PLAY-TO-EARN GAMES
public communication service that enable, based on a mechanism that relies on chance, adult players who have made a financial sacrifice to obtain monetizable digital objects, to the exclusion of any gain in a tradeable currency, shall be authorized provided that these objects cannot be transferred whether directly or indirectly through the intermediary of any natural or legal person for financial reward either to the gaming company that issued them, or to a natural or legal person acting in concert with it. This article further provides that: Monetizable digital objects within the meaning of the first sentence of this II are game elements that confer on players alone one or more rights associated with the game, and which may be transferred, directly or indirectly, to third parties for financial reward. The games allowed will be determined by governmental decree after a non-binding opinion of the ANJ. According to the initial project prepared by the French government in June 2023, the games allowed could be: … games falling into one or more of the following categories, in which monetizable digital objects constitute game elements [such as game characters, advantages for participating or progressing in the game, or any other element usable in the game]: • fighting games based on simulated combat situations, which offer one or more users interactions with other players or game characters; • breeding games, which allow users to develop animals or imaginary creatures; • sports and horse-riding fantasy games, which offer users interactions based on real competitions, sports events or horse-riding trials; • adventure and quest games, which offer users a series of interactions based on a storyline or simulated situations. This list is now out of date and still under discussion. It is thus likely to change. It is noteworthy to point out that by focusing on the themes of the games rather than on their mechanics, the regulation is creating an opportunity for many operators offering games of
chance, casino related or other, that are ready to make some adaptations to match these themes. As this draft law is a three-year experiment, the government, with the contribution of ANJ, is committed to providing a mid- term review, that is to say 18 months after the enactment of this law. The ad hoc legal framework One of the major derogations created by this draft regulation, compared to the existing online gambling regulatory framework, is that JONUM operators will not need to obtain a license or an agreement prior to launching their activities. They will need only to notify the ANJ of their existence and the launch of their activities. 8 Article 15 bis of this draft regulation sets out a comprehensive regulatory framework for the three-year experimentation period. This article specifies the obligations of JONUM operators and the supervisory and sanctioning powers of the ANJ over JONUM operators. The regulatory framework provides in particular for: • specific obligations to prevent minors from playing games for financial reward. In this respect, JONUM operators shall implement an identity and age verification process before a player can withdraw their winnings; • obligations to prevent the risk of gaming addiction, notably by implementing self-exclusion and self- limitation mechanisms for spending and playing time. Furthermore, JONUM operators shall inform players of the health risks associated with gaming via a warning message; • obligations to combat money laundering and the financing of terrorism, with a compliance period for JONUM operators since these obligations will only apply 18 months after the enactment of the law; • specific provisions regarding advertising practices. JONUM operators will have to refrain from sending any commercial communication to minors and account holders benefiting from a self-exclusion measure applicable to the games operated. In addition, the restrictive provisions of the French Homeland
8 Article 15 bis, I, of the draft law No 175, as modified, by French National Assembly, October 17, 2023
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IMGL MAGAZINE | JANUARY 2024
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