Gamblers in France’s unlicensed market account for more that 10 percent of the total bet in the country, as much as €1.5 billion (£1.28 billion /$1.62 billion), according to the country’s gambling regulator l’Autorité Nationale des Jeux (ANJ), CDC Gaming Reports disclosed December 4.
ANJ has found 510 illegal sites operating, with 21 of them estimated to produce about 60 percent of the black market traffic.
The investigation, done from January to March 2023 from 11,000 participants was conducted by PwC (PricewaterhouseCoopers LLP). It calculates the GGR generated by the dark sector to be from €748 million and €1.5 billion, between 5 percent and 11 percent of the total market, which was estimated to be €12.9 last year.
ANJ is concerned that nearly 80 percent of the revenue generated in the black market comes from high-risk players, many of whom are attracted by the lack of identity checks. They are also drawn by the possibility of higher winnings.
More than half of these sites are registered in Curaçao, a Caribbean Dutch dependency.
France has 18 licensed operators.
A spokesman for the ANJ declared, “The scale and risks associated with illegal gambling justify even more vigorous measures to combat it, in addition to those already being taken by the ANJ,” and added that illegal operators often don’t pay out winnings or protect the vulnerable population.
In 2023 ANJ blocked more than 200 websites, and plans to report those websites to their host countries, mainly Curaçao or Cyprus, to pressure them to take action. It also plans to take action against software publishers who sell to those sites, and to prosecute anyone who facilitates financial transactions with illegal operators.
Another action France might take is to create an iGaming monopoly, at least according to gaming sector journalist Jake Pollard, Casino.org reported December 5.
Pollard wrote in his newsletter Gaming & Co that the government is considering giving the entire sector to operator Française des Jeux (FDJ). Pollard learned that FDJ and ANJ are discussing the issue and contemplating regulations to create the monopoly.
Such a development would likely invite lawsuits from industry members left out of it. French lawmakers have for months been debating regulating “Jonum” which in French stands for “games with monetizable digital objects,” which would include cryptocurrency and blockchain gaming.
These talks have included the French Association of Online Gaming (AFJEL) and Casinos de France (CdF). Unconfirmed reports say that FDJ might launch online gaming early next year.
Although critics say the government has not shown an interest in regulating online casinos, it has talked about a plan to allow brick and mortar casinos to offer online games. They would get a five-year head start over anyone else.
The reason for working with FDJ is that it was formerly a state-run-operator and the government retains a quarter share of the company. If FDJ is given a monopoly, that would provide the government with a new revenue stream.
