The Gaming Business Has a Future

Annette Kok – President of the European Gaming and Amusement Federation

Annette Kok has more than 20 years of experience in the gaming and the entertainment industry. Before taking the position of a President of the trade association representing the gaming and entertainment industry in the Netherlands VAN Dutch Gaming Machine Organization, she was successively a Board member of JVH gaming BV (the biggest private company in the world in this sector), and Errel Industries (a leading manufacturer of gaming equipment in the Netherlands). Since May 2008 she has been a President of EUROMAT - the European Gaming and Amusement Federation.

Ms. Kok, you have represented EUROMAT- the European Gaming and Amusement Federation – as President since May 2008. Would you please present a brief outline of the main EUROMAT goals and activities to the Bulgarian audience?

Ms. Kok, you have represented EUROMAT- the European Gaming and Amusement Federation – as President since May 2008. Would you please present a brief outline of the main EUROMAT goals and activities to the Bulgarian audience?

EUROMAT is the European trade association representing the entire gaming and amusement device industry before the institutions of the European Union and its Member State governments. EUROMAT was established 30 years ago with the aim of ensuring that our sector (manufacturers, distributors and operators of gaming machines) had a voice in Brussels and actively participated in the political debate at European level. EUROMAT has not only been able to raise the sector’s voice in Europe, but also to shape the debate around gambling regulation in Europe.

Additionally, EUROMAT:

• Instigates dialogue with the European Union and other pan-European bodies. It hopes to use its position and membership to stimulate debate and awareness.
• Monitors and influences the European regulations on legal, commercial and technical aspects of the business to guarantee the best possible future for the industry.
• Gives one voice to its members on commercial and legislative matters affecting their business and makes known the views of its members in the debate surrounding these issues.
• Defends the interests of the industry by providing continued and accurate information on the gaming sector to the citizens, the media and the national administrations.
• Supports all member associations in their efforts to adopt, promote and enforce the appropriate code of conduct for themselves and their associates.

EUROMAT now represents the gaming and amusement industry of 17 different European countries, including Bulgaria, which is represented by BTAMOGI, and is constantly expanding its membership base to represent the whole of the European sector.

Since its establishment in 1979 EUROMAT is actively helping in the creation of a positive image of the gaming industry in the European market. Will you kindly comment on your most successful projects concerning this matter?

There are several projects that contribute to our image. The yearly assembly of European gaming market figures, which we send to all EU policymakers and stakeholders in the sector across the world, is a perfect example. Our response to the French Presidency’s Questionnaire on gambling legislation across the EU last year helped the French Presidency enormously in drafting the final report. We are able to show that we are a mature industry that wants to co-operate with the EU institutions in a positive way.

Another example of how we boosted the image of our sector is the launch of the EUROMAT book “The Future of Gaming and Amusement in Europe” in 2006, which included a collection of essays analysing the impact of gambling policy not only on society but also on the European economy. This initiative was warmly welcomed by EU policymakers and industry representatives alike.

And, of course, meetings with MEPs and representatives of the European Commission over the years have been very productive. I have experienced a great level of appreciation from those MEPs and representatives of national governments within the Council of the EU with whom I have spoken recently.

Also, the presentations EUROMAT representatives have made all over Europe down through the years have shown national authorities, industry representatives and other stakeholders that we take our business very seriously. And, last but not least, our statements on Responsible Gambling contribute very much to our positive image. They attest that we are highly aware of the risks related to the abuse and misuse of our services and that we really do something about it.

There are presently associations from 17 countries who are members of EUROMAT. How does EUROMAT conduct practical dialogue with its members while bearing in mind the presence of so many different regulatory models in the gaming industry?

You are right; it is not an easy task. General discussions within EUROMAT concern matters of common interest to the gaming industry in all countries. However, EUROMAT does its best to make sure that, by respecting the differences in legislative models in place in different countries, the industry is appropriately regulated and provides great support to its member associations when necessary. That was the case in the Netherlands last year, in Romania and Poland the year before and it is now the case in Austria. Additionally, EUROMAT provides its members with a forum to exchange best practices and compare solutions to similar problems that may be occurring in other countries.

Recently, a harmonised common EU gaming regulation has been under consideration. Given the specific features of this business and also that each country member has its own national regulatory model, what do you think would be the best formula, so that harmonisation of legislation could be achieved and indeed can it be achieved at all?

Oh no, no harmonisation. It is exactly as you say. Each country has its own culture, its own peculiarities and that is why each Member State regulates gambling in its own way. We believe that this should continue to be the case and do not believe that harmonisation is feasible for our sector.

How do you define the modern gaming business regulations in Europe and to what extent will liberalisation of that regulation be possible in the future?

Modern gaming business regulations vary from country to country. In one country we see some kind of liberalisation, while other countries are seen to tighten up on their regulations. Because we provide a service that society demands, and we face a decrease in trade barriers between the member states, I think that in the end some kind of liberalisation will take place. But not complete liberalisation, because, as I said before, every country has its own culture regarding our business and therefore gaming should be regulated on national level. One of the discussions right now at the EU level is online gambling. What is EUROMAT’s opinion as to how online gaming should be regulated? Online gambling is a big threat to our business, particularly when it is unregulated. The main concern with Internet gambling is the lack of physical borders and consequently the lack of control or oversight.

