The Kingdom of Belgium is a sovereign state situated in Western Europe, with a population of 11.4 million and a gross domestic product of over 529 billion as of 2019. As one of the nations that founded the European Union, Belgium offers a high standard of living and has a well-developed economy, driven predominantly by the service and trade sectors.
Gambling has a rich heritage in the country. Historians can trace its roots on Belgian soil as far back as the 14th century. Belgium also launched one of Europe’s earliest national lotteries, whose beginnings can be traced back to the 15th century. This rich heritage is not reflected in the number of land-based gambling halls the country hosts.
Although gambling is legal in Belgium, the country has only nine brick-and-mortar casinos, with the largest located in the seafront resort of Knokke-Heist. Remote gambling is also legal and regulated in Belgium, although few online casinos are licensed by the local regulator.
Licenses are not readily granted, so Belgian gamblers have limited options for the time being. This causes some of them to turn to gambling sites that offer their services on the Belgian market without proper authorization.
Laws Governing Land-Based Gambling in Belgium
The land-based gambling sector in Belgium is governed by the Act of May 7, 1999, on games of chance, betting, gaming establishments, and the protection of players, known as Wet van 7 mei 1999 op de kansspelen, de weddenschappen, de kansspelinrichtingen en de bescherming van de spelers.
As becomes apparent from the name, this piece of legislation only covers betting activities and games whose outcomes are based on chance. Promotional contests where no element of chance is involved, such as sweepstakes and games without financial gains, do not fall within the scope of the legislation.
The provisions of this bill explicitly state that it is illegal to provide chance games that offer monetary gains without first obtaining a license from the Belgian Gaming Commission, or Kansspelcommissie in Dutch (also spoken in some parts of Belgium). The same goes for knowingly promoting and participating in unauthorized gambling services. A limited number of land-based casinos can receive licenses from the Belgian regulator for the time being.
Another piece of legislation that applies to the gambling sector in Belgium is Book VI of the Code of Economic Law on Consumer Protection and Market Practices (officially Boek VI van het Wetboek Economisch Recht betreffende Consumentenbescherming en Marktpraktijken). Some of the provisions in this legislation outline certain consumer-protection rules that gambling operators are expected to follow.
Lottery games in the country are subject to the monopoly of the Belgian National Lottery under the provisions of the Lotteries Law of December 31, 1851. Exceptions are made only for scratch cards that award cash prizes and tombolas. However, the latter must be organized exclusively for charitable causes to fall under the exemption.
The sanctions for organizing illegal gaming activities are also outlined in Belgium’s Penal Code, or Strafwetboek. Several articles deal with this subject, more specifically Articles 301 through 304. According to Article 302, those who are caught operating illegal lotteries will be punished with imprisonment ranging from eight days to three months. The violators will also have to pay fines of €50 to €3,000.
Online Gambling Regulations in Belgium
The provision of online gambling services is legal in Belgium as long as operators obtain permits from the Kansspelcommissie, the Belgian Gaming Commission. Remote gambling was banned in the country until it was legalized in 2010 when the Act of May 7, 1999 was amended by the Law of January 10, 2010. The full amended text of the legislation can be found here.
Legal Status of Online Casinos
Measures against Unauthorized Gambling Operators
Licensing Procedure
Applying for a License
Loss Restrictions
License applications are reviewed by the Belgian Gaming Commission. The regulator sends the application form to interested parties, although Type F license applications can be completed electronically. Individual applicants must reside in a member state of the European Union.
Holders of Types A and B permits must register as commercial companies in Belgium’s company register. According to Article 29 of the Belgian gambling legislation, the total number of Type A permits for land-based casinos is capped at 9.
These gambling halls may operate only within specific Belgian municipalities: Knokke-Heist, Namen, Spa, Oostende, Middelkerke, Dinant, Chaudfontaine, Blankenberge, and the Brussels Capital Region. The permits allow the operation of gaming machines and table games. To protect players, hourly losses are limited, and customers must not lose more than €70 per hour.
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The maximum hourly loss for amusement arcades must not exceed €25. Additionally, these venues must not be located near hospitals, churches, prisons, or schools. The number of physical sportsbooks in the country cannot exceed 34.Taxes on Gambling Operators
Gambling taxes fall within the scope of Wetboek van de met de inkomstenbelastingen gelijkgestelde belastingen, which is the Belgian Code of Taxes assimilated to the income tax. More specifically, operators are taxed under the provisions outlined in Articles 43 through 93. All gambling-related taxation goes to the federal coffers; the only exception is the region of Flanders, which gets to keep the taxes collected on its territory.
Operators are taxed at a relatively mild rate of 15%, which applies to the overall amounts they collect from bets. One exception is the region of Wallonia, where the tax rate is lower at just 11%. Bets on pigeon races, along with the national lottery, are not taxed, provided that the participants themselves place the bets.
