Report on Online Casino Future in EU

European governments are refusing to open up their betting markets to foreign gambling companies, The Economist reports.

According to the report, the largest crackdown on gambling companies is taking place in the Netherlands, which has increased the pressure on foreign betting companies and only allows its residents to place online bets with the state monopoly De Lotto.

"Its tactics seem to have been copied from America, which in 2006 struck at online-gambling firms by threatening the banks that they used," the report said.

"In February the Dutch Ministry of Justice warned banks in the country that they could be prosecuted for transferring money from the accounts of Dutch residents to those of online-gambling firms abroad."

The Economist also cited a study by Gambling Compliance that says Germany, Estonia, Sweden and Hungary have either passed or are contemplating laws to force Internet providers to block access to gambling sites.

Noting that European governments claim they are protecting consumers, The Economist refuted this by pointing out that in countries such as the Netherlands and Sweden, online gambling is still allowed through the state monopolies. The tax on gambling winnings in the Netherlands, for example, is set at 29%.

The gross profit from online betting in Europe is thought to be about $5 billion a year, the report said, proving why this is such a big issue.