France Launches New Regulatory Regime for Monetizable Digital Object Games

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France has implemented a new regulatory framework for games involving monetizable digital objects, called Jeux à Objets Numériques Monétisables (JONUM), indicating a possible shift in Europe away from applying legacy gambling laws to Web3 games. 

The JONUM regime, established under the SREN Act of May 2024, came into force earlier this month following the publication of implementing decrees, the French gambling regulator l’Autorité Nationale des Jeux (ANJ) confirmed.

The JONUM framework is intended for online games that have gambling elements, but do not offer winnings to players in cash. This includes games that gamble monetizable digital objects such as non-fungible tokens (NFTs), which may be traded or sold on secondary markets away from the infrastructure of the game itself. If a game mechanic involves financial cost, an element of chance, and monetizable digital objects, then the JONUM framework may apply.

As one of the first frameworks of its kind in Europe, the JONUM framework is experimental in nature and will be in place for three years. 

However, like traditional gambling operators in France, JONUM operators will still need to verify the age and identity of players to stop minors from participating and implement responsible-play mechanisms such as time and spending limits, as well as self-exclusion options. 

JONUM operators also need to make a declaration to the ANJ before releasing their games in France and maintain regulatory reporting transparency, including activity logs and, where applicable, wallet data for regulatory monitoring and AML compliance.