Illegal Gambling In France Worth €1.5bn per year

Illegal gambling in France has emerged as a significant issue, with its market potentially worth up to €1.5bn. The staggering figure accounts for more than 10% of the total wagered across the country each year. A recent study conducted by the French gambling regulator, l’Autorité Nationale des Jeux (ANJ), revealed that there are 510 illegal websites generating substantial traffic, with 21 of them alone estimated to generate 60% of the illegal gambling traffic.

The study, carried out by PwC, delved into the estimated gross gaming revenue (GGR) generated by illegal gambling, which ranges between €748m and €1.5bn. This constitutes between 5% and 11% of the total gambling market, which reached a record-breaking €12.9bn in 2022.

One of the most concerning findings of the study is that 79% of the gross gaming revenue (GGR) generated by the illegal online gambling market comes from high-risk gamblers. These individuals are attracted to illegal gambling due to the absence of wagering limits and identity checks. Moreover, they are enticed by the expectation of higher winnings and a broader range of available games.

The study also revealed that half of the identified illegal gambling websites are owned by companies registered in Curaçao. Furthermore, online casino games and slot machines account for approximately 50% of the overall illegal online gambling traffic.

In light of these findings, l’Autorité Nationale des Jeux (ANJ) has unveiled an action plan to combat illegal gambling effectively. While France has 18 ANJ-licensed operators and the FDJ, which can legally offer online gambling, unlicensed operators rarely pay out winnings and fail to protect minors and other vulnerable individuals.

To address this issue, ANJ plans to take several actions. Firstly, it will report to the authorities to initiate proceedings against operators in Curaçao and Cyprus who run these illegal sites. Currently, these operators operate with impunity, beyond ANJ’s jurisdiction. ANJ will also warn software publishers and hosting solution providers associated with illegal sites. Additionally, ANJ will take action against payment service providers facilitating financial flows between illegal operators and players. ANJ aims to enhance information exchange and share best practices with its European counterparts through the GREF. Lastly, ANJ will prioritize raising public awareness of the dangers associated with illegal gambling.

Despite the challenges posed by illegal gambling, the legal gambling market in France experienced a record-breaking year in 2022. The gross gaming revenue (GGR) reached an impressive €12.9bn, marking a 20% year-on-year increase. Online gambling played a significant role in this growth, contributing €2.17bn to the overall GGR. This included €1.38bn from online sports betting, €442m from online poker, and €346m from online horse racing bets.