As I said earlier the arrest of Bwin execs in France had a great impact in terms of regulation of gambling in Europe.
The European Commission may force France to give up its state monopoly on gambling. The Bwin case a month ago has provoked EU consternation in several countries across Europe. They are targetting the PMU and Française des Jeux.
The case of Bwin (formerly Bet and Win) was just the starting point in a clash between France and the European Union. The company was pursued by French authorities for anti-gaming laws, and asked the EU to intervene. They are now looking at the state monopoly on gambling, currently held by the PMU and the Française des Jeux.
In fact, the French state may be allowed to keep its monopoly, under certain conditions. However, the EU has insisted that Française des Jeux and PMU cannot maintain their monopoly if they are organising national lotteries. FDJ, for example, organises the French national lottery, and has also implemented Euromillions, giving it a share of foreign markets as well.
This latter case has raised the ire of Brussels commissioners, who are furious that the French state is allowing itself to enter foreign markets while preventing competition at home.
The PMU’s strangehold on horse racing betting results in many unsatisfied punters. The explosion in online betting with foreign-based sites in France has happened largely due to the ungenerous odds given by the PMU, who are effectively the equivalent of the British Tote. French racecourses are much unlike their British equivalents due to the lack of independent bookmakers, and many French gamblers find themselves betting online on a variety of events not even proposed by the PMU or FDJ.
The French state now faces the possibility of having to open up its market to competition in exchange for a licence and taxes. It could, of course, take the American route and ban online gambling altogether.