50 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2023 In recent years, two big challenges have permanently occupied the agenda of both policy makers and the larger society: the fast growing and changing digital environment and the future of our climate. While these issues a ect everyone in di erent ways, and the response by governments vary around the world, we need to prepare for the impacts that the ambitious approach and actions of the European Union. e a ects will vary across economic sectors. Our focus will be the impact that the EU digital and climate agenda is likely to have on the lottery sector in Europe. For many years, the EU’s legal framework for the digital economy centered around the protection of personal data. en in 2020, the European Commission released its core policy designed to shape Europe’s digital future. Since then, the EU's digital strategy is designed to: promote the responsible use of data (personal and industrial), invest in digital skills for all Europeans, protect people from cyber threats (hacking, ransomware, identity theft), and ensure that Arti cial Intelligence is developed in ways that respect people’s rights, earns their trust (avoiding dark patterns), and minimizes unintended consequences. e Digital Services Act (DSA), a key center-piece of legislation, will impact all varieties of online services including the online gambling business as it provides amongst others for measures to counter illegal goods, services or content online, such as a mechanism for users to ag such content and for platforms to cooperate with “trusted aggers”. A second key center-piece of legislation, the Digital Market Act (DMA), requires Big Tech, the so-called Gate Keepers, to respect a new legal framework that guarantees the development of a stronger innovative environment for start-ups and new tech solutions. e DMA focuses on the competitive environment and the potential exclusionary or ant-competitive practices of the very large online platforms and very large online search engines. At the end of April, the European Commission published the list of global companies expected to respond to the de nitions and requirements of the DMA. e EU digital policy is addressing substantially more questions as well. More than 15 new regulations have been adopted addressing a wide variety of issues. including the Platform Regulation, the Chip Act , the Data Governance Act, the Data act, the Geo-blocking act , the AI Act and the Cyber Security act, to name only a few. Suppliers of digital connected devices shall also be obliged to design “cyber-safe” hard and software. Data governance and usage, including machine generated data and the use of AI, become subject to a more transparent and risk-based legal structure. On the other side of the spectrum, we nd the European ambitious GREEN DEAL translated into a comprehensive “FIT FOR 55” policy approach. Various environmental and climate policy documents and regulations are designed to implement amongst others the Paris Agreement and reduce the emission of GHG. ose policies are combined with the new ESGs and, even more recently, the Corporate Sustainability Responsibility Directive and Corporate Sustainability Due Diligence rules. By the summer of 2023, the European Commission will have adopted various implementing rules, the so-called 'European Sustainability Reporting Standards' or ESRS based upon the drafts suggested by European Financial Reporting Advisory Group (EFRAG). e implementation of ESRS standards will represent a massive investment – not only for companies, but also for universities and auditors. All those new rules and measures will impact the lottery sector in a serious manner. Lotteries may need to review their procurement processes to bring on board the new cybersecurity rules, design policies for managing their player data, do better research on identifying and preventing addiction, and clarify the methods of accessing third-party data. e ght against illegal operators can also be enhanced through the various tools and procedures made available through the new digital regulations. e process of complying with these new EU sustainability rules will oblige larger lotteries to implement the new ESG/CSRD rules and enlarge the scope of the existing CSR rules and certi cation procedures. By Philippe Vlaemminck Managing partner of VLAEMMINCK.Law, Brussels Lotteries mobilize with their stakeholders to be part of the solution: Digitization and Climate Change Continued on page 49
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