Following new legislation in Europe, online bingo companies are having to review in which areas they operate. A number of countries are currently reviewing their legislation in regards to online gaming.

In France there was no common system for bingo therefore by definition, bingo was not technically allowed on French territory but they did have some exceptions. In terms of lottery and Paris Sports a state monopoly was given to the French. On 12th July 1983, all games that were considered a game of chance were banned apart from some casinos where games were approved by the ministry, thus allowing 200 gaming venues to operate legally.

Due to European Community Law, article 49 of the treaty establishes the principle of freedom to provide service across the European Community. This basically means that no member state may prohibit another state to offer services on its territory without valid reason. This is supported by article 43 of the treaty relating to the freedom of establishment. Italy endured similar problems with the monopoly of gaming. It was ruled that member states could not restrict cross border supply of gambling services. The court in 2003 held that "the Italian Government does not pursue any coherent policy to limit and to remove and play activities". Therefore other state members could not be restrained from providing services within its territory. Since 2003 European states have adhered to this ruling and online bingo operators have enjoyed a free for all.

It appears that since France are extending the monopoly to the internet it is obviously not in support of that policy and they are making a stance. Due to the pressure on EU Law the French Government have been forced to bring about regulation in an attempt to avert the European Court Of Justice forcing France to open its market to competition. This provided an opportunity for France to legalize some games to the competition and this opened up 25,000 gaming sites that were considered to be illegal by the French. In pursuit of the new legislation the French decided to tackle problem gaming and underage access. Secondly they were looking to control the level of turnover in gaming on the internet.

Liberalization will occur for sports book betting and online poker. Other games including roulette and slot machines are prohibited for the reason of the risk addiction being to high. The license to be issued will be free and operable for 5 years at which point they can be renewed. Caps will be placed on player stakes as well as player account balances. It must also be obvious to the player of an indication of time spent playing and indication of the money lost in a game session. The French justified these restrictions being put in place to prevent compulsive gaming and deter money laundering. France will not recognize any license issued by other European Countries, including all State members. Those that gain a license and operate on French territory will have to have seperate accounting departments to deal with French players. It is thought that the legislation will come into force on the 1st June 2010.

The reason for the rush in the legislation was to have it enacted before the World Cup. Many bingo companies have had a complete rethink on whether to offer gambling products in France. We are already aware that William Hill have decided to pull out all Casino services from France. For the time being William Hill are continuing to operate in other European States. Gaming operators will recall what happened when the US decided to enforce their gaming legislation. In addition to a number of Senior gaming company directors being arrested and facing the possibility of jail, many of the companies incured substantial fines. Party Gaming, for example, settled an out of court agreement with the US Justice Department for $105 million.

In addition to the decision made by William Hill, Betfair have also withdrawn from the French market. Tim Phillips, the Director of European Affairs commented: "We are looking very hard at the French market and how we may operate within the new license regime. Although it is not impossible for a newcomer to create a commercially viable business most projections show it will be difficult to do so given the proposed restrictions imposed on license holders"

It is expected that between 30-50 operating licenses will be granted in the coming days and the majority of the license holders will fail to be able to operate profitably. While Bingosupermarket is not an expert on the French tax system the proposed levels seem quite high and it is anticipated that the French Government will be significantly better off as companies that operate on French territory will have to pay tax on players stakes. Having a tax on players stakes rather than company profits could be crippling to any operator within the French market. To give readers an idea of the levels being discussed, such tax rates would be higher than the protested tax paid by UK bingo clubs and if it were to be adopted in the UK most clubs would close overnight. In light of the financial crisis in the European States no doubt European member leaders will be eagerly watching the situation unfold with a view to adopting similar policies.

Gaming companies that do not adhere to the new regulations will face prosecution and no doubt there will be a mass of companies pulling out of the French market in the next few days. To say that online bingo operators face difficult times over the next few years would be an understatement.