New French Online Casino Rules Still Have Old Flaws

France is pushing its amended regulations for online casinos and Internet gambling through the legislature, but critics say EU violations from the original proposal have not been corrected.

France's National Assembly passed the country's proposed regulations governing online casinos and Internet gambling yesterday, but gaming industry representatives say EU complaints have not been addressed by the amended rules. The European Commission returned France's original measure in June with a list of changes needed to bring the law into compliance with EU policy.

Several points of contention were identified in the EC report, including provisions basically requiring online casino operators to have a physical and financial presence in France. While adjustments were made, new amendments seem designed to block other foreign competitors.

Among the new rules inserted in the online gambling bill is a declaration that French licensing will not be available to operators located in tax havens. This would include such major companies as PartyGaming, Ladbrokes, and bwin, all of which have established bases in Gibraltar to avoid onerous taxes.

Lottery operators, locked into basing in countries which tax them heavily, applauded the French move.

“We do not need companies that place making profit over social and public order concerns and leave it to national governments across Europe to deal with the social costs,” said the president of European Lotteries, Friedrich Stickler.

But representatives of the European Gaming and Betting Association said the old issues have not been corrected, while new rules have increased the unnecessary restrictions against EU-licensed online gambling competition.

The French Senate gets the bill next, while the EC must decide whether to pursue infringement penalties if the French do not further adjust their regulations.