PLAY-TO-EARN GAMES
Security Code in this area will apply to their commercial communications, in a comparable manner as to the applicable rules for online gambling; • specific provisions regarding sports and horse-riding fantasy games. For instance, operating a sport fantasy game may require an agreement from the organizer of the sporting competition or event; • enhanced supervisory powers for the ANJ over JONUM operators. The ANJ will be able to monitor JONUM operators’ compliance with their obligations, particularly in relation to the fight against illegal gambling, and to impose any appropriate sanctions in the event of a breach of these obligations. These sanctions may range from a mere warning to a ban, for a maximum of three years, on an operator conducting JONUM activities. A number of sanctions applicable to gambling operators are also applicable to JONUM operators. Once adopted by the French Parliament, the regulatory framework of the Web 3.0 gaming sector will still need to be supplemented, which will take some time. Subject to the discussions at the Joint Committee, governmental decrees should be enacted to: • specify the information that games with monetizable digital objects operators must notify to the authorities prior to launch; • specify the list of authorised game themes; • specify the characteristics of the rewards that can be offered including a potential rewards cap; •
• specify the list of data used to search for and identify any act committed by a player likely to constitute fraud, money laundering or terrorist financing, as well as the procedures for checks carried out by the National Gaming Authority; and • frame the prevention of excessive or pathological gambling behaviour, in particular through the introduction of self- exclusion mechanisms and self-limitation mechanisms for spending and playing time. No decision has been announced yet on the sensitive point of taxation for this new legal regime. The government’s initial message was one of fair taxation that would foster innovation. One can reasonably expect that taxation for JONUM would therefore not be as important as taxation for gambling and games of chance, which are considered by the public institutions as highly profitable activities overall. 9 The legal framework detailed here is already much more complex and burdensome than what was initially designed by the French government. However, it remains theoretically lighter than the legal regime for online and land-based gambling. Obviously, the way ANJ will choose to regulate these new activities will be key in ensuring this sector thrives in France and does foster further developments of unicorns. Lastly, let’s not forget it is, at this point, an experiment and that the situation will need to be reassessed first 18 months after its launch, and then before the end of the three-year period. Nevertheless, we should rejoice at the first significant loosening of French gambling regulation since 2010 and hope it is a step in the direction of other regulatory changes such as the opening of online casinos. We look forward to exploring the opportunities created by this new development.
ANNABELLE RICHARD Partner, Pinsent Masons France LLP For information contact ++33 153530223
Annabelle.Richard@ pinsentmasons.com
specify the procedures for opening, managing and closing player accounts by the gaming company, notably to warrant that minors cannot access the games; 9 See French Cour des Comptes Report on gaming and gambling, September 21, 2023, Les jeux d’argent et de hasard : un secteur en mutation, des enjeux de régulation | Cour des comptes (ccomptes.fr).
BENJAMIN GREZE Associate, Pinsent Masons France LLP
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IMGL MAGAZINE | JANUARY 2024
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