French lawmakers are currently deliberating a series of proposed amendments to a bill aimed at regulating online gaming, particularly in the context of Web3-style games featuring monetizable digital assets. These amendments, referred to as JONUM, could pave the way for significant changes in the digital gaming and casino industries in France. Let’s explore the key aspects of these proposed amendments and their potential impact.
Regulation of Web3-Style Games:
MPs in France are reviewing amendments to a bill that seeks to regulate online gaming, specifically games utilizing monetizable digital objects, such as Sorare and Socios. This bill, known as JONUM, is currently under consideration, with the aim of providing a legal framework for these innovative gaming platforms.
Short-Term Changes by Sorare:
In response to the French gambling regulator, ANJ, the French company Sorare has made temporary adjustments to its NFT football game for the domestic market. These changes are intended to serve as interim solutions while awaiting legislative changes that could provide more clarity and permanence to the industry.
Distinguishing JONUM from Gambling:
Some proposed amendments to Article 15 of the legislation aim to differentiate JONUM from traditional gambling products. This distinction is crucial to ensure that JONUM’s definition does not inadvertently encompass online casinos, which currently operate without regulation in France. Lawmakers are concerned about potential alterations in online casinos to comply with the law.
Restricting Transfer of Digital Objects:
One significant amendment proposes that monetizable digital objects should not be allowed to be transferred, directly or indirectly, to any gaming company for consideration. This measure aims to maintain the integrity of the digital asset ecosystem and prevent exploitation by gaming companies.
Authorization of Land-Based Casinos:
Online casinos are currently illegal in France, but an amendment suggests authorizing land-based casinos to offer online gambling services. This approach aims to channel players toward a regulated, controlled, and taxable online gambling experience, rather than unlicensed alternatives.
The Bill to Regulate Online Casinos:
Philippe Latombe of the Democratic Movement party introduced Bill 1248 in May, seeking to regulate online casinos. This bill proposes an initial five-year moratorium during which online casino operations would be restricted to existing national operators, introducing a period of controlled growth.
Ecologist Group’s Proposal:
The Ecologist group in parliament has proposed removing Article 15 entirely from the bill. They argue that the issues related to Web3, blockchain technology, and cryptocurrencies deserve a dedicated bill rather than being tucked into a broader piece of legislation.
FDJ’s Acquisition of ZEturf Approved:
The French Competition Authority has given the green light to the national lottery operator, FDJ’s acquisition of ZEturf. This move is expected to help FDJ expand its presence in the online gambling market, particularly in the realm of online horse racing betting.
Separation of Gaming Activities:
As part of the approval for FDJ’s acquisition, there is a requirement for clear separation between FDJ’s monopoly gaming activities and competitive gambling products. This separation includes distinct player accounts and the prohibition of promoting online betting at points of sale or to online lottery players.
French lawmakers are actively considering amendments to regulate online gaming, with a particular focus on Web3-style games featuring monetizable digital assets. These proposed changes could significantly impact the digital gaming industry and open the door for regulated online casino operations. As discussions continue, the landscape of gaming and gambling in France may undergo substantial transformation.