Online gambling law and regulation in Greece

Notes

By way of background, online gambling (also including online betting) had always been totally banned in Greece by virtue of a decades-long blanket prohibition of any gambling activity other than those specifically authorized. Following the spread of the Internet, the supervisor was explicitly entrusted with enforcing the said prohibition in the area of online gambling (article 17(1) Law 3229/2004).

Greece went on to permit online gambling, for the first time, by Law 4002/2011, while local Internet users were already offered such services contrary to the pre-existing prohibition. The law of 2011 introduced a licensing system on the basis of public tenders. Despite the provision made by lawmakers no such public tender ever took place. Instead, online gambling was temporarily authorised on the basis of a transitory regime introduced by the same law of 2011. This regime allowed operators licensed at that time in any country of the European Economic Area (EEA) to continue offering their services in Greece, if they would voluntarily become (by the end of 2011) subject to retroactive taxation of their past profits (as of 2010). A total of 24 whitelisted operators were thereby allowed to offer online gambling activities in Greece.

Finally, after years of procrastination, Greece overhauled the licensing system concerning online gambling by Law 4635/2019 which amended the provisions of Law 4002/2011. The law of 2019 departs from the rationale of public tenders (never implemented in practice) and allows any interested parties to obtain fixed-term renewable licenses for the provision of online gambling. The new framework has been complemented by a series of regulatory decisions, issued by the Minister of Financial Affairs in August 2020.

In light of these developments, on 11 September 2020, the Hellenic Gaming Commission issued a public invitation to apply for online gambling licenses. This is an open-ended process accessible not only to prospective new entrants, but also to the operators under the hitherto transitory regime. The latter are eventually obliged to cease business if they fail to apply in a timely manner and obtain a license.

Interested parties may apply for:

• a license for online betting (Type 1); and / or
• a license for other online games of chance (Type 2).

Type 1 license has a renewable term of 7 years and covers any kind of real events; fantasy sports; virtual events on the basis of a random number generator (RNG); and other events which lend themselves for betting. In order to obtain a type 1 license, applicants must, among other conditions, pay fees of EUR 3 million. The same amount is due in respect of a license renewal.

Type 2 license has a renewable term of 7 years and covers casino games as well as poker and its variants, both if they are played with the help of a dealer (live) without an RNG and if they are based on an RNG. Furthermore, it covers poker and its variants whether carried out on a peer-to-peer basis or as poker cash games or as poker tournaments. In order to obtain a type 2 license, applicants must, among other conditions, pay fees of EUR 2 million. The same amount is due in respect of a license renewal.

Please note that bet exchange sites are prohibited.

Provided that all the conditions set out in the said regulations are met (such as regarding technical and financial standing, fit and proper assessment, submission of performance guarantee, and payment of license fees), a license is granted by the Hellenic Gaming Commission within two months after receipt of the respective application.

Regardless of the policy options finally made, the new framework lays the foundation for a solid online gambling market in Greece and seems to ensure effective supervisory oversight which was lacking under the fragmentary approach of the transitory regime. What is more, its actual implementation is expected to put an end to the legal uncertainty around online gambling, a problem which was exacerbated by a series of recent decisions by the Council of the State, i.e. the supreme administrative Court of Greece, in particular: decision no. 1333/2019 which found that the formerly State-owned monopoly operator (OPAP S.A.) lacked an appropriate legal basis for the provision of online gaming; and decision no. 1335/2019 which found that the transitory regime of the 24 whitelisted operators under Law 4002/2011 was unconstitutional, but was later overturned by decision no. 1160/2020 of the Plenary.  

Last updated: April 2023