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The European Gaming and Betting Association expressed concern over the results of a recent study on the size of France’s black market in online gambling. The study was commissioned by France’s national gambling authority, l’Autorite Nationale des Jeux. It estimates that the black market in France for online gambling is worth EUR1.5 billion per year, equivalent to almost half of France’s regulated revenue from online gambling. The study suggests that France is home to one of the largest black markets for online gambling in the EU. To address this problem, EGBA has called on the French authorities end their ban on online casino gaming.
France, despite being one of Europe’s largest gambling markets, is only one of two EU nations that have banned online casino games. This has created a black-market with all the inherent risks. PwC’s new study found that online casino websites are the major contributors of France’s online blackmarket. Along with slots, they account for 50% of France’s website traffic. These websites are not governed by French law and, while there is a demand for them in France, they operate without any protections or legal recourse. Many of them also threaten the safety of French users, as many do not offer them minimum protections such as self exclusion.
Around 3 million French players visit black market websites on average at least once per month, according to the study. The study revealed that 79% of GGR generated on the black market was from high-risk players. This means vulnerable players are exposed to unregulated, unsafe websites with no protection.
To protect these players and create a safe environment for everyone, EGBA urged French authorities to reassess their ban on online casinos and to take the necessary measures to ensure a safe, regulated gambling environment. This is in line with the French regulations already established for online sports betting. This regulatory framework must be based on the multi-licensing system, which allows several operators to obtain licenses for business-to customer gambling.
The size of France’s black market for online gambling is alarming. We believe that France is among the largest black markets in Europe, along with Germany and Italy. It is clear that the country’s ban on online casino games is a major part of the issue. The French authorities must urgently review their current ban of online casino games, given the popularity of this game and the need for consumers to be protected from the dangers of the black-market. This ban is counterproductive, and it fails the consumers. France could better protect consumers and gain control of its online gambling market by regulating online casino through a multilicensing system. It would also secure crucial tax revenues. To combat a black-market, it is best to create a competitive and regulated alternative market. Maarten Haijer said that the time to act was now.
