1. France & Belgium gaming updates Legal Gaming in Europe Summit London, 22 January 2007 Thibault VERBIEST Partner – ULYS Thibault.verbiest@ulys.net www.ulys.net

2. Legal Gaming Summit Content 1. France  Parliament voting new law ►measures against online gambling operators 2. Belgium  Draft Games of chance Act

3. Legal Gaming Summit Draft measures against private gaming operators  Fines against operators of “illegal” online gaming sites to be doubled from 30 000 euros fine to 60 000 euros for sports betting and lotteries operators; from 45 000 and 100 000 euros fine to 90 000 and 200 000 for horse betting operators;  Fines against “advertisers”: 30 000 euros + possibility for courts to multiply this fine by four times the amount invested in the advertising expenses

4. Legal Gaming Summit  ISPs to inform clearly subscribers of the gambling sites which are considered by Home affairs as “inappropriate” (“blacklisted”) under sanction of up to a year imprisonment + €75 000 fine  Banks to stop the flow of funds from individuals or “blacklisted” companies which organise betting or gaming activities  Law likely to be voted by the end of February

5. Legal Gaming Summit Unlawful character of the Act  Community law principles ► article 49 and Gambelli  Lack of notification under Directive 98/48  Freedom of expression (ECHR)  Commission currently examining French answer to letter of formal notice

6. Legal Gaming Summit Ongoing actions  Complaint to DG competition  High administrative court seized of consistency of monopoly with EU law  Lobby against the new law but highly political climate makes any drastic change unlikely (presidential elections)  Annulment by the French Constitutional Court ?

7. Legal Gaming Summit Belgium  Parliament voting on new Games of chance Act  Possibility for EU remote gaming operators to obtain “certificate” with Gaming Commission if fit and proper  All games to be subject to control of Gaming Commission  Gaming Commission to allow only limited number of licences  Act was set to be adopted via 2006 Finance Act but lobby by National Lottery+ some Belgian casinos  Act now undergoing normal legislative procedure  Likely to be adopted as such within 3-4 months

8. Legal Gaming Summit Concluding remarks  France toughening its stance but difficult to know whether it will “walk the talk”  Gaming policy inconsistent with EC law  Political matter and pre-electoral period  Senate report calls for a new simplified and harmonized gaming policy  Belgium likely to adopt new Act ►regulation rather than prohibition  Lack of harmonisation between gaming legislation

9. Thank you for your attention Thibault.Verbiest@ulys.net