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The adoption of the law of 17 March which provides that, from now on, transactions sales or other services in which a financial gain is provided for, for consideration, whether or not the expectation of gain is entirely due to chance, are qualified as lotteries and therefore prohibited in principle CSI, Article L Gambling was initially part of the State monopoly, becoming so in The law of 12 May , on a European initiative, opened up the online gaming market to competition. Increased vigilance with regard to money flows is also deployed. Online betting : The ARJEL — companies wishing to obtain an agreement from ARJEL must provide a certain amount of information, including information on the legal structure, management, shareholders and liabilities of the company, as well as the characteristics of its public offer and the means implemented to ensure the security and reliability of the website. For instance, online gambling operators have to publish on the website a warning about the interdiction of minors from participating in any gambling. Land-based, online operators may be civilly and criminally liable for illegal gambling. The French Civil Code provides that the law does not grant any action for a gambling debt or for the payment of a bet Article Therefore, no action for a gambling debt will be admissible in court. The French law does not tax the profits made from gambling as they are not considered a lucrative occupation or a source of profit. It is a principle that French criminal law is applicable to offences committed on French territory. Have fines, licence revocations or other sanction been enforced in your jurisdiction? Players may also be involuntarily placed on the list, in particular following a court decision. Operators have the obligation to display a warning on their website in order to discourage minors from participating in gambling. French case law establishes that as soon as a website is directed towards the French public, and that it is consulted from a place located on the national territory, the French courts are competent to hear the infringement Court of Cassation, 5 July , No It follows from the foregoing that online gambling websites not authorised in France, even not hosted in France, may be prosecuted before the French courts pursuant to French criminal law. It is referring to any gambling game or betting performed exclusively through the service of online communication to the public. Online gaming operators are required to inform players of the possibility of self-banning by registering on a prohibited person list. Please include in this answer any material promotion and advertising restrictions. It also sets the technical characteristics of online gaming and betting software platforms, certifies the gaming software used by operators and determines the technical parameters of the games. For the prohibition to be lifted, the following conditions must be met cumulatively:. This may be in the form of a warning from the ARJEL, a reduction in the duration of the licence or a suspension of up to three months, or a withdrawal of the licence with a prohibition on resubmitting for a period of three years. The internal control measures put in place by operators must comply with the requirements of the ARJEL decision of 24 February It should also be noted that online gaming operators must comply with the asset freezing measures imposed by a French authority. This has been the case for the liberalisation of games. In general, licensed operators must ensure the conformity of the games they offer and the guarantees of compliance with public policy in accordance with the licence obtained. It can be the case when the licence is not granted to an operator, which provides, however, such services. European Union law undeniably influences French law. Operators must also ensure the integrity and transparency of all gambling operations, and contribute to the prevention of fraud or other criminal activity money laundering, terrorist financing. A defaulting player may then invoke this legal basis to avoid his obligations. The duration of this prohibition may not be less than seven days. This is a controlled liberalisation. Minors are not allowed to participate in any gambling activities except for charitable acts, encouragement of arts, financing of non-profit activities, lotteries in fairgrounds and traditional bingo. The same injunction may be issued to online service providers and site hosts. This text should be published before the end of KGA Avocats. Consequently, the French legislator has taken measures not to go against these principles. Relevant Authorities and Legislation 2. Likewise, the casino staff must be licensed and undergo special training to detect signs of compulsive and addictive gambling. In general, operators must prevent players on the list of persons prohibited from gambling from having access to the website. Prevention of money laundering and terrorist financing : Measures have to be put in place to identify customers, set up internal controls, appoint a person responsible for reporting any suspicious movement and inform the authorities see question 2. The legislator is concerned in protecting both private and public interests. First of all, each player may request to be placed on a blacklist kept by the Ministry of the Interior. After approval by the SCCJ, the authorisation is effective. The gaming operator must obtain a global licence for all the activity in place. The supervisory authorities do not hesitate to impose sanctions in the event of non-compliance by operators. No gambling advertising must be aimed at minors see question 2. Tax regulation : The French law does not tax the profits made from gambling as they are not considered a lucrative occupation or a source of profit. Online gambling operators must ensure that minors, even emancipated minors, do not participate in the games. It should also be noted that gaming operators are subject, in addition to the usual taxes corporate income tax, VAT, etc. The importation or manufacturing of slot machines are prohibited in France. Operators are required to block access to the site for users based in France and not to target