French Black Market Gambling More Successful Than Regulated Sites

Article by : Erik Gibbs Jul 18, 2024

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The French online gaming association, AFJEL, has reported a significant shortfall in the betting handle for Euro 2024, with figures falling drastically short of pre-tournament estimates. This downturn comes amidst a surge in illegal gambling activities within the country. The French gambling regulator, l’Autorité Nationale des Jeux (ANJ), had initially forecasted a betting volume of €1 billion (US$1.09 billion) for the duration of the tournament. However, AFJEL disclosed that only about half of this amount was actually wagered by its members.

This year’s betting handle not only failed to meet expectations set by the ANJ but also saw a 25% decrease from the 2022 World Cup, where the stakes amounted to €900 million as the French national team advanced to the final. The decline in legal betting activity has raised concerns among industry stakeholders, with a report from PricewaterhouseCoopers (PwC) in December 2023 estimating that illegal gambling constitutes approximately 10% of the total market in France.

The challenges facing the legal gambling market in France are multifaceted. The absence of a regulated online casino sector, combined with the high taxation rates imposed on legal gambling operations, are frequently cited as significant obstacles impeding market growth. Nicolas Béraud, the president of AFJEL, expressed that the actual betting figures starkly contrast the anticipated “frenzy” of online sports betting within the legal framework.

Despite the disappointing financial performance, Béraud maintains that the tournament was a success from a player protection standpoint. He emphasized that AFJEL’s members adhered strictly to the guidelines set forth by the ANJ and honored their commitments to responsible gambling practices.

Béraud also highlighted the urgent need to address the growing threat posed by illegal gambling operators. These unlicensed entities operate with impunity, undermining the efforts of legal operators to create a fair and responsible gambling environment. AFJEL has called for more stringent measures to block illegal gambling sites and to impose stricter penalties on those involved in illicit gambling activities.

This situation poses a significant threat not only to the integrity of the legal gambling industry but also to the welfare of the players, who may be exposed to unfair practices and inadequate protections on unregulated platforms.

The situation calls for a concerted effort from regulators, industry representatives, and policymakers to address the underlying issues that are fueling the rise in illegal gambling. Strengthening enforcement measures, revising tax policies and considering the introduction of a regulated online casino market could be potential steps toward creating a more robust and sustainable legal gambling ecosystem in France.