Legislation Poker France

Legislation Poker France Wikipedia
Legislation Poker France Race

Europe On The Leading Edge Of Poker Regulation France and Italy were the first countries to put together a successful licensing and regulatory framework, and several other European countries followed them.

All forms of gambling are regulated and legal in France.
Brick-and-mortar operations may host card games, casino games,
sportsbooks, and racing betting while online operations may offer
all the same except casino games. All-in-all, France is a
gambling-friendly nation.

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A NEW French law regulating online gambling has hit a last-minute delay - following a complaint from Malta. Online sport and horse racing bets will be opened up to new, legal competition as planned from next week, but France's plans to regulate online poker have been postponed by at least a month.
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France’s southern neighbour, Spain, also had double digit declines in its online poker revenues this year. Pooling France’s online players with countries such as Spain and Italy may have led to greater numbers of players wanting to engage in online games such as poker as there would have been increased competition.

It’s not all smooth sailing in France though. High taxes and
excessive regulation make it difficult for licensed gaming sites
to stay in business. Nearly half of the gaming sites that
acquired licenses in 2010 have since left the market. The high
taxes on poker pots and sports bets also affect players, which
has resulted in large numbers of players choosing to do business
with unlicensed foreign sites.

The good news is gamblers have options. Since there are no
laws that criminalize playing at unlicensed sites, players can
choose from the whole assortment of licensed and unlicensed
sites. If you like what you see at a French-legal gaming site,
you’re good to go. If you’d rather gamble somewhere else, you
can choose from a wide range of other options.

How Online Gambling is Regulated in France

The biggest change in gaming law in recent history happened
in 2010. After pressure from the EU to end its restrictive
gaming laws, the French government passed the Gambling Act (Law
number 2010-476). The act created the Regulatory Authority for
Online Games (ARJEL) whose responsibility it became to license
and regulate online gambling in France.

The Gambling Act was important for players, because it
disbanded the government monopoly that existed previous to the
passage of the law. Now, the French market was open to
competition from other EU gaming sites. 35 companies applied for
licenses and became the first non-government entities to offer
online poker, sports betting, and horse racing betting.

French politicians chose not to include traditional casino
games such as roulette, slot machines, and table games because they
felt those games would be too addictive. To this day,
traditional casino games aren’t offered by French-licensed
gaming sites.

Some of the bigger names to get licenses included PokerStars,
Party Poker, and Everest Poker. About a dozen sports betting
organizations also received licenses. The introduction of
competition to the market was a good thing for players, but
there was one problem: taxes.

The Gambling Act called for excessive taxes on both poker and
sports betting. All poker pots are taxed 2% in addition to the
rake poker sites normally take out of pots. To this day, players
pay upwards of 7.5% in total rake (compared to an industry
average of 4-5%) on every pot.

Sports betting was hit with an 8.5% tax on all bets placed.
Both sports betting and poker suffer from these taxes. Players
complain that the higher tax rates result in a
higher-than-normal rake in poker and less likelihood of making
money with sports betting. Several poker sites have even left
the market due to the onerous tax laws.

To top it all off, the Gambling Act doesn’t allow player
pools to be shared across national borders. This means French
players are cut off from the international poker scene. When you
play on a licensed French poker site, you only play with people
who are located in France. This has caused liquidity problems
for licensed sites as they find it difficult to keep the games
running with a limited player pool.

The high taxes and restricted player pool have led to many
players choosing to play at unlicensed sites headquartered out
of other countries. The French gambling market has great
potential, but it’s stifled by the burdensome regulations and
taxes.

Online gambling started out as an unregulated industry. The first step in the process of bringing legitimacy to the industry was the creation of online gaming commissions. Many started in island nations.

These include Malta, Gibraltar, Alderney, Isle of Man, Curacao and Kahnawake.

These jurisdictions are still by and large involved in online casino regulation. But over time, regulation of online gambling, and the development of law surrounding online gambling, has become an area of interest for larger economic powers.

Below is an overview of how online gambling is handled in a variety of major international jurisdictions.

