As the Esports World Cup in Paris heads into its second week, the French gambling regulator, Autorité Nationale des Jeux (ANJ), has reiterated that betting on esports is illegal everywhere in France, on every platform.
The regulator issued the reminder during the first week of the Esports World Cup competition, emphasizing that its ban on esports betting is because the legislator wants to “protect the young public from the dangers inherent in gambling (addiction, isolation, family and financial problems, etc.).”
This is at odds (pardon the pun) with a large number of regulatory regimes, where esports markets are licensed and regulated as per pretty much any other sport that a bettor wishes to wager on.
The government continues to emphasize its efforts in esports, bringing large events to the country. But the gambling regulator’s stance is bizarre and makes little sense in light of this push.
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Why is esports betting illegal in France?
The 2010 French online gambling law (Articles 10-14) limits legal betting to a sporting catalog approved by the ANJ, and esports does not make that list.
Legislation passed in 2016 created a new legal category for “compétitions de jeux vidéo” in the Code de la sécurité intérieure (Articles L.321-8 to L.321-11). It states directly, in the law’s own text, that organizing competition under this chapter does not include organizing betting on it.
The law that acknowledged esports and competitive gaming also outlawed betting in the same paragraph.
The snappy reminder that esports wagering is illegal is followed by warnings against using sites that offer esports betting. By the ANJ’s definition, any site offering esports markets is not approved under French legislation.
It lists certain dangers posed by unregulated operators, including: lack of responsible gambling tools; insecure data and identity theft; rigged gaming software; lack of a payment guarantee; and unfair commercial practices.
But are these genuine threats? Or is this another “playing Grand Theft Auto makes kids steal cars and shoot guns” situation with out-of-touch government officials?
The current legislation protects nobody
The ANJ’s classification of esports as something fundamentally different from a sports perspective is typical of a regulator who doesn’t really understand what they’re regulating.
Currently, an 18-year-old esports fan can place a bet on the FIFA World Cup, but not the Esports World Cup. They can wager on France versus Spain, but when it comes to Vitality versus Karmine Esports, there’s no ability to do so.
The current regulation and wording in the announcement almost imply that watching esports is more addictive than watching traditional sports. Both are entertainment products, and a best-of-five esports final can last far longer than a typical sporting encounter.
So how does prohibiting betting on esports “protect the young public from the dangers inherent in gambling (addiction, isolation, family and financial problems, etc)?”
The answer is, it doesn’t. A person of legal age to gamble can still bet on football, the horses, or anything that is deemed to be fine by the ANJ.
Two years ago, Lamine Yamal was 17 when helping the Spanish national team win the European Championship. People watch, compete, and bet on football. It almost feels slightly ridiculous still having to explain that there’s really very little difference between the two betting products.
This is not the regulatory status quo
The absolute global regulatory muddle around lootboxes, crypto, and any digital product shows that those in charge still aren’t really sure how to approach anything a little bit new.
Esports is just another tab on a sportsbook. By including esports as an “approved sport” or just treating it as any other competitive discipline, customers (and younger bettors) are therefore protected by the domestic regulatory regime.
In the UK, those wishing to wager on esports can. They must still be over the age of 18 (and prove it); use a platform that is integrated with GamStop; not bet with a credit card; and meet plenty of other run-of-the-mill licensed gambling requirements. The same applies to those licensed under the Maltese Gaming Authority (MGA).
The point is, nothing specific is required – it just slots seamlessly into a sportsbook. In the US, Kalshi offers esports everywhere, and while the prediction market debate rages on, most US citizens can now trade esports with a click.
Claiming protection, but doing the opposite
An esports audience does skew younger, but the legal age for gambling is set for a reason. By allowing regulated esports wagering, you’re not opening the floodgates to a bunch of underage gamblers.
In fact, by prohibiting esports betting, you’re shoehorning those that wish to wager on esports because they enjoy watching it and like to have a bet to use skin betting, or offshore operators – the very folk that ANJ dedicates the majority of its post to highlighting the dangers of.
The exact demographic the ANJ claims to be trying to protect is now driven to the least-protected environment available, which is not good policy design.
The French regulator needn’t craft a brand-new regulatory regime; it just needs to allow standard online sportsbooks to include an odds feed for esports titles. Then the people who are old enough and already betting on football or the horses can wager on their favorite esports, too.
Currently, they’re just handing over any French esports betting to a market they ostensibly warn against but can’t fully police.
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