Ensuring Compliance and Player Safety: Future Updates on Child Safety, Research, and Data Transfers

_{EU data privacy reforms signal greater regulatory scrutiny for international online casinos. (Image: Associated Press / Alamy)}

The European Commission recently published its second review of the General Data Protection Regulation (GDPR), emphasizing the importance of regularly evaluating processes to ensure compliance and effectiveness. 

For operators such as online casinos, the review highlights key areas that require attention and adaptation across data handling, enforcement, and player protection.

Key Focus Areas for Casinos Include:

Guidance for SMEs and Knowledge Dissemination

Casinos, especially smaller operators or those involved in affiliate or ancillary services, should seek clear, scalable guidance. Providing actionable direction can help ensure compliance without creating unnecessary burdens.

The UK's ICO has launched initiatives, such as free training programs and an experimentation regime, to help SMEs navigate data protection requirements.

Uniform Interpretation and Enforcement

Variability across EU member states in interpreting GDPR provisions can lead to legal uncertainty, affecting casinos that operate in multiple jurisdictions. The review highlights the need for clear and consistent enforcement to support smooth cross-border operations.

Cooperation and Enforcement Insights

The review found increasing cooperation between Data Protection Authorities (DPAs), but effectiveness remains uncertain.

• Many enforcement actions are procedural rather than substantive and are often challenged in court. Casino operators should be prepared for detailed investigations.
• Germany leads in using corrective measures over fines, while fines across the EU total approximately €4.2 billion. Ireland and Luxembourg have imposed the highest penalties—significant for multinational casino groups operating in these jurisdictions.
• Most DPAs have increased staffing and budgets, though resource constraints persist. This may affect the thoroughness of compliance checks.

Data Transfers and International Data Flows

The review notes continued reliance on Standard Contractual Clauses (SCCs), which are especially relevant for casinos operating internationally, including online platforms with users outside the EU.

• New SCCs are being developed for importers under the GDPR. These updates could impact casino companies engaged in cross-border data sharing.
• Other transfer mechanisms are rarely used due to lengthy approval processes. Casinos should monitor regulatory developments to maintain compliance when transferring data outside the EU.

Other Notable Points for Casinos

• The risk-based approach in GDPR guidance remains unclear. Casinos handling large volumes of sensitive data, such as player identification and payment information, should establish clear, risk-based protection strategies.
• Some authorities lack proactive engagement with industry stakeholders, which can hinder compliance efforts.
• Court rulings from the Court of Justice of the European Union (CJEU) are increasingly clarifying GDPR interpretations. Casino operators should stay informed on these developments.
• Public awareness of data rights is growing, but understanding remains limited. The right of access is the most frequently exercised, while objections are less common—likely due to limited understanding.
• Guidance on children’s safety in online gambling and on the use of data in scientific research remains pending.
• Codes of conduct have seen limited success. Casinos should consider adopting or developing industry-specific codes to demonstrate compliance.
• There is a shortage of qualified Data Protection Officers (DPOs) with industry-specific expertise. Casinos should invest in specialized training and adopt clear standards.

International and Cross-Border Enforcement

The EU is working to strengthen enforcement cooperation across borders, which is critical for international online casinos and gambling platforms. Efforts are underway to expand cooperation with non-EU countries and create enforcement agreements that uphold GDPR standards globally.

The review indicates that while the GDPR framework is functioning relatively well, ongoing challenges remain. These include inconsistent interpretation, resource limitations, and the need for clearer, sector-specific guidance. 

For the casino industry, this underscores the importance of proactive compliance, ongoing staff training, and participation in industry guidance initiatives to navigate the evolving legal landscape.