French government proposes wholesale reform of French gambling market
FDJ to receive legal exclusivity on lottery gaming, while ARJEL would be disbanded under new order
The French ministry of public action and accounts has today presented an order providing for the wholesale reform of the French gambling industry.
Under the new order, the current French regulatory structure, which is separated by vertical will be replaced with a new national gambling authority designed to oversee all gambling in France.
In the current system, land-based casinos are regulated by the Ministry of the Interior while retail betting on horseracing and sports betting and lottery games fall under the control of the French budget ministry.
The regulation of online gambling, including online sports betting horse racing, poker is currently under the supervision of the national authority for the regulation of online games (ARJEL).
However, under the proposed changes, the new national gambling authority would takeover full regulatory responsibility from all these entities. It would also take over the licensing process for online gambling and betting operators in the French market, replacing ARJEL.
The new entity will receive increased supervisory powers, which will include the ability to force operators to withdraw adverts it deems to be inciting excessive gambling.
The regulator will be charged with enforcing five regulatory objectives, including preventing excessive gambling, protecting minors, ensuring integrity, preventing fraud and “ensuring a balance” between the different gambling strands.
In addition, the order includes a precise legal statement confirming exclusivity on lottery-based gaming for French national lottery operator Francais Des Jeux, something which has not been formally recognised in French law.
As part of the exclusivity, FDJ will be required to allow state representative or commissioner to join its board of directors, representing the French government at board meetings. This representative will have powers to block decisions at board level which are deemed to be inconsistent with the company objectives.
The French government will also retain the right to block executive appointments and has final approval on decisions by any shareholder to increase their shareholding beyond 10%. Under the proposals FDJ’s day-to-day activities will be subject to a series of regulatory standards and a specific agreement detailing company obligations concerning the exploitation of exclusive games.
This proposal will be passed to the French parliament for debate and potential amendment before being passed for signature by the French president into law.