them. Where the debt relates to loans knowingly granted for the purpose of financing games of chance, no action could be taken even by a licensed creditor operator. Certain information must be posted on online gaming websites. Its mission is to monitor online gambling or betting operations and it participates in the fight against illegal sites and fraud. Indeed, the State requires gambling operators to do everything in their power to protect gamblers from addiction. By exception, casinos can offer slot machines Interior Security Code, D Concerning online gaming, the French gaming authorities requires that a sufficient level of data security is ensured for cloud-based gaming devices. Casino and gaming club : After investigation and obtaining the assent of the municipal council, the authorisation of the minister takes into account the requirements related to a controlled gaming policy and the equitable distribution of the supply of casino games in the territory in question. Gambling operators must ensure that minors, even emancipated minors, do not participate in the games. France: Gambling ICLG - Gambling Laws and Regulations - France covers common issues in gambling laws and regulations — including relevant authorities and legislation, application for a licence, licence restrictions, digital media, enforcement and liability — in 39 jurisdictions. Application for a Licence and Licence Restrictions 3.{/INSERTKEYS}{/PARAGRAPH} {PARAGRAPH}{INSERTKEYS}ICLG - Gambling Laws and Regulations - France covers common issues in gambling laws and regulations — including relevant authorities and legislation, application for a licence, licence restrictions, digital media, enforcement and liability — in 39 jurisdictions. Throughout the period of validity of the authorisation, operators must demonstrate the ability to fulfil their obligations and be transparent, including in the organisation of the company and in the event of a legal entity in the capital structure. In these decisions, the Union judge recalled the principle of free movement of goods, services, capital and persons, and free competition between economic entities. It also applies to mobile gambling and interactive gambling. Does your jurisdiction permit virtual currencies to be used for gambling and are they separately regulated? Online gambling is prohibited for minors. Special taxes are levied on gambling operators see question 2. The requirement of asking the age of the subscriber player and website visitor cannot be overridden. Online games : The ARJEL ensures that the objectives of the policy on online games and betting subject to approval are met. This tax does not apply to land-based casinos. Moreover, the same applies to players on the list of persons prohibited from gambling, whether voluntary for a period of three years maximum, or involuntary following a criminal court decision. Criminal proceedings are instituted in the event of unauthorised activity. Only licensed operators may also be liable and sanctioned for failing to comply with their obligations as licensees. People located in France cannot participate in online gambling through an unauthorised site or application. The French gambling policy is that of protecting both consumers and the economic activity of gaming operators terrestrial or online. Cash payment is capped in casinos in order to prevent money laundering and terrorist financing. The offence is deemed to be common to the territory of the Republic if one of its constituent acts has taken place on that territory Article of the Criminal Code. Casino and gaming clubs : An agreement must be concluded with the city where the casino or gaming club is to be located. However, due to the significantly reduced risks for professional poker players — as is the case with poker, land-based or online games — the gains can be taxable, as poker is not considered a game of pure chance and is comparable to a professional activity. Each person on the list has their account terminated. According to case law, these provisions have been included in order to combat the offer of illegal gambling. Lottery : When the FDJ authorises private persons to operate registration stations for lottery games, its authorisation is granted after obtaining the assent of the Minister of the Interior, issued in consideration of issues of public policy, public security and the protection of health and minors. Similarly, online gaming operators must require the player to communicate their age at the time of registration and for any subsequent visit to the website. Concerning lotteries, the authorisation of the FDJ is required after approval by the Minister of the Interior. However, due to the significantly reduced risks for professional poker players, gains can be taxable. Online slot machines are prohibited. This online gaming law, referring only to sports betting, horse betting and club games, is applicable to cover internet gambling in general. A weekly limit has to be set by the operator on the cumulated cash wire transfers from the bank account to the gambling account on the website, and the cumulated amount of stakes used by the player. A help number must be provided or a link must be provided to a help website. All payment methods, even virtual money, are subject to the reporting obligations provided by the Customs Code Article In order to prevent money laundering Article L, 9 of the Monetary and Financial Code , land-based and online gaming operators are required to put in place measures to identify customers, set up internal controls, appoint a person responsible for reporting any suspicious movement and inform the authority TRACFIN, which is in charge of intelligence processing and action against clandestine financial circuits. Chapter Content Free Access 1. Gambling, once strictly prohibited, is now very strictly regulated. In order to ensure economic stabilisation, it must also be ensured that the various games are fairly developed. However, the State monopoly was maintained for:. Casino licences are granted by the Minister of Interior. The authorisation of the Minister of the Interior is required in the form of a public service delegation, after consulting the Consultative Commission on Circle and Casino Games.