FINANCIAL REPORT - Française des Jeux

84 — 2010 FINANCIAL REPORT
of Directors that any specifi c matter be referred to it where this
seems necessary or relevant.
In 2010, the Audit Committee met fi ve times to discuss specifi c
matters, namely:
– examination of the draft fi nancial statements for the year ended
31 December 2009
– review of management planning documents and update on
2009 cash management
– review of the 2009 report on the internal control procedures
– review of the consolidated fi nancial statements at 30 June 2010
and the management planning documents
– review of the accounting options for the 2010 closing (including
the accounting treatment of LVS and LB Poker acquisitions)
– update on the requirements of the independent online gaming
regulatory authority (ARJEL) relating to the separation of accounts
for the gaming and betting services offered by virtue of the
licences granted and for the company’s other activities in France
and abroad
– presentation of the 2011 budget and the company’s multiannual
business plan
– hearing of the independent auditor candidates and proposed
selection of an independent auditor
– presentation of the mapping of major risks of the company
– presentation of the work of the auditors and the work of the
Audit, Internal Control and Quality Division.
The Audit Committee reports on its work to the Board of Directors.
1.4. NOMINATIONS AND REMUNERATION COMMITTEE
By decision of the Board of Directors of 15 October 2008, a
Nominations and Remuneration Committee was created,
composed of four directors appointed by the Board from among
its members. In 2010, the Nominations and Remuneration
Committee met twice.
This committee is responsible for issuing an opinion to the Board
of Directors on the remuneration of corporate officers, in
compliance with the applicable regulations, especially Articles
L.225-44, L.225-47 and L.225-53 of the French Commercial
Code and Decree No. 53-707 of 9 August 1953.
1.5. LEGAL ENVIRONMENT
1.5.1. Changes in the legal and regulatory context in 2010
The major event of the year is the entry into force on 12 May 2010
of Act No. 2010-476 opening the online gaming and betting
sector to the competition and to regulation. This Act creates a
comprehensive legal framework for online games open to
competition—specifi cally, poker, sports betting (parimutuel and
odds betting) and horse race betting (parimutuel only), which can
only be offered by operators that have been approved at fi rst by
ARJEL, the regulatory authority for online gaming.
Parliament thus opted for a controlled opening of the online
betting and gaming market by drafting legislation that responds
to the reality of the demand, whilst protecting consumers and
strengthening gaming-related risk prevention. This means:
– preventing excessive or pathological gaming and protecting
minors
– ensuring the integrity, reliabili ty and transparency of gaming
operations
– preventing fraudulent or criminal activities, as well as money
laundering and the fi nancing of terrorism
– ensuring balanced and equitable development of different types
of games to avoid any economic destabilisation of the sectors
concerned.
ARJEL, the independent administrative authority that monitors
compliance with policy objectives for online gaming and betting,
has a role of arbitrator in this regulation, as it serves the
government's objectives in the matter of gaming policy. ARJEL is
responsible for issuing 5-year licences to operators seeking to
market online gaming or sports betting offers, and for ensuring
compliance by licensed operators with their statutory and
regulatory obligations. As such, ARJEL continually supervises the
operators’ activities. By the end of 2010, 48 licences had been
granted to 35 operators. La Française des Jeux obtained a licence
on 5 June 2010 for sports betting; LB Poker, its joint venture with
Groupe Lucien Barrière and Online Gaming 3D, was licensed for
poker on 26 July 2010.
The Act of 12 May 2010 also established a Gaming Advisory
Committee (Comité Consultatif des Jeux, or “CCJ”) with jurisdiction
over all betting games and games of chance. It is responsible for
centralising all data from the supervisory authorities and game
operators, ensuring the consistency of the betting and gaming
sector regulation with the overall objectives set out by the Act,
and issuing opinions on all matters relating to this sector and to
raising public awareness of the dangers of excessive gaming.
Decree No. 2011-169 of 10 February 2011 states that this
committee will report to the Minister for the Interior, Overseas
Territories, Local and Regional Authorities and Immigration, and
to the Minister of Budget, Public Accounts, the Civil Service and
Administrative Reform.
Until the setting of the CCJ on 9 March 2011, la Française des Jeux
continued to be supervised by the Advisory Committee for the
Implementation of Gaming Policy and Responsible Gaming
(Comité consultatif pour l’encadrement des jeux et du Jeu
Responsible, or “COJER”), established in 2006 under the authority
of the Budget Minister and composed of representatives from the
French Ministries of Health, Interior, Youth and Sport, and Budget,
as well as experts from civil society. COJER has the dual mission
of advising the Minister’s decisions concerning la Française des
Jeux’s commercial offer and giving its opinion on the company’s
annual action plan for the prevention of excessive gambling and
promotion of Responsible Gaming.
It gives its opinion to the Budget Minister overseeing this
committee. It may also be consulted on all matters relating to the
control and supervision of gaming.