News

Tuesday, 27 April 2010 00:39

With the online gambling market recently opening up in France, there has been a sudden rush to apply for licences by interested parties eager to cash in.

The new liberation of France's online gambling market, that has an estimated worth by 2011 of around €1.4 billion on sports betting alone has attracted keen interest from gambling operators eager to obtain licenses to operate in France. Early reports have indicated that as many as 100 licenses could be granted.

This week it has been reported by Les Echos that, according to Frederic Epaulard, general secretary for the French regulator ARJEL, 30 companies with an interest in gambling have made an application for a licence. He said that there are three categories that candidates, if successful could be licensed under.

Those three categories will be sports betting, horse betting and poker. Licenses will be granted by ARJEL lasting five years with the option to renew. Conditions are laid down by the Cahier des Charges which online gambling operators, who are seeking a licence to enable them to provide French consumers with games of chance, must fulfil.

The requirements are set out in their 37 page, 11 chapter document which requires applicants to provide comprehensive information including economic, financial and accounting data. Applicants must also provide full details of their online gambling website with details on how players’ accounts will be processed, any activities that are sub-contracted out and what internal procedures and controls are set in place.

Licence fees that are payable to ARJEL will vary depending on how many licenses are requested. A single licence fee is reportedly €5,000, whereas two licenses will cost €8,000 and three will cost €10,000.

Some specific requirements deal with obligations for the treatment of sensitive information regarding data protection, while there are also stringent provisions in place to guard against instances of underage and problem gambling and infiltration by organised crime. The website's technical architecture is also covered, with particular regard paid to IT security and software fairness issues.

Another firm requirement is corporate transparency, with applicants furnishing full documentation with regards company directors and all parties owning or controlling greater than 5 percent capital or having voting rights. Financial stability is a requirement with financial information having to be delivered up by applicants and guarantees must be in place to honour players' payments or winnings.