The law applicable to online gaming is complex and has a variety of sources. A lawyer can help you understand the regulations.
Applicable law: Online games of monetizable digital objects
The video game economy is booming, and monetizable digital objects are a key component of it. To regulate this growing sector and protect gamers, France is launching a three-year experiment, governed by articles 40 and 41 of the new law of May 21, 2024 (SREN).
Article 40 authorizes, on an experimental basis, online games enabling adult players to win digital objects that can be monetized by chance.
These items cannot be sold or exchanged for real money, nor can they be bought back by the gaming company or its partners, thus protecting players from abuse.
What is a monetizable digital object?
Monetizable digital objects are defined as game elements that confer specific rights on players and can be transferred to third parties.
A Conseil d'Etat decree will specify the conditions and ceilings for these rewards, excluding any form of legal tender.
I. Company obligations: player protection
Gaming companies must ensure the integrity, reliability and transparency of gaming operations. They must also protect minors and prevent excessive gambling, as well as combat fraud and money laundering.
A. Prior declaration and compliance
Article 41 stipulates that any company wishing to offer games with monetizable digital objects must register with the National Gaming Authority.
A decree will specify the information required for this declaration.
B. Head office and responsibilities
The company must be headquartered in the European Union or a European Economic Area country with anti-fraud agreements with France. Managers in France must guarantee local compliance.
C. Player verification and participation
Participation in the games is restricted to adults, with strict age and identity verification mechanisms. Only one account per player is allowed, reinforcing security and preventing abuse by resorting in particular to age checks in compliance with the RGPD. Support from a personal data lawyer is therefore necessary.
D. Prohibitions and obligations
Companies cannot buy back their monetizable digital objects. They must provide the National Gaming Authority with all the data required to combat fraud and the financing of terrorism.
II. Specific obligations for competitions
Sporting events and horse racing regulations
Strict rules apply to games based on sports competitions and horse races. Participants may not play or give away monetizable digital objects related to competitions, nor use privileged information.
A company offering monetizable digital games based on real horse races may only organize such games on races listed in the calendar provided for in article 5-1 of the law of June 2, 1891, which regulates the authorization and operation of horse races.
Before using horse racing data, the company must sign a contract with the French or foreign race organizer or its agent. This contract may not include an exclusivity clause in favor of a particular company. It must stipulate that the use of the data respects the values of public service obligations.
The parent companies of horse racing incorporate into the racing code of their specialty provisions preventing jockeys and trainers from :
- Participate, directly or indirectly, in monetizable digital object games based on the races in which they take part.
- Transfer, directly or indirectly, monetizable digital objects based on the races in which they participate.
- Communicate privileged information to third parties, unknown to the public, likely to be used in monetizable digital object games based on the races in which they participate.
III. Advertising and commercial communications
Commercial communications must exclude minors and prevent excessive gambling. Influencers must use platforms that exclude minors from their audience.
It is forbidden for any monetizable digital object game company, and for any natural person or legal entity acting in concert with it, to grant players loans in legal tender or in digital assets, within the meaning of article L. 54-10-1 of the French Monetary and Financial Code, or to directly or indirectly set up systems enabling players to grant each other loans in legal tender or in digital assets, with a view to purchasing monetizable digital objects or any other rewards that may be awarded and set by the Conseil d'Etat decree mentioned in I of article 40 of the present law.
Online public communication services on which monetizable digital object game companies offer monetizable digital object games may not contain any advertising for a company that may grant loans to players or allow lending between players, or any link to a site offering such loans.
The monetizable digital games company informs players of the risks associated with excessive or pathological gambling by means of a warning message defined by a decree issued by the Minister of Health after consultation with the French National Gaming Authority. The technical procedures for displaying the message are set by the National Gaming Authority.
Conclusion
France is putting in place a protective framework to develop the economy of monetizable digital object games. By strictly regulating their use and protecting players, this initiative could define the future of the video game industry in France.
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