Online Casinos Pull Out of French Market
Thursday, June 10th, 2010On Tuesday, France opened up its online gambling market to foreign companies. Previously they banned online casinos from overseas and only allowed domestic casinos to get business from French customers. This, however, was in violation of European Union rules, which set up free trade agreements between EU member nations. After defying the rules, this week France gave in.
Operating an online casino in the French market isn’t easy, though. Their new online gambling laws are very strict and have rules for licensing that many call excessive and some even call “Draconian.” So far, approximately 35 online casino operators have applied for the licensed in France, with the French issuing 17 licenses to the 11 operators. The other 24 online casinos are still waiting for word from the French.
The new French online gambling legislation established a regulatory authority called the ARJEL, which is an acronym that makes sense in France. ARJEL can only give out 30 licenses and a separate license needs to be given for each type of gambling operation, which is why some online casino have more than one. With 17 of the 30 licenses already given out, there are only 13 still up for grabs.
There are a few big-name online gambling companies still waiting for licenses, such as Microgaming, PartyGaming and PokerStars. Other online gambling companies have pulled out of the French market entirely, meaning they will no longer accept bets from French customers. Some big names in that group include Betfair, Spin Palace and Ladbrokes. Those companies say that the rules and restrictions by the French government make it an unsuitable market for turning a profit.
Once the French decided to open the online gambling market, they hurried to get licenses handed out in time for the World Cup, which is the most popular sporting event in the world. Billions of dollars will be bet on the Cup over the next month, so the French want in on the money.

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