1/ The opening of the French market for online games. Chaire Sorbonne-ICSS

Transcription

1 1 1/ The opening of the French market for online games

2 The objectives of the law on online games 2 To reduce the share of illegal gambling and regulate a market actually opened. To better protect consumers against the risk of addiction to gambling, including minors. To improve and enforce mechanisms to combat fraud, money laundering, corruption in sport and the financing of terrorism. To reply to the infringement proceedings launched by the European Commission. To maintain the level of public revenues from the gambling sector and prevent destabilization of the sectors concerned.

3 The types of games concerned by the opening of the French market : Only on the internet. 3 The monopolies (non remote) are preserved. Three types of online games allowed: Sports betting (tote and fixed odds). Horse racing betting. Games circle (for now poker). Types of online games prohibited: Online casinos Odds on horse betting Betting exchange Spread betting

4 A relatively high tax 4 Sports betting (hard and online) Horse betting (hard and online) Poker (online) State tax 5,7% 5,7% 1,8% Social security tax 1,8% 1,8% 0,2% Total tax 7,5% 7,5% 2% Back to industry Sport 1,3% in ,5% in ,8% from 2012 Horse industry 8% Total taxation and returns to industry 8,8% in % in ,3% from ,5% 2%

5 French Specific constraints (1/2) 5 Maximum payout at 85 %. To apply for a license in France: The registered office must be in the UE. The seat and the equipment can not be in a tax haven. The operator must provide the name of a manager with an address in France. Anti-fraud / laundering / gambling: A registration procedure very accurate. One account per player to collect his winnings. Mechanisms of restraint and self-exclusion.

6 French Specific constraints (2/2) 6 Prevention of conflicts of interest: Employees operators cannot play. The sports movement and the horse industry have rules to ensure that stakeholders cannot play. Transmission of sponsorship contracts to ARJEL. Statement to ARJEL if an operator is involved in a sports organizations which organizes bets. A gambling operator cannot control an event on which it offers bets. Conversely, event organizers cannot control an betting operator. Illegal gambling operators incur a criminal sanction. Obligation to have a website ". fr. Archiving on a hardware support located in France of all data on the player.

7 The Legislative Process 7 The law was enacted on 12 May 2010, after two years of debate (Act No ). A Regulatory Authority of Online Games (ARJEL) was created simultaneously. The opening took place on June 9, 2010 for sports betting (two days before the World Cup football).

8 8 2/ The right to bet (Article 63 of the law on online games)

9 THE RIGHT TO BET: A REGULATORY INNOVATION 9 Code of Sport: sports federations and sports events organizers are owners of the exploitation rights of the sports competitions they organize (including broadcast rights). The exploitation right is defined in the first paragraph of Article L includes the right to consent to the organization of bets on sporting events or competitions.

10 RIGHT TO BET AND MARKETING As part of a consultation process: No discriminatory. Open to all betting operators licensed by ARJEL. Do not subject of separate lots (to be defined). 10 Based on specifications (sent by the sports federation to the operator on request) that: Precise timing and rules of the consultation, including the price (expressed as a percentage of bets and taking into account the costs to fight against fraud). Specifies the object (competitions) of the consultation. Sets the duration of the right of exploitation. Specifies the "ethical" measures that the federation intends to put in place to preserve the integrity of competitions. Stipulates obligations (information, transparency) to be respected by the operator to maintain the integrity of sport.

11 RIGHT TO BET AND MARKETING 11 The right to organize bets granted by a federation is the subject of a contract. This contract must be sent to the ARJEL prior to signature. ARJEL decides within 15 days. An sports events organizer may mandate the sports federation to sign the contract.