Social Gaming in France Under Threat by Regulators – ARJEL

ARJEL the French  online gambling regulator is currently studying the possible regulation of social gaming in the French digital market. Social and skill gaming operators are bracing themselves for a proposed change to current law and regulation concerning their operations. Top of the agenda is a legal provision banning any game of skill or chance that requires a financial transaction in order to play and offers any ‘hopes of gain’.

The above mentioned regulation is part of new measures to reform French consumer laws with regards to lottos, prize draws and games of chance. Targeted are games that offer  customers small financial transactions in return for life changing jackpots or pooled sums of money. French regulators are looking to toughen their stance on promotion and advertising of these products.

Social gaming operators are targeted by these potential new laws as the prizes offered in social gaming are of no monitory or ‘real world’ value, furthermore social gaming operators attract customers using terms such as ‘free play’ or ‘free prizes’. French regulators want stricter conditions and monitoring of games that engage customers using free terms in their marketing and capturing players using prizes of no value, some operators in social gaming could face an absolute ban from operating in the region.

France igaming regulators have been criticised by several business operations for their lack of understanding of igaming business practices and their high tax levys on regional play that has made it difficult for operators to generate positive revenues. Further criticism of new laws targeting social and skill gaming operators is expected in the coming weeks

Changes to the amendments must be put forward by Thursday this week and are set for discussion on July 22 at the French Senate and sent back to the Assembly with remarks and proposed changes. The Assembly will then debate the revised text in early September after the summer recess.