The Autorité nationale des jeux (ANJ), the French gambling regulator, has levied a €500,000 ($572,797) fine against an online betting operator, designated as Company X, for its failure to effectively identify and assist customers displaying signs of problematic gambling.
The penalty was announced on Thursday after an investigation revealed that Company X did not properly identify 29 players who were at high risk, with six players completely overlooked and 23 misclassified as being at a lower risk.
From October 1, 2023, to March 31, 2024, the ANJ conducted a detailed inquiry into Company X's account data stored in its secure data vault, known as the "coffre-fort." Using a scoring system that considered factors such as deposit frequency, betting intensity, loss patterns, and self-exclusion history, the regulator pinpointed the 30 players with the highest risk profiles. Of these, 29 players were central to formal grievances raised by the regulator.
The investigation also found that Company X did not provide appropriate support or interventions to 25 of the identified players aimed at moderating their gambling behavior. The total net losses for these players were assessed at €683,355, while Company X made net gains of €190,501.86 during this timeframe.
The ruling by the sanctions commission is based on key legal statutes. Firstly, it relies on the gambling law of May 12, 2010 (as amended) and the Code de la sécurité intérieure, which obligate licensed online operators to recognize excessive or pathological gambling behaviors and to provide support for the affected players.
Additionally, the non-binding ministerial framework from April 9, 2021, outlines expected risk detection indicators, including betting frequency, loss chasing, voluntary limit adjustments, multiple account usage, and time engaged in gambling.
The commission clarified that the obligations to identify risky behavior and to provide appropriate support are separate and independently enforceable duties. A failure in either area can result in sanctions, regardless of performance in the other. Historical data, such as recent voluntary self-exclusions, were deemed relevant in assessing risk levels during the investigation period.
Although the ministerial framework is flexible and does not prescribe a single algorithm for detection, operators are mandated to show that they make every effort to comply by using necessary data alongside the recommended indicators.
The ANJ also enhanced its regulatory approaches recently, launching a new algorithm in May designed to identify a greater number of potential problem gamblers among online and in-play bettors than currently reported by operators.
Company X contended that the methodology employed by the regulator and the clarity of legal obligations were ambiguous. It asserted that French law does not provide a clear definition for "excessive" or "pathological" gambling, leading to potential confusion regarding obligations. Additionally, the company questioned the applicability of certain indicators, including the assessment of "completed bets" and handling voluntary limits across reopened accounts, raising concerns of possible false positives.
The operator also defended its use of automated warning emails, exclusion from promotions, and temporary suspensions for fraud as adequate gradations of intervention. Company X pointed to remedial actions it had implemented, such as upgrading its detection algorithm and boosting its player protection team, and noted an average 28% reduction in net losses over a 90-day period as evidence against the imposition of a significant fine.
The commission, however, rejected these arguments, affirming that the cadre de référence is precise and enforceable under law. It upheld the use of the ANJ's indicators and scoring methods, dismissing the technical objections raised by Company X.
While acknowledging that automated emails assist in reducing harm, the commission deemed these measures insufficient in most instances and criticized the operator for continuing to offer bonuses to high-risk players, which could promote ongoing gambling.
Company X has faced regulatory penalties before; in 2024, it was fined for exceeding the statutory payout rate ceiling for that year. However, the commission did not escalate the fine for the current violations based on past sanctions.
The ruling, dated July 10, 2026, will be formally communicated to Company X, which has a two-month period to file an administrative appeal with the appropriate courts.
