New definition and new regime in France for "games with monetisable digital objects", known as "JONUM" ( "jeux à objets numériques monétisables")

The SREN Act  (Loi sur la Sécurité et Régulation des Espaces Numériques), enacted in May 2024, adapts French law to the requirements of the Digital Services Act, the Digital Markets Act and the Data Governance Act. Among the innovations introduced by this Act, articles 40 and 41 define and create a new legal regime for "games with monetisable digital objects", known as "JONUMs" ( "jeux à objets numériques monétisables"). 

In an innovative approach, the French legislator has created a new regime distinct from that for online gambling, and has provided an unprecedented legal definition for these new types of games.

I- Establishing a legal definition of JONUMs

The SREN Act introduces a three-year experimental framework, allowing the operation of JONUMs defined in article 40 I. as "games offered via an online public communication service that enable players who have made a financial sacrifice to obtain monetisable digital objects, based on a mechanism that relies on chance, to the exclusion of any monetary gain, provided that these objects may not be transferred for consideration, directly or indirectly via any natural or legal person, either to the gaming company that issued them or to a natural or legal person acting in concert with it". 

The JONUMs defined in this way are one of the innovative aspects of the SREN Act. These games, commonly referred to as "play-to-earn" or "blockchain games", offer players the chance to win or acquire digital objects that can be exchanged for real money. These JONUMs can therefore be considered to be somewhere at the crossroads between cryptoasset services and games of chance.

Article 40 I. also provides a definition of monetisable digital objects (objets numériques monétisables or "ONUM"), which are game elements that grant players one or more rights associated with the game, which may be transferred, directly or indirectly, for consideration, to third parties. It should be noted that these objects are considered monetisable because they can be sold to third parties, in particular via exchange platforms. It is forbidden to transfer these objects for remuneration to the gaming company that issued them or to any person collaborating with it. In fact, article 41 IV. expressly prohibits a JONUM company from directly or indirectly purchasing the ONUMs it has issued.

NB: This new regulation is also part of a drive to rationalise the use of money in video games. As ONUMs can be obtained through a mechanism that relies on chance, by players who have agreed to make a financial contribution, it may be useful to remember that the European Bureau of Consumers' Unions (BEUC), a body that brings together several dozen European consumer associations, issued recommendations in September 2024 on the subject of purchases made in the context of video games. 

The aim of these recommendations is to give players better control over transactions carried out using "in-game and in-app premium currencies", i.e. virtual currencies made available in-game in exchange for real money, and to make it easier to understand the price actually paid for these transactions.

Lastly, a decree not yet published in the Conseil d'Etat , will be issued after consultating on with the National Gaming Authority (Autorité nationale des jeux or "ANJ") and associations representing local elected representatives of the gambling and video gaming industries. It will determine the categories of authorised JONUMs, as well as the conditions under which, by way of derogation, rewards other than ONUMs may be awarded by JONUM companies, on an ancillary basis. The decree will specify the nature of such ancillary rewards, but the law already specifies that they may not be in the form of legal tender and that the amount awarded to all participants may not exceed 25% of the JONUM company's turnover for the calendar year. 

II- The regime applicable to JONUMs

A- Mandatory introduction of player protection measures

In order to provide a framework for these new systems, the SREN Act lays down strict rules to prevent practices arising from the commercial operation of these types of games that could present risks.

Indeed, the Association Addictions France considers that by combining the world of video games with the mechanisms of gambling, JONUMs present risks of addiction, particularly for teenagers and young adults in search of winnings, with highly questionable commercial practices (bonuses for playing, promises of high winnings, attractive advertising, etc.).

The law therefore requires JONUM companies, i.e. the developers of this type of game, to ensure the integrity, reliability and transparency of gaming operations and the protection of minors. JONUM developers are obliged to prohibit gambling by minors and prevent excessive or pathological gambling, fraudulent or criminal activities, money laundering and the financing of terrorism.

In particular, it is expected that the participation of minors, even emancipated minors, in this type of game will be prevented, by means of an age verification device, and that a message warning that the game is forbidden to minors will be displayed on the game interface.

No commercial communication on JONUMs may be addressed to minors, and if "influencers" are involved, this must only be made possible on online platforms offering the technical possibility of excluding all users under the age of eighteen from the audience for the said content.

NB: The French Audiovisual and Digital Communications Regulatory Authority (Autorité de régulation de la communication audiovisuelle et numérique or “ARCOM”) recently proposed a system of age verification by bankcard for pornographic sites in order to protect minors. However, the French Banking Federation (Fédération française des banques or “FBF”) is opposed to this method, deeming it ineffective and dangerous. According to the FBF, this solution would fail to prevent minors from accessing these sites, as 1.4 million minors have a bank card. In addition, the FBF highlights the risks of bankcard phishing on unreliable sites. 

