France Gambling Regulation

Law 2010-476

All gambling activities in France were subject to a state monopoly that began in 1836 and lasted for nearly a century. The situation finally changed in 2010, thanks to a European initiative that compelled the country to open its interactive gambling market to competition, ending the monopolies of La Française des Jeux (FDJ, which regulated all forms of legal gambling) and Pari Mutuel Urbain (PMU, the regulator for horse race wagering).

This shift led to the introduction of Law 2010-476 (also referred to as the French Gambling Act), which passed on May 12, 2010, making certain forms of online gambling legal as long as the services are offered under a valid local license. Sports betting, horse race betting, and online poker (tournaments and cash games) gained legal status in the country.

Article 15 of Law 2010-476 outlines the conditions online gambling companies must meet to gain approval from the regulatory authorities. It requires an operator to provide all necessary information about its owner’s identity, the company’s structure, the addresses of its directors, and the address where the company is registered.

Another condition stipulates that operators seeking approval from the French regulator must provide proof of a trust, insurance, or escrow account that guarantees the repayment of all money owed to local online gamblers.

Under Article 16, operators are also obliged to supply information regarding their methods of operation, the services they intend to offer, and the characteristics of their betting platforms and software. Companies must grant the authorized representatives of ARJEL access to their data center.

Player Security and Fraud Prevention

Law 2010-746 outlines the measures licensed gambling operators must adopt to protect French bettors and prevent fraudulent activities. When a customer’s account is closed, a licensed operator is required to store the real-money balance (if available) for six years. If the customer fails to withdraw the balance within that period, the funds are claimed by the state.

Additionally, operators must carry out thorough identification checks to verify the identity, age, and address of every newly registered player. This requirement also protects minors from exposure to gambling-related activities. The same applies to the payment methods players use, which must be verified to prevent fraud and money laundering.

Licensed operators may process payments only through banking solutions provided by payment service providers within the European Economic Area (EEA) or the European Union (EU). This measure helps prevent fraud and tax evasion.

Companies applying for licenses must detail the technology they intend to use to protect registrants’ financial and personal data, in line with Law 78-17 of January 6, 1978.

Responsible Gambling

Regarding responsible gambling, locally licensed operators must close accounts at the request of French customers, a practice known as self-exclusion. In addition to protecting minors, operators must take all necessary precautions to prevent compulsive gamblers from accessing their services.

This rule applies whether the player has self-excluded voluntarily for up to three years or has been involuntarily banned by a Criminal Court decision. In this context, French players can voluntarily request to be added to the blacklist of the French Ministry of the Interior. Some individuals are added to this list against their will following a court order.

The accounts of individuals whose names are on the blacklist must be terminated immediately by gambling companies. Under Article 29 of Law 2010-476, a telephone line must be available to problem gamblers who need assistance. Operators must do everything within their means to warn customers about the dangers of pathological gambling and protect them from addiction.

Penalization

As for penalization, French players do not need to fear prosecution by local authorities. There are no known cases of consumers being fined, arrested, or imprisoned for gambling at unregulated offshore websites that lack local permits.

Online operators, however, are prosecuted either for violating their licensing conditions or for serving locals without valid licenses. Even if companies host their servers and offices abroad, serving players without authorization is still illegal under French law.

A company that holds a valid permit from another EU member state (Malta, for example) is still prohibited from serving locals without the authorization of ARJEL. Penalties vary according to the severity of the offense.

The most common measure taken by French authorities is to block access to unlicensed gaming operations in line with Article 61 of Law 2010-746. Violators first receive formal notifications from the French regulator. More severe measures follow if they continue to transgress.

In rare cases, the authorities initiate criminal prosecution against transgressors. Several unauthorized offshore companies have been prosecuted and fined, although we will refrain from listing their names. It suffices to say four foreign operators were sanctioned in 2013 and 2014 with fines ranging from €15,000 to €300,000.

French authorities may also restrict financial flows to unauthorized gambling sites in line with Article L563-2 of France’s Monetary and Financial Code. That said, this measure has so far proved inefficient, at least according to a 2013 report issued by the French regulator.

Legal Status of Chance Games

Poker is excluded from the ban on casino games because, to win, players rely mostly on skill rather than chance. The country still prohibits online games of chance. Video slots, blackjack, baccarat, roulette, and instant-win games all fall into this category. The definition of chance games is broad but is generally described as follows:

“All operations offered to the public, whatsoever they are called, intended to engender the hope of a gain which would be due, even partially, to chance, and for which a financial sacrifice is required from the participants by the operator.” (Article L320-1 of the Interior Security Code)

Consumer Protection and Fraud Prevention

With that in mind, the regulator is tasked with safeguarding French gamblers (especially those in risk groups), preserving the integrity of the online gambling sector through constant supervision, issuing licenses, and ensuring operators’ full compliance with local laws.

ARJEL also focuses on fraud prevention and combats unauthorized gambling. It can request ISPs to restrict access to such sites, and it may ask search engine operators to stop referencing illegal gambling operators. Additionally, the regulator must ensure that underage individuals are not exposed to any form of gambling activity.

Licensing Procedure and Conditions

To gain ARJEL approval, applicants must provide the regulator with all necessary information about their management, liabilities, and legal structure. Companies must also be based in an EU member state or within the European Economic Area (EEA).

The regulator may decline to issue licenses to operators whose owners, CEOs, or management members have been convicted of serious criminal offenses within the last ten years. ARJEL’s website hosts a registry where bettors can view all online gambling operators that currently hold licenses.

ARJEL licenses are valid for five years, after which operators can apply for renewal. Regarding taxation, locally authorized sportsbooks and online lottery operators must pay taxes based on their turnover, which is the difference between the wagers accepted and the profits earned.

Licensing Fees and Taxation

Each approved operator must also pay initial licensing fees that vary with the number of license applications: €5,000 for one application, €8,000 for two, and €10,000 for three. Applicants must also contribute annual fees of up to €40,000 for three applications.

The tax rates in France are relatively high, which discourages many gambling companies from applying for local licenses. The percentages, which match those for land-based operators, are as follows: 33.7% of the gross revenue of online sportsbooks, 1.8% of all wagers made by online poker players, and 5.3% of wagers placed on horse racing.

ARJEL Passes the Baton to ANJ

It is important to note that ARJEL will soon transfer its oversight duties to a newly formed regulatory body, L’autorité nationale des jeux, or ANJ. ANJ is expected to take over in the spring of 2020 and will serve as a single regulatory authority controlling and licensing all forms of gambling in the country, both land-based and online.

ARJEL and Player Persecution

ARJEL is a particularly selective regulator and, as such, has granted licenses to only a few trustworthy gambling operators. French residents currently have a choice of 13 authorized gambling sites, all of which appear in ARJEL’s registry.

French gamblers can still join offshore gambling sites that hold permits from jurisdictions such as Curacao, Panama, or Costa Rica. We advise against this and recommend that bettors take their real-money play to French-licensed companies to avoid potential problems.

French citizens are not prosecuted or fined for gambling on unauthorized sites. However, ARJEL emphasizes that players who choose such operators are no longer under the regulator’s protection and risk becoming victims of fraud.