiting or restricting certain forms of online gambling (such as Germany, France, Italy, Portugal, Norway) and may argue that such prohibition or restriction is an infringement of the freedom to provide services guaranteed under the EC Treaty. The Article examines the social policy objectives behind the regulation of online gambling, EC law (the freedom to provide services, attempts to harmonise the relevant laws and country of origin regulation) and analyses in detail the jurisprudence of the European Court of Justice (ECJ). The Article concludes by taking stock of the current jurisprudence and by looking at the likely future developments.
Download the paper from SSRN at the link.
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