It should also be noted that since 11 January 2025, pursuant to other provisions of the SREN Act and a technical reference framework drawn up by ARCOM on 11 October 2024 after consultation with the CNIL, pornographic platforms accessible in France must comply with an age verification obligation based on a principle known as "double anonymity", i.e. at the time of connection, the user must undergo identity verification via an external platform, which will then transmit the information to the pornographic site . While this obligation only applies to pornographic platforms for the time being, it may influence the obligations that will apply to other online players whose access would have to be restricted in the name of youth protection under other provisions of the SREN Act.

In addition, the JONUM company will have to put in place self-exclusion mechanisms and self-limitation measures for spending and playing time, in order to prevent excessive or pathological gambling behaviour by players, and refrain from sending any commercial communication to account holders affected by a self-exclusion measure applicable to the games it operates.

The law also prohibits any JONUM company and any natural person or legal entity acting in concert with it from granting players loans in legal tender or digital assets, or from directly or indirectly setting up mechanisms enabling players to grant each other loans in legal tender or digital assets.

Article 41 of the SREN Act also lays down obligations for monetisable digital games companies to combat money laundering and the financing of terrorism, pursuant to Articles L. 561-2 et seq. of the French Monetary and Financial Code. However, the implementation of these provisions has been postponed, as companies have 18 months to comply with the law from the date of its promulgation, i.e. until 21 November 2025.

Finally, the law also specifies that any advertising by any means whatsoever in favour of a site offering the public an illegal JONUM offer is punishable by a fine of 100,000 euros. The court may increase the fine to four times the amount spent on advertising the illegal activity.

A Conseil d’Etat decree, drawn up in collaboration with the ANJ and industry players, is expected to define the precise application of these new rules.

B- A strengthened regime for the sports and horse racing sectors

The SREN Act imposes strict rules on games with monetisable digital objects linked to sporting competitions or events and horse racing, two sensitive areas because of the increased risks of conflicts of interest, manipulation of results and use of insider information. These rules are designed to preserve the integrity of competitions and events.

Direct participants in competitions, whether athletes, jockeys or trainers, may not acquire or transfer digital objects associated with their own events, even through an intermediary. The communication of insider information is also prohibited. Sports federations and companies organising horse races must adopt measures to prohibit their members from taking part in these games, failing which they will be penalised.

For games based on horse racing, specific contracts must be signed with the authorised racing companies, guaranteeing that the use of the data complies with public service obligations, without any exclusivity clause.

C- The role of the ANJ in ensuring compliance with this regime

Under the terms of Article 41 of the SREN Act, companies offering games with monetisable digital objects must make a prior declaration to the ANJ. The ANJ defines the procedures for filing and managing this declaration and must be informed immediately of any substantial change in gaming operations.

Monetisable digital games companies will only be authorised by the ANJ if they comply with certain conditions and procedures, which will be specified in a Conseil d’Etat decree after consultation with the ANJ and with associations representing local elected representatives of the gambling and video game industries. 

The only activities permitted are those of companies offering JONUMs to the public that have their registered office in a Member State of the European Union or in another State party to the Agreement on the European Economic Area that has signed an agreement with France containing an administrative assistance clause to combat tax evasion and avoidance. Companies whose registered office is not in France must therefore designate the person or persons, domiciled in France, who are responsible for them.

In addition, the ANJ will have the power to monitor compliance with these obligations, adapting the intensity and frequency of its inspections according to the risks identified. Companies must provide the ANJ with data on gambling activities and financial transactions in order to ensure compliance. Article 41 of the SREN Act gives the ANJ extensive powers to collect any information or documents required to carry out its inspections, without being bound by professional secrecy.

The ANJ Sanctions Committee may impose sanctions in the event of a breach of the provisions of the SREN law relating to the offer of JONUM. Penalties for illegally offering JONUM include up to 3 years' imprisonment and a €90,000 fine. Financial penalties may also be imposed, representing up to 5% of the operator's turnover. 

In conclusion, the SREN Act introduces an innovative regulatory framework for JONUM, responding to the growing need for security and transparency in the digital economy. By providing a legal framework distinct from that for online gambling, this legislation aims to regulate the use of mechanisms for acquiring monetisable objects and to protect users, particularly young people, against the risks of addiction and abusive commercial exploitation.

However, certain aspects of this new system still need to be specified by decree. These specifications will make complete the framework laid down by the SREN Act and allow operators to ensure compliance with the requirements.

Our expert team is on hand to answer any questions you may have about how to ensure your offer complies with the new regulations and to guide you through the process.