ANJ fines operator €500,000 for failure to identify risks

The French gambling regulator, Autorité nationale des jeux (ANJ), has imposed a €500,000 fine on an unnamed online operator known as Company X. This is due to the operator's failure to adequately identify and support customers exhibiting signs of problem gambling. ANJ's investigation revealed that the company did not adequately identify 29 high-risk players. Six players were completely overlooked, while 23 were classified as lower risk.

Investigation and Findings

From October 1, 2023, to March 31, 2024, ANJ conducted an administrative investigation of Company X's account data stored in a secure "coffre-fort". The regulator employed a rating system based on various indicators, including deposit frequency, betting intensity, loss patterns, and self-exclusion history. Thirty players with the highest risk were identified, with 29 being at the center of the regulator's complaints. Company X also failed to provide adequate support or interventions to change behavior for 25 of these players.

Legal Basis and Methodology

The Commission's decision is based on several key legal frameworks. The first is the Gambling Act of May 12, 2010, and the Code de la sécurité intérieure, which require licensed operators to identify reports of excessive or pathological gambling. The second is the cadre de référence from April 9, 2021, which, although not mandatory, indicates expected indicators for risk identification. The Commission emphasized that identification and the provision of adequate support measures are independent yet mandatory obligations.

Disputes with the Operator and Commission Response

Company X challenged the regulator's methodology and the legal clarity of its obligations. It argued that French legislation does not provide a clear definition of "excessive" or "pathological" gambling. The company also contested the application of specific indicators, claiming that automated alerts and temporary suspensions are adequate measures. However, the Commission dismissed these arguments, affirming the clarity and applicability of the cadre de référence.

Previous Sanctions and Current Situation

Company X has faced sanctions before; in 2024, it was fined for violating payout limits. However, the Commission considers current violations as separate and did not increase the fine based on previous penalties. The operator has two months to appeal to the courts.

Company X stated that it has updated its detection algorithms and expanded its player protection team, while the Commission acknowledged that automated alerts could help reduce harm, but deemed them insufficient in most cases.