French Black Market Gambling More Successful Than Regulated Sites

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.

Key Challenges Impacting Legal Gambling in France

• The absence of a regulated online casino sector has left a significant gap in the market.

• High taxation rates imposed on legal gambling operators are hampering growth.

• Rising illegal gambling operations continue to undermine regulated operators.

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.

AFJEL’s Focus on Responsible Gambling

• Members strictly adhered to ANJ’s responsible gaming guidelines.

• Operators maintained transparency and honored their commitments to safe play.

• The association continues to promote ethical and compliant gambling practices.

Béraud also highlighted the urgent need to combat illegal gambling operators. These unlicensed entities operate freely, undermining the efforts of regulated operators to maintain a fair and responsible gambling environment.

Measures Needed to Strengthen the Market

• Implement stricter enforcement against unlicensed platforms.

• Reevaluate tax policies to support legal operators.

• Consider the introduction of a regulated online casino market.

This situation poses a significant threat not only to the integrity of the legal gambling industry but also to the welfare of 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 fueling the rise in illegal gambling. Strengthening enforcement measures, revising tax policies, and considering online casino regulation could be key steps toward building a stronger and more sustainable gambling ecosystem in France.