EU Gambling Regulations: Comprehensive Glossary

This glossary provides clear definitions of technical terms, regulatory concepts, and industry acronyms encountered throughout EU gambling regulations. Understanding these terms is essential for navigating the complex legal landscape across 27 member states.

Regulatory and Compliance Terms

AML (Anti-Money Laundering)

Regulations and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income through gambling operations. EU member states enforce AML directives requiring operators to conduct customer due diligence, monitor transactions, and report suspicious activity. The new AMLA (Anti-Money Laundering Authority), operational since July 2025, provides EU-level supervision with authority to impose fines up to €10 million or 10% of annual turnover.

AMLA (Anti-Money Laundering Authority)

EU-level regulatory body established in Frankfurt that commenced operations July 1, 2025. AMLA directly supervises high-risk financial institutions including gambling operators, coordinates with national authorities on cross-border cases, and has enforcement powers including significant fines for AML violations.

CDD (Customer Due Diligence)

Process of verifying customer identity and assessing risk as part of KYC requirements. For gambling operators in the EU, CDD must be conducted at the €2,000 threshold for single or linked transactions, involving collection of identification documents, verification of information accuracy, and assessment of customer risk profile.

GGR (Gross Gaming Revenue)

Total amount wagered by players minus winnings paid out, before operating costs. GGR represents the primary metric for calculating gambling taxes in most EU jurisdictions. Tax rates on GGR vary significantly across countries, from approximately 15% in some markets to 35% or higher in countries like Greece and Italy.

KYC (Know Your Customer)

Identity verification procedures required by gambling operators to confirm customer age, identity, and location before allowing real-money gambling. KYC processes typically involve submitting government-issued identification, proof of address, and potentially additional verification steps. This is mandated across all EU gambling markets to prevent underage gambling and support AML compliance.

Licensing Authority

Government agency or regulatory body responsible for issuing gambling licenses, enforcing compliance, and supervising operators within a jurisdiction. Examples include Germany's GGL (Gemeinsame Glücksspielbehörde), Spain's DGOJ, Netherlands' KSA, France's ANJ, and Malta's MGA. Each EU member state maintains its own licensing authority with sovereign regulatory powers.

RNG (Random Number Generator)

Algorithm or hardware device that generates unpredictable sequences of numbers used to determine gambling outcomes (card deals, slot spins, dice rolls). Licensed operators must use certified RNGs tested by independent laboratories to ensure fairness. RNG certification is a universal requirement across EU gambling jurisdictions.

RTP (Return to Player)

Theoretical percentage of wagered money that a gambling game returns to players over time. For example, a slot machine with 96% RTP theoretically returns €96 for every €100 wagered over the long term. EU regulations increasingly require transparent RTP disclosure to players. Higher RTP indicates better player odds, though individual sessions can vary significantly due to variance.

Responsible Gambling Terms

Deposit Limit

Maximum amount a player can deposit into their gambling account over a specified period (daily, weekly, monthly). Many EU jurisdictions mandate deposit limits as a responsible gambling measure. Germany, for instance, imposes mandatory monthly deposit limits across all licensed operators, while other countries require operators to offer voluntary limit-setting tools.

Reality Check

Mandatory notification shown to players at regular intervals (typically every 60-90 minutes) displaying time elapsed and money wagered/won during the current session. Reality checks aim to interrupt continuous play and promote conscious decision-making. Required by regulators in many EU markets including Spain, Denmark, and the Netherlands.

Self-Exclusion

Process by which individuals voluntarily ban themselves from gambling for a specified period. Many EU countries operate national self-exclusion registers that block excluded individuals across all licensed operators, both online and land-based. Examples include Germany's OASIS, Netherlands' Cruks, Sweden's Spelpaus, Denmark's ROFUS, and Slovakia's RVO. Self-exclusion periods typically range from 6 months to permanent, and breaching exclusions can result in account closure and winnings forfeiture.

Time-Out / Cooling-Off Period

Temporary self-imposed break from gambling, typically shorter than full self-exclusion (24 hours to 30 days). During time-outs, players cannot access their accounts or gamble, but accounts remain active. This tool helps players regain control without committing to long-term exclusion.

Market and Licensing Models

Concession

Exclusive or limited license to operate specific gambling activities, often for a fixed term and substantial upfront fee. Italy's 2025 online gambling licensing regime uses a concession model with nine-year terms costing €7 million per license—the highest in the EU. Concessions typically involve revenue-sharing agreements with the state.

