European High Court Moves to Revoke French Monopoly

Thursday, 26 July 2007

The European High Court has ruled that France must open its borders to real money gambling online. It has specifically requested the reversal of a decree under preparation which will stipulate that only licensed operators such as Francaise des Jeux (

The European High Court has ruled that France must open its borders to real money gambling online. It has specifically requested the reversal of a decree under preparation which will stipulate that only licensed operators such as Francaise des Jeux (FdS), and turf bookie Pari Mutuel Urbain (PMU) can provide online gambling. It will also rule that French banks must block financial transactions between personal accounts and unauthorised gaming rooms and that internet service providers must post notices warning players that they are at risk should they deal with sites which are not allowed.
The EU has given France until August 24th ‘to modify its decree’ which is in direct violation of Article 49 of the European Treaty guaranteeing ‘free movement of goods and services’ within the EU. Failure to comply could lead to financial penalties against the French authorities.
French legal expert Cedric Manara said.
‘I think France will have to open sports betting to all EC companies, but only in the case there was already a market with only one actor, such as horse race betting.’
France’s own Cour de Cassation overturned the barring of PMU competitor Zeturf as it did not comply with Article 49. Other skirmishes between the French authorities and foreign operators include the arrest of Bwin Interactive executives after the company made a formal complaint about the French monopoly.
The EU decision did allow for restriction of fraudulent sites, or those failing to demonstrate sufficient security. France has argued that better monitoring and regulation can occur if the companies remain sovereign.



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