Impact of Euro 2024: Exploration of France's Unlawful Gambling Participants and Its Ramifications
In the French gaming landscape, the tale of the tape tells a curious story. As per iGB, the expected 1 billion euros from online wagers during a major event fell short, with only half being pocketed. This is a stark contrast to the 2022 World Cup, where bettors coughed up a staggering 900 million euros, aiming to see France reach the final.
The reasons for this dip are as clear as a sunny day in Provence. Although 3.6 million players hopped aboard licensed operators' carousels in 2023, a further 4 million opted for the wild rides of unlicensed operators. Experts from the French Online Gaming Association (AFJEL) predictably point the finger at inadequate regulation, excessive taxes, and a dearth of online casinos authorized under French skies. Unsurprisingly, the Euro 2024 tournament continued this trend, as the gambling market didn't grow in 2022 and 2023, and some companies even took a hit.
AFJEL's President, the affable Nicolas Boro, isn't optimistic about the effectiveness of blocking illegal sites in curbing the black market. "If Euro 2024 had the unexpected effect of delivering disappointing results for licensed operators, the illegal market is currently enjoying a robust expansion, swallowing up the online sports betting sector and enticing players away from the legal buffet," he observes. Illegal operators tend to lure players with tantalizing odds, and not all gamblers give a hoot about the risks.
However, the numbers paint a conflicting picture. France's gaming watchdog, the National Gaming Authority (NGA), boasts that the sector raked in a record-breaking GGR of 13.4 billion euros in 2023. These discrepancies are as common as baguettes and butter in the French pastry scene. In Germany, for instance, the regulators claim that the market is almost devoid of illegals, with such companies accounting for a paltry 4% of GGR. But critics retort that almost half of users prefer to take their chances with offshore operators.
But here's the kicker: the issue isn't specific to France. Across Europe, stricter regulations in countries like the Netherlands and the UK have pushed consumers towards unlicensed platforms offering fewer restrictions and more flexibility. Taxation and deposit limits in the Netherlands, for example, have driven revenue down for licensed operators like FDJ United, leading players to seek solace in unregulated havens. The rise of crypto casinos, which often operate beyond traditional regulatory walls, has only fueled this trend, providing consumers with a less restrictive way to roll the dice. So, the onus lies not just on the French market, but on the broader European market, particularly in countries like the Netherlands and the UK, to adapt to this new reality.
- In contrast to the 2022 World Cup, where a staggering 900 million euros were wagered online, the 2023 major event brought in half of the expected 1 billion euros, potentially due to the allure of unlicensed operators.
- The French gaming market didn't grow in 2022 and 2023, with some companies even experiencing losses, a trend that continues into the Euro 2024 tournament.
- AFJEL's President, Nicolas Boro, voices concern about the expansion of the illegal online sports betting market, as illegal operators attract players with lucrative odds and lax regulations.
- Across Europe, stricter regulations and increased taxes in countries like the Netherlands and the UK are driving consumers towards unlicensed platforms, such as crypto casinos, that offer fewer restrictions and more flexibility, leading to an overall challenge for licensed operators to maintain revenue.
