PokerStars, PartyGaming Awarded French Licenses

PokerStars and PartyGaming were among the big winners who were awarded licenses to operate online poker rooms in France. The two industry giants were part of the second round of licenses awarded, following the licenses given to companies including Everst Gaming and Bwin earlier in June.

Also receiving licenses in the second round were Chilipoker and Partouche Poker. PartyGaming was also awarded a license for only sports betting, the only company in the latest round of licensing to be granted that privilege.

These licenses are lucrative for online gaming groups, and have come into existence because of legislation passed by the French parliament earlier this year. Historically, the gambling industry in France had been dominated by the government, but the bill – recently signed into law and passed by a healthy 299-223 margin – opened up the online gambling market in France to private companies.

The legalization of private online gambling was seen as a move to dry up black market gambling by providing a safe, legal option for French citizens. In addition, the move will create extensive tax revenue for France; under the legislation, online poker is taxed at 2%, while sports betting will be taxed at 7.5%.

PartyGaming – which owns all of the Party-branded properties, such as PartyPoker – has been especially active in establishing itself ahead of the opening of the French online gambling market. Even before acquiring a license, PartyGaming had already announced a long-term deal with PMU (Pari Mutuel Urbain), the state-controlled betting system in France that previously dealt mostly in horse racing. The move was designed to help jumpstart Party’s entry into the newly regulated market, and allow PMU to expand their services immediately.

Not all companies are jumping at the opportunity to enter the French market, however. The regulations have actually led some companies, such as William Hill and Betfair, to leave the French market rather than compete with the new influx of companies.

The new gambling legislation did have its detractors, and the French government has taken some steps to mitigate their concerns. Recently, a system was put into place that allows gamblers to apply for a three-year ban from all casinos, both live and online. Once the ban is put in place, it cannot be lifted until the three-year term is up.