These percentages apply to land-based gambling. Remote gaming operators have to pay a lower tax rate of 11% on their gross gaming revenue, defined as the difference between the overall amounts wagered and the amounts paid out as winnings. As for Belgian players, they are not taxed on gains generated at physical or remote casinos. Gambling debts are also not enforceable in the country.
Legal Gambling Age and Protection of Vulnerable Players
Licensed terrestrial and online gambling operators must ensure only persons of legal gambling age have access to their products and services. Belgian law prohibits anyone under the age of 21 from entering gambling venues or places where gaming arcades and slots are available. Individuals under the age of 18 are prohibited from placing wagers.
Another important condition related to social responsibility requires the gambling areas in land-based casinos to be separated from other spaces, such as bars and restaurants. The activities on the gaming floor should not be visible to people outside.
Various protective measures are in place to prevent gambling addiction as well as to help those who are already addicted. Responsible gambling is embraced in the country, with operators being required to promote it in prominent places.
Relatives or problem gamblers themselves are entitled to request to be denied access to gambling services, a practice otherwise known as self-exclusion. The country also has an official registry of excluded persons who are blacklisted from gambling participation. It is known as the Excluded Persons Information System, or EPIS, and contained over 360,000 individuals as of 2019.
It is also important to mention that certain groups of people are prohibited from gambling even if they are not excluded for addiction. Such is the case with magistrates, bailiffs, policemen, and notaries. Those in trouble also have access to SOS GAMBLING, a free helpline for addicted players.
It is available around the clock; if you have a gambling problem and are in Belgium, simply dial 0800 35 777. Another option is to visit the official website Gok Hulp, where you will find free assessment tests, an anonymous program for gambling addicts, and free guidance on how to quit or reduce your betting.
Rules on Advertising
Belgium’s authorities are very strict when it comes to the advertising of gambling products and services. Various restrictions are in place on gambling-related advertisements. One key example is online gambling commercials on television, which are strictly prohibited in Belgium. This applies to both Type A and Type B products, namely casino games and arcades.
The measures were enforced after the Belgian regulator noted that betting ads and commercials were “omnipresent” during soccer games. According to the regulatory authority, data analysis indicated that this led to an increase in wagering activities during the playoffs of soccer games. Apparently, many viewers were prompted to place bets upon seeing such commercials on television.
The regulator was worried viewers might assume sports and betting are closely linked, which, in turn, might lead to the normalization of gambling. These concerns resulted in the prohibition of gambling commercials during the broadcasts of sporting events.
Additionally, the Royal Decree of October 2018 that enforced the restriction states that advertisements should not contain any drawings or marketing techniques that might appeal to children and minors in general.
However, advertising is not the only practice operators should refrain from. According to Article 5 of the same Royal Decree, licensed operators should not advertise free games or bonuses except on their own domains. Players should not be encouraged by the ads to gamble with promises of refunds or other bonuses.
Article 11 of the Decree states that the maximum bonus a Belgian customer can receive is €275 per month. The restrictions came into force in the spring of 2020. Before that, the Belgian Council of State said these restrictions were practically irrelevant since offering bonuses to local gamblers is illegal in the first place. This caused gambling operators in the country to deactivate offers such as free spins, welcome bonuses, and free bets as of March 2020.
Gambling Regulators in Belgium
All terrestrial and virtual gambling activities in Belgium are strictly overseen and controlled by the local regulatory body, Kansspelcommissie, or the Belgian Gaming Commission. The latter is tasked with multiple responsibilities, including approving and issuing licenses to gambling operators. Of course, the regulatory body closely monitors the operations of its licensees. In case of any violations, the regulator has the mandate to suspend or even revoke the violators’ permits.
As you probably know, Belgium is a multilingual nation, which is why the regulator’s official website is available in English, German, Dutch, and French. There you can learn about all the preventive measures the Commission has adopted to protect vulnerable players and minors from experiencing the harmful effects of gambling.
The regulator has launched a special campaign, called BLUFF!, for this purpose. It comprises a five-episode film series that targets young audiences aged 14 to 18 and warns them about the dangers of persistent gambling.
Another mandate of the Belgian Gaming Commission is to keep watch for unregulated operators that target players from the local market without its authorization. The regulator never relaxes its vigilance against such companies, constantly expanding its blacklist of banned domains.
The Commission also warns players not to engage in gambling on such websites because this might lead to criminal prosecution. Other than that, the regulatory body is required to report to Belgium’s Federal Public Service for Justice. The Commission is headed by Ms. Magali Clavie, who is also a magistrate.
Conclusion
Belgium is home to a stringently regulated gambling market. Local players lack a broad enough choice of online casinos because of a requirement that stipulates remote operators must be linked to a land-based gambling hall located in the country. This partially benefits local gamblers because it allows for higher levels of protection.
Yet, it also causes many of them to turn to unauthorized foreign websites. Perhaps, if the local regulator re-evaluates its requirement for a connection between physical and remote casinos, the online sector might open to more competition in the future.