The relationship between betting markets and Greek regulators has long been complex and riddled with controversies. This comes at a stark contrast to the major sporting culture present in the country, where fanbases are extremely passionate about their teams, and the country lives and breathes football and basketball, in particular.
Therefore, wagering has always been popular among Greek sports fans, while the government enforced stringent and inefficient regulations to govern the country’s betting market.
The heavy-handed control of the industry has backfired considerably for Greek authorities, damaging the reputation of its regulatory bodies and adversely affecting the country’s public finances, which are derived from licensing permits and taxes on gross gaming revenue.
How Overregulation Undercuts the Greek Betting Market
As we have already stated, sports betting is quite popular among the Greek public, which puts the country in a precarious position, trying to tame the betting market while trying not to scare major betting brands away from the country entirely.
OPAP has been the primary regulatory body overseeing the betting market in Greece and has been a major contributor to the country’s public finances for years.
However, OPAP’s history is also mired with inefficiencies and a slow and restrictive approach to gambling regulation. This issue became more evident as digital-first sportsbooks and casinos started entering the European market in the 2010s.
It is safe to assume that if OPAP’s outdated licensing procedures and bureaucratic approach had not been reformed, the likes of Casino18, NeaCasinoEllada, and other major Greek brands would likely not have achieved much success and recognition.
Constrained by outdated systems burdened with regulatory excess, Greek punters found themselves unable to properly take advantage of improved odds and a much more convenient digital betting experience.
The Role of the EU in Greek Gambling Regulation
Greece’s overly restrictive stance towards gambling regulation stood in stark contrast to the more liberal approach of the rest of the EU, which welcomed online betting brands as a novel source of tax revenue for its member states.
However, the reluctance of the Greek government also meant that the EU had to step in and challenge Greece’s stringent gambling policies and the monopoly of the OPAP in the country.
Due to pressure from the European Union, Greece started issuing temporary iGaming licenses in 2011. This shift also coincided with the post-2008 bailout years, which explains why the EU was pressuring Greece to open up new avenues for tax revenue and stabilize the country’s public finances.
The regulatory landscape at the time was one of the most restrictive in all of Europe, with a 35% tax on gross gaming revenue, restrictive licensing practices from OPAP, and severe restrictions on gambling advertisements, which limited brand visibility for companies operating in Greece.
Signs of a Changing Regulatory Climate
Since the 2013 OPAP privatization, the Greek regulatory climate with regard to the iGaming industry has liberalized considerably. The country started licensing both local and international sportsbooks and casinos to operate in the country, with the likes of OnlineCasinoCyprus being among the most notable success stories brought about by changing regulatory handling of Greece’s betting market.
It is also worth noting that OPAP’s outdated systems from the early 2010s have also been significantly updated, which has played a major role in bringing the Greek betting industry into the mainstream, as nearly 50% of the gambling activity in the country was done through unlicensed platforms, which also made it trickier for the tax authorities to collect taxes on their GGR.
Lessons From Other Countries
Other countries in Europe have been much more flexible when it comes to updating their rules and regulations governing gambling providers. For instance, the United Kingdom and Denmark have established clear licensing frameworks, balanced tax rates on gross gaming revenue, and robust consumer protections, which have allowed for active iGaming industries and a considerable windfall for the local economies.
The Danish approach to regulating gambling companies is an especially stark comparison and an example of how Greek regulators could have approached the advent of online betting by setting tax rates at levels that still attract operators, while also deterring unlicensed providers.
