France’s online gambling laws challenged by recent court ruling
France’s historically protectionist policies regarding online gambling are challenged with the latest ruling by Frances’s top court, Cour de Cassation.
In a ruling handed down last month, the court overturned a decision that previously banned a Maltese competitor, Zeturf, from offering online betting associated with horse racing in France.
The decision will have immediate consequences concerning France’s historically aggressive measures against online gambling competitors and the EU’s pending legal action against France.
The European Court of Justice has since 2003 declared that gambling falls under EU’s articles to Freedom of Establishment and Freedom to Provide Services. A member state must allow other EU member states the same rights to provide online gaming services as they allow their state-owned monopolies. The European Commission therefore threatens legal action if France doesn’t change its laws.
In June of this year, the European Commission issued a “reasoned decision” against France, specifically citing France’s ban on online gambling advertising for all companies except France’s state-owned monopolies, the French Lottery, Francaise des Jeux and PMU. France has hit-here-to rejected the warning, stating that they will defend their policies in the EU’s highest court, if necessary.
It is in this light that the Cour de Cassation’s recent ruling makes it appear that France’s protectionist policies have become stuck between a rock and a hard place. However, a decision to open France to unlimited online gambling competition may not be around the corner.
An open French market is likely to come to existence only if embedded within a highly regulated framework. If France, for example, terminates state-run monopolies, the country can ban all online operations, and still be in compliance with national and EU laws. The EU’s goals related to online gaming are to promote fair competition where it exists only.
Alternatively, France may seek a narrower legal definition of what constitutes gambling services and competition. France could, for example, open up to the specific types of gambling allowed by their state monopolies only. Yet another option is for France to fight this battle, as they previously iterated they would.
Whichever path France decides to proceed on, the recent decisions by the Cour de Cassation and the EU force the country’s legal system to take action sooner, rather than later.
