1. International Gaming Exhibition 30-31st May 2007 Lake Como After Placanica: the case of France Thibault Verbiest Partner at Ulys Law Firm (Paris - Brussels) www.ulys.netwww.ulys.net – www.gaminglaw.euwww.gaminglaw.eu Thibault.Verbiest@ulys.net

2. Placanica Teachings: principles Regulations restricting free circulation of services must: 1.Be justified by imperative overriding general interest (consumer protection, prevention of fraud…) 2.Be proportionate and necessary Member States must have a systematic and coherent gaming policy.

3. Placanica teachings: consequences THEREFORE: Complete exclusion of some firms from the licensing tender process Criminal penalties applied for failure to complete an administrative formality when it was made impossible to obtain it by MS… IS NOT PROPORTIONATE NOR NECESSARY!

4. Situation in France 2 State controlled monopolies (FDJ and PMU) Blanket prohibition of online gaming and betting with an exception for the two monopolies. Expansive gaming policy of the 2 monopolies which marketing strategy even targets children.

5. Situation in France Recent law (March 2007) reinforcing criminal sanctions measures against private gaming operators.  Fines against “illegal” online gaming operators to be doubled from €30,000 to €60,000 for sports betting and lotteries operators; from €45,000 and €100,000 to €90,000 and €200,000 for horse betting operators.  Fines against “advertisers”: €30,000 + possibility for courts to multiply this fine by four times the amount invested in the advertising expenses.  ISPs must inform clearly subscribers of the gambling sites which are considered by Home Affairs Ministry as “inappropriate” (“blacklisted”) under sanction of up to a year imprisonment + €75,000 fine.  Banks must stop the flow of funds from individuals or “blacklisted” companies which organise betting or gaming activities.

6. Situation in France Therefore in light of the Placanica judgement: French gaming policy is  Neither coherent  Nor systematic  Nor proportionate

7. Some Reactions Under the pressure from the European Commission: France adopted a new decree prohibiting from 1st July 2007 the sale of any lottery or betting tickets to children under the age of 18. Will it be enough to save France from receiving a reasoned opinion?

8. Next steps 27 June 2007: the Commission will decide whether they will send a reasoned opinion to France concerning its gaming policy. From this decision will depend the issue of several ongoing trials before French courts. Next two years: the ECJ will answer to two requests of preliminary rulings from the Oporto Tribunal (Portugal) and from the Administrative Court of Giessen (Germany)

9. Thank you for your attention Time for questions!