Virve Marionneau

Consumer protection in licensed online gambling markets in France: the role of responsible gambling tools

Abstract Background: French online gambling markets were opened to licenced providers in May 2010. Under the new legislation and overseen by a state authority, licenced operators must comply to consumer protection measures. This paper presents and empirical analysis on the conformity of French operators to the requirements and the potential effect of these measures based on existing research. Method: Currently, 18 gambling websites operate in the French market. The data were collected by creating a player account on these sites, and taking note of the responsible gambling tools they proposed. The data were analysed thematically. Results: Results show that all licenced websites conform to the legal obligations that include verifying players’ identity, displaying a warning banner on the risks of gambling, informing about a possibility to self-exclude, providing a limit-setting tool and providing information on players’ account history. Most sites also provide additional tools, such as information on problem gambling or responsible gambling software such as Playscan. However, the proposed tools also have some shortcomings related to difficulties in using or in finding them, ineffectiveness because they are not mandatory, and their emphasis on player responsibility. Conclusions: The French law promotes consumer protection in online environments, but it leaves room for improvement. Governmentally imposed restrictions are systematically implemented, but levels of problem gambling have not declined. The paper suggests improving the implemented responsible gambling tools by increasing provider responsibility, making all tools mandatory and binding, active promotion of available responsible gambling features, and removing scientifically inaccurate information on problem gambling.

Justifications of national gambling policies in France and Finland

Aims The principles of free trade and free circulation of services within the European Union have created pressures to make the strictly controlled European gambling markets more open. According to the Court of Justice of the European Union, restrictions on gambling are only allowed if they are justified in admissible terms of consumer protection, prevention of criminal activity and protection of public order. This study compares the gambling laws of two European societies, France and Finland, to analyse how their legal frames of gambling have been adjusted to these principles. Design The data consists of up-to-date legislation on gambling in Finland and France. A qualitative analysis was conducted to study whether new ways of justifying have been included in legislative texts and if these are substantiated by measures related to consumer protection or crime prevention. Results France has mainly justified its restrictive policies on gambling in terms of preventing criminal activities while the Finnish legislation highlights the charitable causes funded by gambling proceeds, a claim not accepted by the Court of Justice of the European Union. Consumer protection is increasingly stressed in both countries, and the range of rationales has also grown notably since 2007. Conclusion While the vocabularies of justification accepted by the CJEU have expanded since 2007, these have not been substantiated by many new legislative measures. This is not attributed to political ill will but rather to the difficulty of changing existing legislative traditions.

Market Cannibalization Within and Between Gambling Industries: A Systematic Review

In economics, cannibalization refers to a process in which a new product or service partly or completely substitutes for those in existing markets. This systematic review analyses the existing evidence on cannibalization within gambling markets to determine whether such substitution takes place between different types of gambling. The analysis shows that new gambling products substitute to a certain extent for existing gambling products. The sector in which the evidence is most convincing is the casino industry, which cannibalizes lotteries and pari-mutuel racing. There is also evidence that casinos substitute for other casinos and for non-casino electronic gaming machines. Lotteries substitute for casinos, other lotteries, sports betting, and pari-mutuel or racing industries. In other cases, the evidence is less conclusive and sometimes non-existent, or industry relationships are more complicated. This review also found that even in cases where substitution does occur, it is incomplete, and thus the introduction of new products tends to expand the overall gambling market. We discuss these market dynamics and identify gaps in the available research.

Introduction: Gambling Regulations and the Use of Gambling Revenues in European Welfare States

The introduction presents the framework of gambling regulation currently in place in Europe. It enables the reader to evaluate individual chapters from a vantage point whether social services and other ‘good causes’ should be funded through the gambling proceeds. The chapter explains the importance of gambling in funding the welfare services, why gambling is allowed to expand even though it creates substantial harm, and choices governments face when regulating. The focus of the first section of the book is on case studies showing how gambling revenue is allocated to state-run welfare. The second part shows how gambling funds are earmarked for designated causes. The third part discusses recent legislative changes, and the final part of the book provides a theoretical evaluation on the matter.

Conclusion: Contradictions in Promoting Gambling for Good Causes

The concluding chapter draws together the findings of the case studies in this book by focusing on three contradictions in the ties between gambling and European welfare states. First, state involvement in gambling provision is justified differently based on whom these justifications are directed at, but these justifications also hide financial motivations. Second, how gambling regulation is organised does not have much effect on consumer protection. More important is to understand gambling harm beyond problem gambling, and the role of the state as a regulator rather than as a beneficiary. Third, gambling does not appear to be in line with the welfare ideology socio-ethically or from a financial perspective, as it only generates a cycle in which the same money is transferred between interested parties.

Gambling for the State: The Collection and Redistribution of Gambling Proceeds in France

The French state has adopted multiple roles in regards to gambling, functioning simultaneously as a provider, beneficiary and regulator. The French gambling sector is divided in four sectors that benefit different causes: The National Lottery Company FDJ is an important contributor to the state budget, but also to sports and other earmarked causes, while the horse racing operator PMU finances the equestrian sector. The privately owned and operated casino sector contributes both to local and central budgets through heavy taxation. Private online gambling operators are also heavily taxed. Using key informant interviews conducted with providers and beneficiaries of gambling in France, this chapter discusses the allocation of gambling funds and how other beneficiaries experience the strong role of the state.