Key points:
- The EU Fitness Check highlights growing concerns about the overlap between gambling and gaming mechanics
- Manipulative advertising practices in online gambling are coming under scrutiny
- Future digital fairness legislation may impact the gambling and lottery sector
The European Commission's recent Fitness Check on EU consumer law in the digital realm has highlighted several key issues relevant to the gambling and lottery sector.
This review, which examined three major consumer protection directives, aims to ensure these laws remain effective in an increasingly digital marketplace.
One significant finding is the growing overlap between gambling and gaming, particularly through features like loot boxes. These mechanics, which mimic gambling behaviours, pose potential risks to younger players.
While some EU member states have taken steps to regulate or ban loot boxes for minors, approaches vary across the EU, highlighting a need for more consistent policies.
The review also raised concerns about manipulative advertising practices on gambling websites and apps. Tactics such as falsely claiming low stock or high demand were identified as problematic.
Additionally, the use of hidden influencer marketing for gambling products was flagged as a concern, with some consumer organisations calling for its prohibition, especially when directed at children.
The Fitness Check also touched on the uncertainty surrounding the application of new digital rules, such as the Digital Services Act and Digital Markets Act, to gambling services. This ambiguity could have implications for how online gambling platforms operate and are regulated in the future.
While the Fitness Check does not recommend immediate legislative changes, it sets the stage for future initiatives, including the anticipated Digital Fairness Act. This upcoming legislation is expected to address unethical practices like dark patterns, addictive designs and manipulative marketing in digital spaces.
