Gaps in Greek gaming laws, says the regulator

Garance Limouzy September 5, 2024

SiGMA news

According to the Hellenic Gaming Commission () there are gaps in Greece’s gaming regulation that need to be addressed. Following a series of issues tied to the closure of online gaming company Betshop, the regulator published a , stressing the need for reforms to better protect players’ interests.

In Greece, the total gross gaming revenue for the first half of 2024 reached €1.349 billion, representing an 8% increase compared to the same period in 2023, when GGR stood at €1.248 billion. “The online gambling market is extremely dynamic and growing. Overall, it is not yet a mature market. Greece is at the forefront of developments in this field compared to many other European and international countries. However, there are gaps in the institutional framework, which are exacerbated by the rapid growth of the sector,“ declared the HGC.

Protecting players’ funds

According to the HGC, Greece’s regulations, despite adhering to international best practices, have shortcomings when it comes to protecting players’ funds. The issue came to the forefront when Betshop had its player funds seized by the Independent Authority for Public Revenue (AADE).
The gaming operator, which faced penalties of €25 million following tax audits from 2014, had its accounts seized by the AADE, including those holding player funds, forcing the company to cease operations.

Currently, Greek gaming regulations include provisions for special accounts and guarantee letters to cover players’ winnings if an operator fails. However, as demonstrated in the Betshop case, these mechanisms are not enough, explained the regulator. The HGC cited the need for stronger legal protection to prevent player funds from being treated as company assets. Following the shutdown, the HGC revoked Betshop’s operating license. It has also launched efforts to return players’ funds, although this process has proven challenging due to the absence of an established mechanism for managing such situations. The Commission is working on developing a dedicated platform to facilitate the identification of entitled players and the confirmation of their balances.

Regulatory lessons from the capital market

Drawing comparisons with the financial sector, the HGC outlined a potential path forward by adopting practices from the Hellenic Capital Market Commission. These include tighter accounting oversight, increased transparency, and clearer delineation between company assets and customer (or player) assets. The goal is to develop a more comprehensive regulatory framework for gaming, including insurance mechanisms and safeguards to prevent the mishandling of player funds. The HGC has begun consultations with licensed operators and industry experts to refine its proposals, aiming to submit recommendations to the Greek government by 2024.