The Belgian Gaming Commission (BGC), or Kansspelcommissie, began regulating the online market in 2011 when it amended its gambling laws to include internet gaming. Online gambling is permitted; however the licensing process leaves some operators wondering if the market is worth it. On the other hand, players are highly protected under the current regulations.
Overview
The BGC’s method in granting licenses in similar to what the United States started out with in that it grants internet gaming licenses to those with existing land based gaming licenses or those companies in partnership with land based operators. Applications for “online only” companies continue to be denied.
Online gaming operators are only authorized to provide gaming services to Belgian punters with a license from the BGC. There are hefty fines in place not only for the operator but also the player who places illegal wagers. Players face fines up to 25,000 Euros while the operator can be assessed a fee of up to 100,000 Euros for accepting the bet.
Belgium’s population...
... also plays a part in its online gambling business.
As you can see, it’s not the easiest feat to obtain land based partnership and apply for an online gaming license. With Belgium being a smaller country, not many are keen to undergo the lengthy process to operate legally within the market.
The opinion of some is that it simply isn’t worth the rigmarole when there are larger regions worth targeting and don’t have such stringent requirements.
The Royal Decree of 25 October 2018
1. No Nore Bonuses
The Royal Decree pf 25 October 2018 which outlines rules and regulations for online gambling and betting within Belgium had sections partially annulled in February 2020. As a result of sections being annulled meant it is forbidden to advertise free spins or bonuses, this includes no deposit offers, cashback, loyalty rewards and even deposit bonus offers
2. Player Spending Limits
According to the Royal Decree of 25 October 2018 rules implemented in March 2020 limits the standard expenditure limit of €500 per week per player. A player can request the limit to be increased, however this has to be approved by the Belgium Gaming Commission in order for the operator to proceed with the increase.
3. Stricted adverising rules
Online Operators are to abide to strict advertising rules. They cannot mispresent gambling as a potential source of income and all online casinos and gaming halls can only directly market /publicize on their own website
Licensing
Online casinos are granted A+ licenses to enter Belgium’s online market at an initial fee of 250,000 Euros. There are currently just a handful of websites that have proper licensing and they must have a .be domain. Among those sites with A+ licensing are Casino777, PokerStars, Unibet, Napoleon Games, bwin, Ladbrokes and Atomik.
Gaming arcades are granted a different class of licensing referred to as B+ and the third class is F1+ for online betting. This may all seem a bit confusing especially when you see some of the same websites listed in different licensing categories.
The types of online licenses are granted based on the gaming services the land based partner offers in the land based environment. In essence, land based and online partners should be in the same business whether it be casino games, sports betting etc.
On top of the different kinds of licenses for each gambling format, there is a different restriction in the number of permitted instances of the format. Thus, for a long time, the Belgium Gaming Commission didn’t permit more than 9 casino and poker establishments, and only near the end of 2014 did it increase the number to 11. Arcades and slots were restricted to 180, although measures have been implemented (September, 2015) to decrease the number significantly in order to boost their sustainability.
Ultimately, the matter of lottery and sports betting is a separate issue handled by Belgium’s National Lottery, which is why the restrictions are least stringent. In fact, land-based and lottery draws were the first gambling activities to gain authorization, while sports betting establishments appeared slightly afterwards. Nevertheless, they are solely subject to a short notice period, especially since they only need to comply with one restriction – being one kilometre away from another shop of its kind.
During 2018, a key change has been made in regard to the 21% VAT tax imposed on operators licensed under the jurisdiction. Such a tax rate was proposed and enforced back in 2016, on top of the existing 11% tax charge on their revenue. However, March 2018 saw the Constitutional Court of Belgium rescind this policy in order to keep operators willing to maintain their share in the industry.
By the end of the year, the matter of advertisements came up, even though it had been an issue in the past years as well. Effective immediately, in November 2018, all advertisements of interactive gambling services, as well as those of sports betting operators before 8 p.m. were completely banned on TV and during live sports broadcasts.
Deposit methods also took a hit during the same legislative decision – credit cards were prohibited as deposit methods. Amount limits were also imposed – weekly deposits are now capped at €500, while monthly bonus offers – at €275.
As the year came to a close, the BGC Director set up a project for the EC – Standardisation of online gambling regulations. As the name and the cooperation with the EU suggest, this project is set to:
- outline the general provisions which would be later adopted by each member-state across the continent,
- and consequently, facilitate communication between jurisdictions and operators, as well as their proper functioning.
While the project, surveyed by the Technical Committee 456 will only see daylight in the second quarter of 2020, its framework provides significant incentive for everyone in the industry.
Belgian Blacklist
Any operator providing gambling services from a website that does not have a .be domain may be placed on the blacklist. There are have been a series of sites placed on this list over the years and the BGC even wanted to add social gaming apps to its list claiming that it attracts a younger market. The blacklist is available on the BGC website.
Further Reading
Nearby Restrictions
Germany
France
Luxembourg
Netherlands
Similar Restrictions
Antigua and Barbuda
Austria
Aland Islands
Denmark
Estonia
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