The growing popularity of online casinos across Europe has revolutionized how local regulators handle the industry, as well as the services iGaming companies can offer their clients.
A notable example of how regulations have changed over the years and how new rules govern online casinos is Greece and the Hellenic Gaming Commission, which represents a drastic shift in gambling regulatory strategy for the country.
Historically stringent in its oversight, the HGC has shifted its focus on Know Your Client (KYC) policies to deter potential illicit activity, rather than stifling the growth of new casinos in Greece. This changing attitude has opened Greece to both local and international operators, delivering added value to local punters.
How Greece Regulates Online Casinos
The Hellenic Gaming Commission, formerly known as OPAP, historically maintained strict control over the online gambling industry in Greece. However, as casinos and sports betting firms became more sophisticated, the regulatory environment in the country had to adapt or fall behind.
The European Union played an important role in making this transition possible, increasingly liberalizing the Greek iGaming industry from 2011.
Law 4002/2011 legalized online gambling in the country, with strict regulations and licensing, allowing suppliers to offer sports betting, poker, and casino games to Greek citizens. The legislation basically transformed the policy of gambling and generated a new revenue source for Greece in terms of taxing gross gaming revenue of casinos and sportsbooks operating in the country.
KYC procedures are another part of the overall regulatory requirements upheld by the HGC, required for every iGaming brand based in Greece.
Greek Casino Regulations and KYC Policy
For those familiar with the iGaming industry, Greece’s regulatory approaches may still seem somewhat outdated, especially given the prevalence of casinos that require no verification process to access.
Between modern casinos, Know Your Client, or KYC procedures, are some of the strictest requirements to be fulfilled. Online gambling is often a hotbed of illicit transactions and money laundering, which is why iGaming platforms are expected to comply with KYC best practices, which include gathering basic information regarding each player, such as their full name, ID, place of residence, source of funds, etc.
KYC is a standard requirement for most casinos in Greece, as well as globally, which ensures that the gaming process is conducted fairly and securely.
HGC requirements are in line with the global best practices for KYC, which also means that experienced punters are unlikely to encounter much difficulty when verifying their accounts at a Greek casino/sportsbook.
Challenges for New Online Casinos
While the HGC has harmonized its regulatory practices with much of the EU, new casinos still face some challenges when it comes to entering the market and establishing their presence in Greece.
The main issue and point of contention between Greek casinos and the HGC is the rate of taxation, which is higher than in most jurisdictions across the EU.
For instance, gross gaming revenue, or GGR, is taxed at rates ranging from 35% to 40%, depending on the game. Furthermore, a 2% contribution to responsible gaming initiatives is also levied, which adds to the overall rate of taxation for iGaming companies in the country.
In comparison, Estonia and Malta charge a 5% tax on GGR, which is significantly lower than the rates required to operate in Greece.
For this reason, the number of new casinos and sportsbooks opening in Greece is considerably lower than that of Malta, Cyprus, and Estonia, which are three of the leading jurisdictions for iGaming companies in the EU.
New Opportunities and Emerging Trends
As the broader iGaming market continues to grow and improve in efficiency, new opportunities arise for both Greek regulators and iGaming brands operating in the country.
For example, digital verification technology has been improving rapidly, reducing the probability of illicit transactions and sketchy accounts.
These kinds of software solutions, once installed, enhance the security features of Greek casinos and their image outside the borders of the country too.
Additionally, connecting KYC data to responsible gambling initiatives, betting limits, and self-exclusion schemes offers a safer and more responsible gaming experience for everyone.
Some tax reductions for iGaming companies could actually increase the overall tax revenue from GGR taxation, while giving companies more freedom to invest in improved software solutions and offer more attractive terms to their Greek clients.
What the Future Holds for Greek Online Casinos
In order for the Greek iGaming market to remain competitive and bring in more tax revenues for the HGC in the process, several adjustments are likely to be required.
Reducing the GGR tax on local operators could help free up some cash for these companies to invest in improving their end product, while having the incentive to domicile in Greece for the long run. This can boost tax revenues derived from modest rates, while allowing Greece to compete with the likes of Cyprus, Malta, and Estonia for the top destination for iGaming in the EU.