UK online gaming regulation

The United Kingdom was the first country to address this situation. The UK Gambling Commission was created through the Gaming Act of 2005 and oversees remote gaming. This combined all gaming in the United Kingdom under one regulator. Online gaming under the jurisdiction of the Gambling Commission includes online poker, casinos, sports betting, bingo and keno.

The UK Gambling Commission created a tax on internet gaming but it had a loophole. Only companies located in the United Kingdom were required to be licensed. This motivated companies that once calling UK home to migrate to tax havens.

These offshore companies were not just evading taxes, but there were also player disputes that UK regulators could not intervene with due to a lack of jurisdiction. These two issues pushed the country to revisit its online gaming licensing process.

Any company that now operates in the UK must be licensed by the Gambling Commission. There is 15 percent tax on all gaming win, known as a point of consumption tax. The Gambling Commission also has jurisdiction in gaming disputes.

This caused some remote gaming companies to leave the market. Others consolidated brands as each required licensing under the Act.

Canada online gaming regulation

Canada is largely an unregulated country in terms of online gaming. Gaming regulations are up to the individual province. Provincial lotteries regulate online gaming in all jurisdictions where it is regulated. Poker, sports parlays and casino games are operated under a license where it is specifically approved.

Remote games are licensed under the lotteries in British Columbia, Manitoba, Ontario and Quebec.

British Columbia and Manitoba operate under the PlayNow brand. Ontario’s site is PlayOLG. Quebec’s is Espacejeux. These are the only sites operated and regulated by Canada governments.

Boss Media software is used by these lotteries. The poker sites between the lotteries are networked.

There are more than 100 other sites that accept Canadians. These are not licensed and there is little recourse if there is a dispute.

France online gambling

Online gambling in France is regulated by the Autorité de régulation des jeux en ligne. This translates into English as the regulatory authority for online games. It is typically referred to by the acronym ARJEL. It was created by the French Gambling Act in 2010.

ARJEL regulated all forms of online gambling. This includes poker, casino games and sports betting.

There are multiple criticisms of ARJEL. The tax rate is 44 percent. This is the highest of any country in the world. Only the tiny US state of Delaware has a higher rate, which is 45 percent, but 100 percent up to the $3 million in annual revenue.

This high tax rate is a burden on operators. This cuts into the marketing budgets. This is one reason there are virtually no affiliate deals in the French online gaming sector.

Another complaint by operators is that online poker in ring-fenced. Poker players in France may only play at sites that operate within the country’s borders. There is no access to international player pools on legal French sites. This hurts liquidity. It limits the game availability as well as the size of tournament prize pools.

Winamax is the largest operator licensed by ARJEL. Others include PokerStars, bwin.party and Playtech. These and other companies licensed by ARJEL will use a .fr domain.

Spain online gambling regulation

The Spanish Gambling Act nationalized regulation of the online gaming industry in Spain. It created uniform framework between all regions of the country.

Online poker, casinos and sports betting are regulated by a central authority. The tax rate is 25 percent. This is more reasonable than the 44 percent demanded in neighboring France, but it is still historically high compared to most other countries.

In addition to the high tax rate, online poker players receive a poor deal. The tax rate forces Spain’s regulated online poker companies to charge a higher rake than sites in other countries. Another issue is that Spanish online poker does not share liquidity with other countries. All Spain poker sites are ring-fenced within the country.

PokerStars.es is the largest poker site in Spain. Other Spanish operators include 888, Playtech, bwin.party and Boss Media. Licensed sites in Spain will use the .es domain extension.

Italy online gambling regulation

Italy is another European country that strictly regulates its online gambling industry. Italy originally tried to block and blacklist companies from other EU nations that accepted Italian players. The EU Commission tossed out the blacklist and demanded Italy open its country to all companies licensed in the European Union.

Amendments to the Italian online gambling laws were made in 2009. The new regulations went live in 2010. This permitted companies outside Italy to receive an interactive gaming license. Games included poker, casinos and sports betting.

The first stage of online poker only permitted tournaments. This hurt popularity and drove players to underground sites. Cash games were later added to the available list of games. Licensed Italian poker sites are ring-fenced, meaning these platforms do not have access to player pools outside of Italy.

The tax rate is 20 percent in Italy. This is lower than other ring-fenced countries, but still higher than most jurisdictions.

