Brussels, 30/03/2009 (Agence Europe) - Last week, France formally adopted a legislative proposal aiming to open up its national online gaming market. This will concern pari-mutuel betting games on horse racing, sporting bets and online poker. Operators wishing to offer their services in France must obtain a licence valid for five years from a new national regulatory authority. Illegally offering gambling will be subject to criminal sanctions and fines, with Paris reserving the right to block illegal websites and financial transactions between these sites and gamblers. Decrees will specify the framework for the opening-up of the market, which is scheduled for 2010.
The European Gaming and Betting Association (EGBA) has already voiced reservations about the French legislation. It is our impression that the French proposal will lead to the creation of a "local internet market cloistered off from the rest of Europe", its secretary general, Sigrid Ligné, told EUROPE. EGBA wonders whether the future French regulatory authority will take account of checks already carried out by other European jurisdictions, such as Gibraltar, Malta and the United Kingdom. Ms Signé regrets "the large number of exclusions" planned, such as "fixed odds" gambling on horse racing used in the United Kingdom and which "is very much appreciated by French and European consumers". She also stressed "the very high level of taxation" envisaged. The model selected includes taxation based on stakes and not on the gross product of the gambling (stakes less wins redistributed to the players). In France, all of stakes laid in horse racing will be taxed at 15.5%, whereas in the United Kingdom, where 93% of stakes are redistributed to gamblers, only 7% of stakes are subject to the same rate of taxation. "Is this worth it?", asked the EGBA representative, who went on to speak of the "technical and administrative" demands, such as the requirement for operators accredited in another member state to have their software certified in France, which may oblige service providers to review their offer.
The French authorities transmitted their latest proposal to the European Commission in early March, in the framework of the TRIS notification procedure. This procedure aims to prevent the requirement for infringement proceedings further to the adoption of national legislation. The Commission and the member states have until 8 June to submit any remarks concerning compatibility of the French bill with Community law. (M.B./transl.fl)