Operators Scrambling for Position in French Market

On Tuesday this week, the French government voted into law long awaited online gambling regulations, opening their market to foreign operators.

The new regulations were prompted in part by the European Commission's insistence that France end their practice of protecting local gambling monopolies like PMU and FDJeux. Following a majority vote in favor of the new bill, 299 votes to 223, come June this year the door will be open to privately owned, foreign websites to offer bets on poker, soccer and horse racing to French players.

But participation will come at a steep cost with turnover taxes of 7.5 per cent for sports betting and 2 percent for poker, as well as extensive technical requirements licensees must adhere to.

The new law doesn't exactly have the glowing support of the online gambling fraternity. Remote Gambling Association CEO Clive Hawkswood had the following to say about it:

'Even if the European Commission, as guardian of the Treaties, feels that a licensing system is sufficient to satisfy EU rules, the French law makes a mockery of a supposed 'controlled opening'. Whether it is the hundred plus pages of technical rules, the false limitation on payouts to players, the ineffective blocking mechanisms or the introduction of an unsubstantiated sports right, this system is, unfortunately, seriously flawed and will make it difficult for any private sector company to be successful, especially in the area of sports betting'.

Despite the tough operating environment facing new licensees, it seems all the big names are positioning themselves for an aggressive market entry.

Ladbrokes announced a joint venture with Canal+, the pay-TV broadcaster, to create an online betting and gaming service that will give Ladbrokes access to Canal's 12.5 million subscribers. PartyGaming have done a deal with local monopoly operators Pari Mutuel Urbain (PMU) to provide PMU with access to their online poker product. While Bwin has announced intentions to launch a French language poker site.

Interesting times ahead in France indeed!