French Court Applies Retroactive Penalty to Online Casino

Sports betting company Unibet became the first online casino to be subject to France's new rule applying fees to French-owned sporting events, a law which hasn't yet been formally introduced.

A French court has fined an online casino operator for breaking a law which has not even been formally adopted yet. Unibet is ordered to pay 1.79 million to Roland Garros for ownership rights to the French Open tennis tournament.

The new law was applied by the Paris Court of Appeals, hearing a case in which Unibet was contesting a decision to bar it from accepting bets on the tennis event. Not only did the appellate court support the lower ruling, but it doubled the amount due in damages as it considered the change in law since the case had begun.

The European Gaming and Betting Association spoke for Unibet after the decision, saying the company found it highly irregular that it would be subject to penalties under a law still being debated, and it would pursue alternatives beyond French law to the European Commission.

“We are surprised by this ruling which goes against all existing case law in France and in other European countries,” said the EGBA statement.

The French rule on sports betting has caused much controversy, particularly among foreign betting services saying the rule is another attempt by France to limit international competition and restrain trade.