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Europe Daily Bulletin No. 10109
Contents Publication in full By article 19 / 31
GENERAL NEWS / (eu) eu/gaming

Opening up of French market to online betting is a laboratory to be examined with a magnifying glass by other member states

Brussels, 30/03/2010 (Agence Europe) - The opening up of the French online sports betting market (and poker), which is expected to be up and running by the time of the football World Cup in South Africa, is being followed very closely by other European Union member states. It will allow for the current situation to be regulated and where only 5% of the online market is in the hands of the traditional French bookmaker, the remainder is controlled by companies that have until now been illegal in France. It also aims to organise competition between all operators that obtain licences. This liberalisation means that France now hopes that the Commission will close its infringement procedures against the country opened in October 2006 under the impetus of European Commissioner Charlie McCreevy. It now joins the club of member states that have opened up their national markets to online gaming: Austria; Italy and the United Kingdom. In Denmark, the liberalisation process has also been launched and does not appear less restrictive in the eyes of private operators than that pursued by the French authorities. Several other member states, such as Poland, are looking at how to tackle the challenges raised by the Internet and which has threatened the national gaming monopolies and is jeopardising the public finances, already suffering the effects of the economic crisis. Their decision to open the market or maintain their monopoly will be decided after close examination of the developments in neighbouring countries and any initiative in the sense of opening up the market does not necessarily mean that the action by other member states will be copied.

At the beginning of February, the Commissioner for the Internal Market, Michel Barnier, announced to MEPs that he would present a Green Paper in the autumn, which would launch the debate on a European response in the gaming sector, particularly for online sports betting (EUROPE 10076). The French bookmakers' president in France, Christophe Blanchard-Dignac welcomed this “appeal for dialogue” positively and said that it was necessary to, “establish an inventory so that we know what has to be done”. According to Blanchard-Dignac, two ways ahead are not possible, “the internal market for gaming”, which he clearly opposes because it is neither good for the consumer or the industry and “absolute subsidiarity”, where member states have exclusive competency and the Commission is left suspecting them of seeking to protect their monopolies by invoking consumer protection. Mr Blanchard-Dignac said that there is an alternative, that of “active subsidiarity”, where gambling remains a national competency and action in this domain converges towards the same objectives. Should there still be an agreement on these objectives? Once these objectives are defined and accepted, European initiatives will be possible if they introduce genuine added value. According to the head of the French gaming industry, “if Europe intervenes, it is for better regulation and not less regulation”. He considers that three questions could be treated effectively at a Community level: submitting all operators to European rules on combating money laundering; banning gambling access to minors and tackling illegal gambling. On this final point, Mr Blanchard-Dignac considers any operator “outside the EU”, particularly in tax havens and which “violate the law of member states” and do not respect the conditions required for obtaining a licence, should be deemed illegal.

At the Council, national experts are continuing their work on gaming. After having examined socio-economic problems linked to gambling and gaming availability, they are now focusing on illegal gambling. The Spanish presidency has submitted a specific questionnaire to delegations and certain European operators' organisations in view of presenting a progress report at the end of May to the Competitiveness Council. The future Belgian presidency will take up the baton in the second half of this year. (M.B.)

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