The French law suit: a blessing in disguise?

THE RECENT decision of French casino group Barriere to take legal action against licensed online operators for “illegal competition” is not a surprise – and neither will it be a surprise to see more online operators challenging the current and proposed French legislation.

In fact, Barriere’s allegations may indeed backfire, as they only highlight the inequality and discriminatory tendencies of French gambling regulations.

This may only be the tip of the iceberg and Barriere’s decision to launch an online poker product with monopoly Francaise des Jeux while licensed online operators have to stay outside the French market is indeed a liason dangereuse, and illustrates the real intentions of the proposed French law, which are without a doubt highly protectionist and in breach of European Competition law.

The operators’ arguments are well founded, and France will have difficulties prosecuting licensed and legally operating European operators, other than banning them from the French market.

With the unattractiveness of and the high tax rates proposed by the French legislation, many operators may indeed have lost interest in applying for a French licence in any event.

It is becoming very clear that France has no real intention to liberalise its online gambling market without retaining a disproportionate advantage for its (ex) monopolies and existing French operators.

It is only a matter of time before the new French gambling law will be challenged in European Courts.

Barriere’s action may even be a blessing in disguise, as it is a first warning of things to come and the French Government would be well advised to work constructively with online gambling operators and within the laws of the European Union.

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