Brussels Bans French Bookmaker Monopoly

Monday 01 October 2007

The European Commission have been having another nip at French monopolies, this time their State gambling empire.

Anyone who had had a flutter on the horses in France, will know that they need to visit their local tabac (tobacco shop), where the ubiquitous 'PMU' logo will be emblazoned. More recently, the PMU have also introduced an on-line gambling site.

Those preferring to try their hand at 'Loto', or the result of a football match, will have done so through the Française des jeux (FDJ), also available in the tabac and on-line.

Both organisations are State run, and have a monopoly of all gambling in France, other than that which takes places through licensed casinos.

The French Government justifies these monopolies on the basis that they consider all gambling is immoral, and that unregulated gambling would open the door to criminal elements. They also claim that State control of horse betting is the only way to provide funding for the sport.

Whilst the Commission are impressed with the concern of the French Government for protecting their inhabitants, they have been less enthused by the fact that the PMU, in particular, has been trying to enter markets outside of France.

Neither has the Commission been able to properly understand why the French Government permits the PMU and FDJ to advertise so widely, when they look upon all forms of gambling with such distain.

The Commission considers that the controls are ‘disproportionate’ and ‘discriminatory’ and designed to stop foreign bookmakers entering the French market.

It may be no small conicidence that the two monopolies happen to generate over €1 billion in revenues each year to the State coffers!

After years of wrangling, the French Government have finally had to concede some ground, to the extent that they recently announced that the on-line gambling monopoly of the PMU would cease.

Their hand has been forced, not only by the pressure from Brussels, but by a recent French Court of Appeal hearing, which found against the monopoly of the PMU in favour of a Maltese based company which was endeavouring to enter the on-line gambling market in France.

Nevetheless, French Government is insisting that any company that operates an on-line gambling business in France, must actually be based in the country, something which is contrary to the free circulation of services in Europe.

Do not put your shirt on the prospect that this one will be resolved quickly.