France: Contemplating a controlled liberalisation Thibault Verbiest, Partner, Ulys

France: before 2 State controlled monopolies (FDJ and PMU) Blanket prohibition of online gaming and betting with an exception for the two monopolies. The monopolies operate an aggressive strategy with marketing which even targets children. Recent law (March 2007) reinforcing criminal sanctions against private gaming operators. Arrest of Peter Nylander ( October 2007)

France:after July 2007: PMU vs. Zeturf: Groundbreaking decision from the French supreme court.  Is the barrier to free provision of services justified and necessary ?  Questions proportionality of the blanket prohibition. Courts must check if the MS of origin protects consumers. October 2007: France starts to negotiate with the European Commission after 2 nd stage of infringement procedure is launched. March 2008: Durieux report published. Soon: the French government is going to announce the opening of online gaming market.

France: now Durieux report: towards a “controlled opening” Mission: reflect on how to reorganise the gambling sector and its regulatory framework. Recommendations:  No mutual recognition of other EU operators.  Opening of the market for all games except slot machines. (too addictive)  Setting up a licensing system.  Maintaining the current taxation system

France: what to expect? Prosecutions: in principle no more prosecutions of EU gambling operators. Lobbying from operators to obtain a transitory regime before the new legislation is passed in the second half of Payment Ban Decree (delinquency Act):  EU Commission said no since it is contrary to EC Treaty…to be continued. July 2008: Presidency of the EU Soon: Official announcement+calendar

Thank you for your attention! Thibault Verbiest, partner, ULYS