Lawyer for the law applicable to online games - Romain Mirabile

The law applicable to online games is complex and stems from various sources; a lawyer can help you understand the applicable rules.

Applicable law: Online games involving monetisable digital objects

The video game economy is booming, and monetisable digital objects are a key component of it. To regulate this growing sector and protect players, France is launching a three-year experiment, governed by Articles 40 and 41 of the new Law of 21 May 2024 (SREN).

Article 40 authorises, on an experimental basis, online games allowing adult players to win monetisable digital objects through chance.

These objects may not be sold or exchanged for real money, nor bought back by the gaming company or its partners, thereby ensuring that players are protected against abuse.

What is a monetisable digital object?

Monetisable digital objects are defined as in-game items that confer specific rights on players and may be transferred to third parties.

A decree issued after consultation with the Conseil d'État will specify the conditions and caps applicable to these rewards, excluding any form of legal tender.

I. Companies' obligations: player protection

Gaming companies must ensure the integrity, reliability and transparency of gaming operations. They must also protect minors and prevent excessive gaming, as well as combat fraud and money laundering.

A. Prior declaration and compliance

Article 41 provides that any company wishing to offer games involving monetisable digital objects must file a declaration with the Autorité nationale des jeux.

A decree will specify the information required for this declaration.

B. Registered office and responsibilities

The company must have its registered office in the European Union or in a country of the European Economic Area that has anti-fraud agreements with France. Officers based in France must ensure local compliance.

C. Verification of players and participation

Participation in the games is reserved for adults, with strict age and identity verification mechanisms. Only one account per player is allowed, thereby strengthening security and the prevention of abuse, notably through player age checks carried out in accordance with the GDPR. The support of a lawyer specialising in personal data law is therefore necessary.

D. Prohibitions and obligations

Companies may not buy back their monetisable digital objects. They must provide the Autorité nationale des jeux with all the data necessary to combat fraud and the financing of terrorism.

II. Specific obligations for competitions

Regulation of sporting competitions and horse races

Strict rules apply to games based on sporting competitions and horse races. Participants may not play with or transfer monetisable digital objects related to the competitions, nor use insider information.

A company offering games involving monetisable digital objects based on real horse races may organise such games only on races appearing on the calendar provided for in Article 5-1 of the Law of 2 June 1891 governing the authorisation and operation of horse races.

Before using horse race data, the company must enter into a contract with the French or foreign company organising the races or its agent. This contract may not contain any exclusivity clause in favour of a particular company. It must stipulate that the use of the data complies with the values of public service obligations.

The parent companies of horse racing must incorporate into the racing code of their discipline provisions preventing jockeys and trainers from:

1. Participating, directly or indirectly, in games involving monetisable digital objects based on the races in which they take part.
2. Transferring, directly or indirectly, monetisable digital objects based on the races in which they take part.
3. Disclosing to third parties insider information, unknown to the public, that could be used in games involving monetisable digital objects based on the races in which they take part.

III. Advertising and commercial communications

Commercial communications must exclude minors and prevent excessive gaming. Influencers must use platforms allowing minors to be excluded from their audience.

Any company offering games involving monetisable digital objects, as well as any natural or legal person acting in concert with it, is prohibited from granting players loans in legal tender or in digital assets, within the meaning of Article L. 54-10-1 of the Monetary and Financial Code, or from setting up, directly or indirectly, arrangements enabling players to grant each other loans in legal tender or in digital assets, in order to allow the purchase of monetisable digital objects or of the other rewards that may be awarded and set by the decree issued after consultation with the Conseil d'État referred to in section I of Article 40 of this Law.

The online public communication services on which companies offering games involving monetisable digital objects provide an offer of such games may not contain any advertising for a company likely to grant loans to players or to enable lending between players, nor any link to a website offering such a loan offer.

The company offering games involving monetisable digital objects informs players of the risks associated with excessive or pathological gaming by means of a warning message defined by an order of the minister responsible for health, issued after consultation with the Autorité nationale des jeux. The technical arrangements for displaying the message are set by the Autorité nationale des jeux.

Conclusion

France is establishing a protective framework to develop the economy of games involving monetisable digital objects. By strictly regulating their use and protecting players, this initiative could shape the future of the video game industry in France.

For more information and tailored advice, please do not hesitate to contact me. Discover our services to protect your online presence.