Proposed French draft legislation designed to regulate the online gaming and betting market has failed tests against European law by the European Commission.

The ruling means infringement proceedings could be launched by the Commission should France decide to adopt the legislation.

The French draft law, which was submitted on March 5, caused the European Gaming and Betting Association to make a number of concerns against EC law. These included: limiting the opening of the game market to the online segment only; limiting the opening of horse betting to pool betting only; limiting the average payback ratio; a proposed licence system that failed to take into account securities already offered by other EU jurisdictions; and the creation of a ‘sports betting right’ in favour of sports federations.

Martin Haijer, director for regulatory affairs at the EGBA, has welcomed the news."Today’s action by the Commission underlines that online gaming and betting is a cross economic activity where EC legal requirements prevail."