From a purely consumers’ perspective, the best option would be a total prohibition of Internet gambling. The Internet is an easy distribution channel for existing games such as the ones we provide in our gaming arcades, however with a much lower threshold. There is basically no social restraint like in our landbased locations, so games can be accessed 24/7 without any limits in terms of stakes and prizes by virtually anyone regardless of age and other types of vulnerabilities. EUROMAT believes that unregulated online operators should not be allow to operate in an market where no specific regulation of such activity exists or if there is no regulatory parity between land-based and online operators.

Do you consider the EU would ever regulate online gambling (i.e. with a sectoral Directive), and if so when do you think this would be possible or likely?

That remains to be seen. I do not expect the EU to adopt a Directive on online gambling anytime soon. Where the EU is to consider legislative initiatives aimed at the online gambling sector, these should not, under any circumstances, result in attempts to regulate the offline gambling market at EU level.

Land-based gaming services are already strictly regulated at national and regional level in the EU, and given the specificities of the sector, particularly the lack of a cross-border element, this should remain the case.

Another priority for EUROMAT pertains to responsible gambling, that should become an inseparable part of the gaming business as a whole. What is EUROMAT going to do in that respect?

I mentioned our statements on Responsible Gambling before. EUROMAT continues to encourage its members to promote Responsible Gambling in their respective countries and to cooperate with national authorities with specific programmes on national level EUROMAT is currently working on a responsible gambling brochure, which it aims to launch by the end of 2009. This is one step forward to show how committed towards the promotion of responsible gambling practices EUROMAT is.

Bulgaria became a member of the EU in 2007 and the first Bulgarian gaming association is also became a member of EUROMAT in the same year. How do you view Bulgarian gambling legislation?

EUROMAT has developed a very special relationship with Bulgaria, thanks to its relationship with the gaming and amusement industry represented by BTAMOGI. Bulgaria recognized the value of association with Europe, and Europe has been responsive to Bulgaria almost from day 1 of Bulgarian membership of EUROMAT. EUROMAT found that the Bulgarian gaming legislation reflects a great balance between the interests of the industry, the consumers and the government. Of course, no legislation is perfect and I am sure that BTAMOGI and the industry representatives will have a lot to do to improve existing rules and regulations.

Last year in September Mr. Eduardo Antoja – a Honoured President of EUROMAT and Mr. Helmut Kafka – a Vice President of EUROMAT visited the First Balkan Entertainment and Gaming exhibition in Sofia and took part as speakers at Eastern European Gaming Summit. What are EUROMAT impressions of the event and the gaming market development in Bulgaria?

I believe Bulgaria is doing a fantastic job at promoting and improving the image of the sector in the region. I can proudly say that Bulgaria, represented by BTAMOGI has been one of the most active members of EUROMAT and the success of the 2008 Eastern European Gaming Summit is one of the most outstanding examples of the wonderful job done by the Bulgarian gaming industry. I have to say EUROMAT has been very supportive of this initiative and welcomed the opportunity to take part in it. I believe it is of utmost importance for the entire Balkan region to constantly interact with the industry on the rest of the Continent as it is absolutely crucial for the whole of Europe to constantly interact with the gaming business and regulators in the Balkan region. EUROMAT has committed itself to continue this process successfully and as a result more and more countries in the region will be integrated into EUROMAT, and such is the case with Serbia which was provisionally welcomed into EUROMAT during the last EXCOM meeting in January 2009.

Do you think that the world economic crisis has affected the gaming business in Europe?

Definitely yes. People are uncertain about their future, some fear they will loose their jobs and others actually do. Therefore, consumers are being much more careful in how their discretionary Euros are spent. Just to give you a concrete example, in the Netherlands we faced a huge decrease in turnover in recent months. I hear the same story being told not only by my colleagues from other countries such as Spain, Italy, the UK, but also by our colleagues across the Atlantic. We can honestly say that gambling is not recession proof. Additionally, it is more difficult to invest in new projects, because banks are increasingly more reluctant to finance them.

What are the on-going prospects and the challenges that the European gaming business will face?

The greatest challenge for the short term is to survive the credit crunch. I am sure there is a future for the amusement sector. As I said at the conference of the European Association of the Study of Gambling (EASG) last July in Slovenia, the service we provide is a service that society demands and this demand has always been there. Mankind not only longs for knowledge and does not find satisfaction only by working. Society did not just include homo sapiens and homo faber but also homo ludens.*

There are threats that the private sector faces every now and then. There seems to be a trend towards public imposition on our gaming services by governments via higher taxes- like in the Netherlands, via restrictions on the machines and extreme reduction in site permits like in Norway, or a total ban like in Greece, not to mention the sometimes too strict license conditions as it may be soon the case in Austria. As I mentioned before, the Internet is also a potential danger, as well as illegality. Last but not least, the limitations on innovation, due to the strict technical requirements our gaming machines have to fulfil.

* Homo faber is a Latin expression, created as a parallel to Homo sapiens and literally means “Man the Smith” or “Man the Maker” (of instruments, happiness and destiny). In anthropology Homo faber is the working person, in distinction to Homo ludens – the playing person.