Opposition Taking Shape against French Liberalization

France’s imminent online gambling liberalization has not been without its critics, but it now appears more concrete steps are being taken to challenge some of the measures proposed in the new legislation.

At the beginning of May, Karin Riis-Jørgensen, a Liberale Parti member of European Parliament from Denmark, tabled another in a series of questions to the European Commission relating to the opening up of protected gaming markets throughout Europe.

Ms. Riis-Jørgensen, it should be noted, has been a staunch advocate of liberalisation and a keen critic of the presence of monopolies.

“I still wonder why the Commission has not yet referred to the European Court of Justice (ECJ) infringement proceedings against EU countries whose gaming monopolies breach the EC treaty," she declared in a European Voice article titled "The Must Take Action against Gaming Monopolies" (November 2008). "These countries are Denmark, Finland, France, Hungary, the Netherlands, Sweden and Greece."

Despite the French government's protestations to the contrary, its move to liberalize is very much a result of this pressure.

However, France has no plans to open up its retail betting market. Outlets for horserace betting will continue to be controlled by the monopoly operator Pari Mutuel Urbain, and sports betting outlets by Française des Jeux.

This in itself will leave the government open to a possible challenge from operators like Stanleybet International of Liverpool, whose actions against Italy for its protectionist measures led to the landmark European Gambelli and Placanica decisions.

A Stanleybet spokesman told IGamingNews the company is presently considering its strategies for France.

Although many in the industry are concerned that the proposed liberalization covers online betting and gaming, exclusively, Ms. Riis-Jørgensen's questions earlier this month referred specifically to a provision in the new legislation addressing a “sports betting right."

This right would preserve the integrity of French sporting competitions by requiring sports betting operators to enter into compulsory financial agreements with French sport federations.

Ms. Riis-Jørgensen asked of the commission: “What evidence (statistical or other) has been provided by the French authorities to support the need for this measure? In what way does such a right safeguard 'Sports integrity?' ”

The French government notified the commission and EU Member States on March 8 of its draft online gambling legislation.

The commission is now in the process of analysing the details. It has not finalised its position yet, but will do so before the expiry of the standstill period on June 8.

In the meantime there may be further challenges from Stanley (which, at present, is declining to give further comment) or other operators, as well as from pressure groups like the European Gaming and Betting Association.

Whether these actions will delay implementation of the law -- which has yet to be ratified by the French Parliament -- remains to be seen.