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France: Contemplating a controlled liberalisation

France: Contemplating a controlled liberalisation. Thibault Verbiest, Partner, Ulys www.ulys.net www.gaminglaw.eu. France: before. 2 State controlled monopolies (FDJ and PMU) Blanket prohibition of online gaming and betting with an exception for the two monopolies.

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France: Contemplating a controlled liberalisation

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  1. France: Contemplating a controlled liberalisation Thibault Verbiest, Partner, Ulys www.ulys.net www.gaminglaw.eu

  2. France: before • 2 State controlled monopolies (FDJ and PMU) • Blanket prohibition of online gaming and betting with an exception for the two monopolies. • The monopolies operate an aggressive strategy with marketing which even targets children. • Recent law (March 2007) reinforcing criminal sanctions against private gaming operators. • Arrest of Peter Nylander ( October 2007)

  3. France:after • July 2007: PMU vs. Zeturf:Groundbreaking decision from the French supreme court. • Is the barrier to free provision of services justified and necessary? • Questions proportionality of the blanket prohibition. Courts must check if the MS of origin protects consumers. • October 2007: France starts to negotiate with the European Commission after 2nd stage of infringement procedure is launched. • March 2008: Durieux report published. • Soon: the French government is going to announce the opening of online gaming market.

  4. France: now Durieux report: towards a “controlled opening” • Mission: reflect on how to reorganise the gambling sector and its regulatory framework. • Recommendations: • No mutual recognition of other EU operators. • Opening of the market for all games except slot machines. (too addictive) • Setting up a licensing system. • Maintaining the current taxation system

  5. France: what to expect? • Prosecutions: in principle no more prosecutions of EU gambling operators. • Lobbying from operators to obtain a transitory regime before the new legislation is passed in the second half of 2009. • Payment Ban Decree (delinquency Act): • EU Commission said no since it is contrary to EC Treaty…to be continued. • July 2008: Presidency of the EU • Soon: Official announcement+calendar

  6. Thank you for your attention!Thibault Verbiest, partner, ULYSthibault.verbiest@ulys.netwww.gaminglaw.eu

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