PokerStars is the largest poker site in Italy. Other interactive gaming providers that hold an Italian license include Playtech, Microgame, Boss Media and bwin.party.

Online gambling regulation in the United States

Online poker and casino games are legal in three states. Delaware, Nevada and New Jersey each take a unique approach to its interactive gaming industry.

There are many similarities between the three states. Each requires players to be at least 21 years of age. Geolocation software pinpoints the device being used to log into the site. This ensures that players outside the jurisdiction cannot gain access. Each state regulates and taxes the activity.

There are also several differences. The tax rates differ between the states. Delaware uses the state lottery as the hub of the gaming. The other two states license outside companies. The games are also different between the jurisdictions.

Nevada online poker and sports betting

Nevada was the first state to legalize and regulate online gambling. It all started with online sports betting in 2010. Mobile apps and websites are permitted to accept wagers from anyone 21 years of age or older in Nevada at the time of initiating the action. CG Technologies, Leroy’s (now William Hill) and Station Casinos were all early entrants into that market.

Online poker was the next step for Nevada’s online gaming industry. It started on April 30, 2013 with the launch of Ultimate Poker. WSOP.com entered the market on September 17, 2013.

Real Gaming entered the Nevada online poker market in February 2014. Ultimate Poker shuttered in November 2014. Real Gaming struggled to draw a single game most hours of the day and folded in August 2016. WSOP.com now has a monopoly in Nevada.

Delaware and Nevada entered into a poker liquidity sharing agreement in February 2014. In March 2015, this went live. WSOP.com is the Nevada platform for this network. It connects to the Delaware Lottery’s poker network. New Jersey joined this network in May 2018.

Online poker and sports betting are the only two statewide forms of regulated online gaming. Both are available over the Internet and on mobile devices. Casinos may offer mobile casino games but only within the boundaries of their property.

The Nevada Gaming Control Board regulates online poker and sports betting in Nevada. It is the same gaming regulator that oversees Nevada’s bricks-and-mortar casinos. Nevada’s online poker and sports betting industry pays a tax rate of 6.75 percent.

Delaware online poker and casinos

Delaware was the second state to launch regulated online gaming. Casino games went live on November 1, 2013. The state’s online poker network launched the following week.

The Delaware Lottery regulates its online gaming industry. There are three skins on the platform: Delaware Park, Dover Downs and Harrington Raceway. All three are nearly identical. 888 provides the software for Delaware’s interactive lottery.

In addition to online poker, casino games are permitted. This includes slots, video poker and house-banked table games. The only two table games spread in Delaware at this time are blackjack and roulette. The casino software is limited in its game selection. Online and mobile apps are permitted as platforms. There is one video poker game and about a dozen slot titles bricks-and-mortar casino players will not recognize.

The tax rate for Delaware’s online gaming industry is effectively 100 percent due to its inability to generate more than $3 million in annual revenue. That rate lowers to 45 percent if the industry manages to break the $3 million annual threshold.

New Jersey online poker and casinos

New Jersey was the third state to enter the US regulated online gaming market. It permits online poker and casino games.

Atlantic City casinos are permitted to offer up to five brands on each bricks-and-mortar license. All New Jersey casinos partnered with software providers to power poker networks and casino platforms.

Borgata and Party Poker offer one poker network. WSOP.com and 888 paired for another one. PokerStars launched in 2016 with Resorts as its Atlantic City partner.

There are numerous casino brands in the New Jersey online casino market. These include Harrah’s, Caesars, 888, Tropicana, Virgin, Mohegan Sun, Resorts, Golden Nugget, Betfair, Borgata and Party.

Most platforms offer a unique aspect in terms of game variety. Most offer dozens of slot titles, multiple video poker games, blackjack, roulette, and a number of house-banked card games. Websites and mobile apps are acceptable platforms for New Jersey online gaming.

The New Jersey Division of Gaming Enforcement regulates the state’s interactive gaming industry. This is the same regulator that licenses Atlantic City’s eight casinos. The tax rate in New Jersey is 15 percent plus 2.5 percent to the state’s Casino Reinvestment Development Authority.

US Federal law regarding online gambling