European Commission’s detailed opinion on the French bill regarding the opening of the remote gambling market
The European Commission has urged France to review the bill regarding the opening of the French remote gambling market.
Following the notification of the French bill regarding the opening of the remote gambling market, the European Commission rendered a detailed opinion on the 8 of June, 2009.
The French authorities are urged to clarify and amend some of the provisions of the bill in order to ensure the bill’s compatibility with European law.
* The first objection relates to article 16 of the bill and the system put in place for issuing licences. According to the Commission, this rule restricts the freedom to provide services (Art 49 EC Treaty). To be compatible with European law the French authorities are requested to clarify to which extend they will take into account the requirements of the legal system under which the operator is already licensed (country of origin).
* The second objection pertains to Article 52 of the bill which provides for an obligation for all licensed operators to obtain consent from the operating right owner of the sport event. According to the Commission, such a requirement could constitute a restriction to the freedom to provide services, as the betting offer would become less attractive.
* The third remark questions the justification of article 8 of the bill: French Government has to prove the necessity of this restriction. According to this provision, a maximum payback ratio is foreseen, whereby the Commission considers this might constitute an infringement to the freedom to provide services. In this respect, the French authorities are urged to adduce evidence concerning the link between the rate of return and fight against addiction.
* The last objection is related to article 39 of the bill which states for an obligation to have a fiscal representative established in France. This might constitute a restriction to the freedom to provide services, even despite the argumentation given by the French Government according to which this disposition is meant to ensure an effective fiscal supervision. Such an argumentation is not accepted (see Commission v. France judgement C-334/02) considering that such an obligation is disproportionate and can be replaced by a less restrictive measure.
This opinion obliges France to postpone the adoption of the law for one additional month. The new deadline ends on the 8 of July.
If the French Government does not modify the bill by the 8 of July, 2009 or ignores the EC opinion, it takes the risk that the Commission decides to launch an infringement procedure.
