French Gambling Policies Defy European Commission
7th November, 2007
French delegates and European Commission authorities met early on this week in Brussels to attempt to negotiate past the France’s protectionist policies on gambling, which currently conflict with EU principles of free passage of trade and services. According to the Reuters news agency, it became clear that further talks were necessary after a preliminary meeting which put France near a position of going to EU top court for restricting competition in sports betting.
French Budget Minister Eric Woerth and European Affairs Minister Jean-Pierre Jouyet met with the Commission’s internal market chief, Charlie McCreevy. McCreevy had previously sent a final warning to France for banning private betting firms, threatening then with the European Court of Justice. All present parties agreed to discuss opening up the market in France, which is currently dominated by the state-controlled lottery Francaise des Jeux and the horse betting firm PMU. More meetings will take place in February and March to find a solution to end the legal dispute before France takes over the EU presidency in June.
According to Woerth, France is beginning to loosen up their policy. “We indicated to Mr. McCreevy France was ready to gradually open up its gaming market,” he told reporters. Any opening of the market, however, would have to meet a list of French demands, including tax conditions and powers to combat money laundering and unlicensed online betting sites.
The French also noted that there will be no more instances of arrest of online gambling executives such as Peter Nylander, the Unibet CEO who was arrested last week in Amsterdam on a French warrant, and then released on bail. The warrant was justified by complaint from the French gambling monopolies that Unibet defied 19th century laws protecting state-owned monopolies.
The European Commission harshly criticised the French over the arrest and EC spokesman Oliver Drewes stated after the Brussels meeting, “The French ministers also confirmed there will be no new kinds of complaints issued similar to the one that led to the arrest of Mr. Nylander.”
Sigrid Ligne, secretary general of the European Gaming and Betting Association, is not quite as patient with the French in this situation. She recognized, “Negotiations have been taking place since June. Promises have been made, but no concrete solutions nor concessions have been made...”
France is expected to have their policies slacken soon, otherwise they could face high court rulings that will most likely not fall in their favour.
