After years of attempting to implement a nationalized online gaming system – and difficulties with the European Union over it – France is now looking to make changes to its system to allow for international competition for its citizens’ online wagers.
In an article in the International edition of the New York Times, it is stated that in 2010, France will begin accepting applications for licenses from online gaming companies that want to participate in the French market. By doing this, according to French budget minister Eric Woerth, the country would be able to reduce “illegal” online gaming as well as earn extra money through the taxation and regulation of the industry. It would also allow France to avoid sanctions from the European Union, which has been cracking down on countries with nationalized gaming operations.
In the New York Times International article, Woerth stated that approximately 75% of the online gaming operations in France were from what the country considers “illegal” gaming outlets. Woerth put the actual number of sites at 25,000 and said that, rather than banning them, the government would accept the idea of licensing and regulating those that wanted to be a part of the solution to the problem.
The government of France, through its online horseracing and casino operations that were created three years ago, takes in approximately €5 billion per year. With the new plan set to be implemented next year, the government will introduce a levy of about 7.5% on internet wagers on sporting events and horse races and 2% on online poker wagers. The legislation will be presented to the full cabinet of France at the end of the month and will call for licensing of online gaming companies in order for them to accept wagers from French citizens, according to the New York Times International article.
While many countries in the European Union, such as England and Ireland, have introduced regulation and taxation when it comes to online wagering, there is no comprehensive program for handling this issue. As such, there have been many contentious discussions among member nations of the European Union regarding online gaming. This has forced the European Commission, the European Union’s executive arm, to step in and attempt to arbitrate the question of online gaming.
The issue of Internet gaming has been one that has dogged the European Union over the past half of this decade. Back in September of 2006, France cracked down on online wagering to the point of arresting two executives from bwin while they traveled inside the country. Because of the crackdown, the World Poker Tour withdrew its highly popular stop at the Aviation Club in Paris in 2007.
France is not alone when it comes to attempting to nationalize the online gaming industry. Other countries, such as Germany, Sweden, and Spain, have attempted to lock in the revenues of online wagering to their respective countries’ coffers with varying degrees of success. After a great deal of protest regarding the restrictive trade practices from much of Europe’s online gaming world and trade organizations, some of these nationalization moves have been abandoned. Most recently, Spain and Germany have started licensing online gaming rooms. Sweden will also open a licensing program next year.
That’s awesome, good article Earl