The French gambling market is one of the most important new fields in Europe since both Italy and the UK have already legalised gambling and analysts say Germany won't legalise soon.
Online gambling in France could reach 1.25 billion euros ($1.70 billion) by 2012, says Manchester-based consultancy H2 Gambling Capital and around 50 companies are expected to apply for between one and three licences in France.
The new law, which makes online poker and sports betting legal in time for the soccer World Cup in June, is designed to both boost tax revenue and end the dominance of the two players in France's 8.5-billion-euro gambling market.
Companies say the sports betting tax rate, set at 8.8 percent of revenues, will erode profits.
The French regulator has also put in one of the strictest compliance regimes in Europe and requires all bets to be permanently stored in order to track and fight addiction.
Risk runs high for new entrants as Francaise de Jeux will keep its monopoly on low-risk lotto and casino games while online operators will be overly exposed to sports betting, where losses can potentially wipe out the house.
"We're missing casino games, which is a shame, since they are important to overall financial stability," said Antonio Costanzo, interim CEO of BWIN France.
"Let's just say the monopoly will do fine."

Source: Reuters

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