Illegal market outstrips licensed French gambling, AFJEL warns

The illegal gambling problem has reached a tipping point, L’Association Française du Jeu En Ligne (AFJEL) warned, with illegal players totalling four million in 2023, ahead of the regulated sector’s 3.6 million.

While French gambling regulator L’Autorite Nationale des Jeux (ANJ) predicted €1bn would be wagered on the tournament, AFJEL said around half of that figure was staked.

Instead, the association betting volumes were stagnant compared to the last European Championship in 2021. After that tournament, when France was eliminated in the second round, online punters wagered €343m. This would be increased to around €500m when La Francaise des Jeux’s retail network was included.

The amounts staked were also down 25% from the 2022 World Cup, AFJEL added, when €900m was bet as France reached the final.

AFJEL: French illegal gambling market thriving

The poor figures come after the illegal market last year outperformed the licensed market for the first time since the latter was created in 2010, according to AFJEL.

A PwC report published in December 2023 estimated that illegal gambling accounted for around 10% of the total French market. The lack of regulated online casino, coupled with high taxes, are regularly cited as challenges holding back the legal market.

AFJEL said the Euro 2024 figures follow a trend whereby there was no growth within the licensed market in 2022 and 2023. There has also been a 5.3% decline in unique players.

“This development, contrary to European trends and the digitalisation of the sector, confirms the massive diversion of players from the legal offer to the illegal market, the impact and danger of which cannot be precisely assessed at this stage,” AFJEL said.

Blocking illegal French betting sites “not working”

AFJEL president Nicolas Béraud said the figures “are the opposite of the supposed frenzy of online sports betting announced on the legal market.”

Béraud contended that the competition was a success for its members and the wider community from a player protection point of view. He said that members operated within ANJ guidelines and respected their commitments.

However, he warned that unlicensed operators are acting “with complete impunity” and said the blocking of illegal sites is failing to stem the illegal market’s growth.

Béraud said: “If Euro 2024 shows surprisingly low results for licensed operators, the illegal market is now continuing its very strong expansion by cannibalising the online sports betting sector by diverting players from the legal offer.

“Illegal online casino sites have offered, with complete impunity, a sports betting offer on Euro 2024 with very attractive odds and without any player protection measures.

“Despite the actions taken by the Regulator, the blocking of illegal sites is still not working.”

But ANJ figures suggest French market is thriving

Despite AFJEL’s concerns, ANJ figures suggest the French gambling market is thriving, hitting a record gross gambling revenue (GGR) of €13.4bn (£11.6bn/$14.3bn) in 2023.

France’s gambling turnover for 2023 was a 3.5% increase on 2022’s figures, with the ANJ noting that all market segments in the country saw GGR increase for the first time since 2019. However, the ANJ also acknowledged the market is growing slower than the European average of 5.5%.

Online sports betting revenue grew 6.4% year-on-year, reaching €1.5bn despite the lack of a major sporting event. Sports betting made up 63.3% of online GGR, with poker and horse racing accounting for 21.6% and 15.1% respectively.

Despite the rise in online GGR, the pool of unique players dropped by 7.3%, while the number of active accounts also fell by 3.9%.

The market continues to be dominated by the country’s former gambling monopolies, however. Lottery and retail betting giant La Française des Jeux (FDJ) and horse race betting specialist Pari-Mutuel Urbain (PMU) both saw growth in 2023, accounting for 62.7% of France’s total revenue.

FDJ’s 2023 growth was driven by point-of-sale sports betting and competing activities, which rose 10.4% in GGR on 2022. Those activities accounted for 16.2% of FDJ’s group GGR for the year and €1.1bn in gross profit.

PMU also saw its betting activity grow, although those increases slowed compared to years prior, with GGR at €1.7bn, just a 1% rise on 2022.