Licensed Competitive Market

Regulatory model allowing multiple private operators to compete after obtaining licenses from national authorities. Countries like Germany, Spain, Denmark, and Malta employ this approach, featuring open application processes, independent regulatory oversight, and compliance requirements. Represents the most common model across the EU.

Monopoly Model

Regulatory approach where state-owned entities hold exclusive rights to operate gambling services, prohibiting private operators. Finland's Veikkaus and Norway's state operators exemplify this model. Poland maintains a monopoly for online casino games through state-run Totalizator Sportowy. Finland announced plans in March 2025 to transition from monopoly to licensing, though implementation remains pending.

Partial Liberalization

Hybrid regulatory approach where some gambling verticals are open to licensed private operators while others remain prohibited or monopolized. France permits licensed sports betting, horse racing, and poker but prohibits online casino games. Cyprus allows sports betting but bans online casinos. This creates vertically segmented markets with different rules per product type.

Gambling Products and Verticals

Esports Betting

Wagering on outcomes of competitive video gaming matches (Counter-Strike 2, League of Legends, Dota 2, etc.). Where online sports betting is licensed in EU countries, esports betting through those same operators generally falls under the same legal framework. Distinct from skin gambling, which uses virtual items as currency and often operates without licenses.

Live Dealer Games

Online casino games (blackjack, roulette, baccarat) streamed in real-time with human dealers, combining online convenience with land-based casino experience. Subject to same licensing requirements as other online casino games—legal in countries permitting online casinos, prohibited where online casinos are banned (like France and Cyprus).

Loot Boxes

Randomized reward mechanisms in video games where players spend money for chances to receive random virtual items. Belgium and Netherlands classify certain loot boxes as illegal gambling when items have transferable value. EU Parliament has proposed classifying loot boxes under digital asset laws requiring licensing. The gambling-like nature of loot boxes, particularly regarding youth exposure, drives ongoing regulatory scrutiny.

Skin Gambling

Using in-game cosmetic items (primarily CS2 weapon skins) as currency for gambling on third-party platforms. Exists in legal gray zone across EU, with most platforms operating without gambling licenses by arguing they deal in virtual items not traditional currency. However, skins have real-world market value and convertibility, leading regulators to increasingly classify skin gambling as unlicensed gambling. Major concerns include underage access and lack of consumer protections. See our dedicated CS2 skin gambling guide.

Payment and Financial Terms

Payment Blocking

Enforcement mechanism where countries prevent financial transactions to unlicensed gambling operators through banking system controls. Germany, Netherlands, and Lithuania actively block payments to unauthorized platforms. This creates significant operational barriers for unlicensed operators and protects players from unregulated gambling.

Turnover

Total amount of money wagered by players, regardless of outcomes. Some jurisdictions calculate gambling taxes on turnover rather than GGR. Turnover is always higher than GGR since it includes funds returned to players as winnings.

Enforcement and Compliance

Domain Blocking

Technical measure requiring internet service providers (ISPs) to block access to websites of unlicensed gambling operators. Used in conjunction with payment blocking as enforcement against unauthorized operators in markets including Germany, Italy, and Netherlands.

Geo-blocking / Geo-location

Technology verifying player physical location to ensure they're accessing gambling services from jurisdictions where the operator holds a license. Required by regulators across EU to prevent cross-border offering without appropriate authorizations. Players must be physically located within licensed territory, not just residents.

Age Requirements Across the EU

Minimum Gambling Age

Legal age required to participate in gambling activities, varying by EU country:

• 18 years: Most EU countries including Germany, Spain, Netherlands, France, Denmark, Italy
• 21 years: Estonia, Latvia, and certain US-influenced jurisdictions
• 23 years: Greece (highest minimum age in EU)

All licensed operators must implement robust age verification through KYC processes before allowing real-money gambling. Underage gambling prevention is a universal priority across EU regulatory frameworks.

Related Resources

For practical applications of these terms within specific regulatory contexts, explore:

• EU Gambling Regulations Overview – How national laws and EU-level frameworks interact
• Country-by-Country Index – Detailed regulatory profiles for all 27 EU member states
• CS2 & Skin Gambling Guide – Esports betting and virtual item gambling regulations

Last Updated: January 2025