EC seeks changes in French draft law

The reply questioned the legality, under EU law, of the French government’s intention to impose regulations as part of their licensing system, if EU based private online gambling operators are already under similar regulations in other jurisdictions.

French Budget Minister Eric Woerth said his ministry will supply additional information on the way in which the future regulator created by the law will verify criteria already applied to operators with licenses to operate in other EU member states. Woerth also said the ministry will supply analysis regarding the necessity of imposing a limit on the maximum proportion of bets paid back to players.

According to the Remote Gambling Association (RGA), the Commission also questioned the limitation on pay-outs for online gambling operators, including potentially raising the point that no evidence has been offered on the link between pay-out and the propensity to gamble, and that the actual policy is severely contradicted by the French policy on minimum payouts for slot machines.

The Association further stated that it expects amendment in the French Government’s law in order to take into account the failings of the draft bill in terms of EU law. “We understand the French government’s desire to control their gambling markets, but the measures contemplated in the draft bill were not just about EU law, they also failed to create a viable market,” said Clive Hawkswood, chief executive of the RGA.