According to the Hellenic Gaming Commission (HGC), there are regulatory gaps in Greek gambling that need to be addressed. Following a series of issues related to the closure of the online gambling company Betshop, the regulatory body issued a statement on September 5, 2024, emphasizing the need for reforms to better protect the interests of players.
In Greece, the total gambling revenue in the first half of 2024 reached 1.349 billion euros, an 8% increase compared to 1.248 billion euros in the same period of 2023. "The online gambling market is very dynamic and growing. Overall, it is still not a mature market. Compared to many other European and international countries, Greece is at the forefront in this field. However, the institutional framework has gaps, and the rapid growth of the industry has exacerbated these gaps," the HGC stated.
Protecting Players' Funds
According to the Hellenic Gaming Commission, despite Greek regulations following international best practices, there are flaws in protecting players' funds. This issue became evident when Betshop's player funds were seized by the Independent Public Revenue Authority (AADE).
The gambling operator faced a 25 million euro fine after a tax audit in 2014, and its accounts (including those holding player funds) were seized by AADE, forcing the company to cease operations.
Currently, Greek gambling regulations include provisions for special accounts and guarantees to compensate players' winnings in case of operator bankruptcy. However, as demonstrated by the Betshop case, these mechanisms are insufficient. The HGC pointed out that stronger legal protections are needed to prevent players' funds from being treated as corporate assets.
After the closure, the HGC revoked Betshop's operating license. It also began efforts to return players' funds, although the process has proven challenging due to the lack of established mechanisms to manage such situations. The commission is developing a dedicated platform to facilitate the identification of eligible players and verification of their balances.
Lessons from Capital Market Regulation
Compared to the financial industry, the HGC outlined a possible development path, adopting practices from the Hellenic Capital Market Commission. These practices include stricter accounting oversight, increased transparency, and clearer separation of corporate assets and client (or player) assets. The goal is to develop a more comprehensive regulatory framework for the gambling industry, including insurance mechanisms and safeguards to prevent the mishandling of players' funds.
The HGC has begun consultations with licensed operators and industry experts to refine its proposals, aiming to submit recommendations to the Greek government in 2024.
