Commission drops action against France after gambling law change

The Commission said that it will no longer pursue the country over the issue now that the provision of online gambling services is no longer restricted to two French companies. The Commission is still investigating Denmark, Finland, Greece, Hungary, the Netherlands and Sweden over similar concerns.

The Commission received a complaint in 2005 that France unlawfully restricted gambling companies. Two companies – Pari Mutuel Urbain (PMU) for horse racing and the Français de Jeux for all other sports betting – were the only companies allowed to operate in the market.

European Union law allows countries to restrict gambling activities for reasons of social policy and to stop money laundering or criminal activity. But the Commission said that France was engaging in more severe restrictions than were necessary.

"While EU law permits Member States to restrict the offering of gambling services in the public interest, for example to prevent gambling addiction or organised crime, such restrictions must be coherent with the Member State's own behaviour in offering the very same services via certain operators," said a Commission statement.

"Any measures taken by Member States to restrict the market have to be necessary, proportionate and non-discriminatory. Acting upon complaints, the Commission had taken the view that France's restrictions on foreign service providers at that time were disproportionate," it said.

The Commission said that a law passed in France in May, though, has solved the problem.

"The new online gambling law has introduced a national licensing system that allows for the cross border provision of sports betting on a non-discriminatory basis while providing strict controls on gaming," it said.

"With its new law, France has opened its online gambling market to operators from other EU member states on the basis of a non-discriminatory licensing process. This has allowed a broader choice of online gambling services for sports betting," it said.

"The new law has also legalised online poker in France. These services are authorised and supervised by a new specific on-line gambling regulator (ARJEL). European gambling operators now have the possibility to apply for French licences and offer their services in France. Nevertheless, gambling continues to be safeguarded in the general interest in order to protect vulnerable consumers and to prevent gambling addiction as well as criminal activities," said the Commission.

A dispute on similar grounds with Italy was also resolved this year, the Commission said.