The Autorité nationale des jeux (ANJ), the French gambling regulator, has levied a €500,000 ($572,797) penalty on an online betting operator referred to as Company X. This fine arises from the operator's failure to correctly identify and assist customers showing signs of problematic gambling behavior.
In an announcement made on Thursday, the regulator outlined how an investigation revealed that Company X did not appropriately recognize 29 high-risk players. Specifically, six individuals were entirely overlooked, while 23 others were classified at a lower risk than warranted.
The investigation took place from October 1, 2023, to March 31, 2024. The ANJ conducted an administrative inquiry into the account information stored in Company X's secure data vault, referred to as a "coffre-fort." Using a scoring system that measured various factors—including deposit frequency, intensity of betting, loss patterns, and self-exclusion history—regulators identified the 30 players presenting the highest risk. Company X faced formal grievances from the ANJ regarding 29 of these customers.
Compounding the issue, the operator did not provide adequate support or interventions for 25 of the identified players, failing to take sufficient steps to mitigate their gambling issues.
The commission calculated the total net losses for these 29 individuals at €683,355, while Company X benefited with net gains of €190,501.86 during the same period.
The sanctions against Company X hinge on several legal foundations. The first is rooted in the gambling law enacted on May 12, 2010, and the Code de la sécurité intérieure, which mandates licensed online operators to detect excessive gambling behaviors and support affected customers. Additionally, the framework established by a non-binding ministerial reference on April 9, 2021, outlines expected indicators for recognizing risk.
The commission highlighted that the duties of identifying risky behaviors and providing support are separate obligations, each deserving of enforcement action if unmet. The regulator also justified its assessment of historical behavior, such as voluntary self-exclusions, when evaluating risk during the investigation period.
While the 2021 reference framework offers flexibility in detection methods, operators must show adherence to all necessary efforts for compliance. In May, the ANJ introduced a new algorithm intended to identify a broader array of potential problem gamblers than those reported by operators.
Company X challenged the regulator's approach, arguing that French law does not provide a clear definition of “excessive” or “pathological” gambling, leading to vague obligations. The operator questioned the appropriateness of specific indicators used, such as how completed bets were counted and the way voluntary limits were managed across reopened accounts, citing concerns about possible false positives.
In its defense, Company X pointed to automated warning emails, exclusions from certain promotions, and temporary fraud-related suspensions as evidence of graduated interventions. The operator also mentioned improvements such as an upgraded detection algorithm and an expanded player protection team, claiming a 28% average reduction in net losses over a three-month period as a counterpoint to justify a lighter penalty.
However, the commission rejected these arguments, stating the cadre de référence is clear and enforceable. It maintained the validity of the ANJ's methods and scoring indicators, disregarding the operator's technical objections.
The commission acknowledged that while automated emails can help reduce harm, they found these measures insufficient in most scenarios. Criticism was also directed towards Company X for continuing to offer bonuses to high-risk players, which could encourage further gambling.
Company X had been previously fined in 2024 for exceeding the statutory payout rate ceiling for that year, but the commission considered the current violations separate and did not apply an increased fine due to prior sanctions. Official notification of the decision is scheduled for July 10, 2026. The operator has two months to appeal the ruling in administrative courts.
