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The applicability of the Digital Services Act (DSA) to online gambling operators within the EU raises crucial compliance questions, even though they are not classified as Very Large Online Platforms (VLOPs).
Understanding the DSA for Online Gambling
The Digital Services Act (DSA), effective from February 17, 2024, provides a regulatory framework aimed at enhancing transparency, accountability, and safety across various online services. Though not specifically targeting the online gambling sector, the DSA encompasses a wide range of digital services, making it imperative for gambling operators to assess their obligations under this regulation.
Scope of Digital Services Act
The DSA categorizes digital services broadly into intermediary services, hosting services, and online platforms. Online gambling operators frequently include community forums or interactive features, enabling users to share information publicly. These interactive elements potentially categorize gambling operators as “online platforms” under the DSA, triggering several compliance obligations.
However, there is an exemption within the DSA for services considered minor and purely ancillary to the principal service. For online gambling operators, features such as forums or chat rooms accessible exclusively to registered users and integrated fundamentally with the gaming service itself could fall under this exemption, thus potentially limiting their obligations under the DSA.
Key DSA Obligations for Online Gambling Operators
Should an online gambling operator’s community features not qualify for the ancillary exemption, several obligations under the DSA arise:
- Notice-and-Action Procedures: Operators must implement robust systems to promptly address user reports of illegal content.
- Transparency Reports: Regular publication of content moderation activities and outcomes is mandated.
- Advertising Transparency: Gambling operators must clearly disclose advertising practices, including advertiser identities and targeting parameters.
- Risk Management: Operators need to undertake risk assessments and implement mitigation measures, particularly if their online gambling services reach significant user numbers.
Based on the above, any features permitting public user interactions will necessitate adherence to strict moderation standards. Furthermore, gambling operators engaging in online targeted advertising must adopt transparent disclosure practices aligning with DSA guidelines.
Additionally, online gambling operators based outside the EU but providing services to users within the EU are also required to comply with the DSA. This includes appointing a legal representative within the EU, thereby ensuring accountability and facilitating compliance with DSA requirements.
Strategic Recommendations for Online Gambling Operators
Given the potential for stringent regulatory oversight, online gambling operators should proactively assess their services to determine their position under the DSA. Steps to compliance include:
- Clearly defining and potentially restricting interactive elements to ensure they are ancillary features, thus limiting exposure under the DSA.
- Developing comprehensive moderation and user-reporting frameworks to handle content swiftly and transparently.
- Implementing stringent advertising transparency measures to meet DSA obligations.
- Regularly conducting and documenting risk assessments, especially if operations scale to significant audience sizes.
Conclusion
The applicability of the DSA presents new regulatory challenges for the online gambling industry in the EU. Operators must carefully evaluate their service offerings, particularly interactive community features, to determine their specific compliance obligations. With clear strategies and careful planning, online gambling operators can effectively navigate the complexities introduced by the DSA, ensuring both regulatory compliance and sustainable operational growth.
On a similar topic, you can read the article “NIS 2 Gambling Obligations – What Changes for Operators and Suppliers“. Also, you can read DLA Piper’s Gambling Laws of the World guide.