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Will a Digital ID Stabilise EU Gambling Legislation?
By Shane Addinall Feb 03, 2022 IndustryThe EGBA discusses what a cross-border electronic ID verification system in Europe could mean for the continent’s online gambling providers and players. Could this be the first step to a more harmonious industry?The European Commission proposes digital identities for all citizens across the EU Member States. The European Gaming and Betting Association (EGBA) believes the proposal has positive implications for online gambling in the EU, although there may be some challenges to face.
Under the proposal published on 3 June 2021, the Commission indicated their intention to establish the framework for a European Digital Identity (e-ID). The goal is for most EU citizens in all Member States to make use of the e-ID by 2030. This will require an amendment of the Commission’s existing eIDAS regulations.
According to a survey that asked citizens in Europe what they think about a pan-European e-ID, 63% of the participants showed they are in favour of it. Users will store their personal details and the e-ID in a digital wallet for ease of access and data protection.
Keeping Up With Digital Demands
Targets outlined in the Commission’s 2030 Digital Compass include that any European citizen, resident, and business will use the e-ID anywhere in Europe. The Commission aims to make all public services available online by 2030. The proposed changes incorporate private services and all public services. A much-needed upgrade from the current eIDAS which only has a limited scope within the public sector.
The European Commission reviewed eIDAS Regulation during 2020 and the report revealed where the 2014 framework needed improvement. The Commission believes for an interoperable e-ID to be successful, there needs to be more flexible legislation and a common requirement for all EU Member States to develop a framework to support e-ID processes. To date, only fourteen members of the EU submitted e-ID schemes to the Commission.
Citizens’ electronic identity wallets can store much more than just their ID. The proposal suggests that personal information such as e-mail addresses, banking details, certificates, driver’s licence, medical records, and more can make up the contents of the wallet.
Cooperation Required
A system of this size can only be successful if all parties involved jump on the bandwagon. Both EU public bodies and private organisations must implement the framework and offer citizens the option to use their e-ID. Citizens need to register themselves for the initiative and make use of it. This becomes a challenge for illiterate residents and those who distrust online services.
A project of this size and the Commission’s aim to make it regulatory requirements would mean that international online platforms like Facebook, Amazon, and igaming websites would have to accept e-IDs from EU citizens. Ursula von der Leyen, President of the European Commission, in her State of the Union address, 16 September 2020 commented:
“Every time an App or website asks us to create a new digital identity or to easily log on via a big platform, we have no idea what happens to our data in reality. That is why the Commission will propose a secure European e-identity. One that we trust and that any citizen can use anywhere in Europe to do anything from paying your taxes to renting a bicycle. A technology where we can control ourselves what data is used and how.”
The Eurobarometer survey showed that 72% of social media users were concerned about what happens to their personal data. A benefit of the digital ID, as listed by the Commission, is more control of how much personal information users want to share with services.
Online Gambling KYC and Digital IDs
Regulated online gambling markets within Europe are fragmented, at best. The EGBA believes the EU e-ID could be an answer to constant calls for harmonising the continent’s igaming industry to a certain extent. With a fully functional e-ID system accessible in any of the EU Member States, they may reduce frustration for operators and gamblers relating to KYC and AML requirements.
Online platforms must adhere to stringent protocols relating to know your customer (KYC) and anti-money laundering (AML) practices. Player identification is also at the heart of effective social responsibility obligations. Interoperable, cross-border, e-IDs make it possible for providers to keep their fingers on the pulse with the aforementioned processes.
The proposed e-ID system will streamline ID verification processes that currently either refer to national databases or require players to submit copies of their paperwork. Eleven of the Member States have national electronic identification schemes, but the other States utilise more labour intensive, time-consuming practises. Some still process these documents manually. Hence the EGBA’s applause for obligated cooperation from all Member States.
Last Steps to Realising the Goal
For the regulation to take force, Parliament and Council must reach a common position on the proposal. The committee on Industry, Research and Energy will work on proposing a report with amendments. They will then vote on the proposal in July 2022. According to the EGBA, they only expect that they will reach a final position in 2023.
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