EGBA Calls On France To Regulate Online Casino Amid Growing Black Market Concerns
December 6, 2023
The European Gaming and Betting Association (EGBA) is urgently appealing to the French authorities to regulate online casino games following the revelation of a concerning new study indicating that France possesses one of the largest online gambling black markets in the European Union.
The study, commissioned by the national gambling authority l’Autorité Nationale des Jeux, underscores the magnitude of France’s black market for online gambling, estimating its annual gross gaming revenue (GGR) at up to €1.5 billion. This figure is equivalent to nearly half of France’s regulated online gambling revenue, signaling a critical issue that demands immediate attention.
France, despite being a significant player in the European gambling sector, is one of only two EU countries with a ban on online casino games, inadvertently fostering a black market fraught with risks. The recent PwC-conducted study reveals that websites offering online casino games, along with slots, contribute up to 50% of France’s black market website traffic. These platforms operate outside French regulations, posing threats to the safety of players who lack legal recourse and basic protections, such as self-exclusion.
Approximately 3 million French players utilize black market websites at least once a month, with the study highlighting that high-risk players account for 79% of the GGR generated by these individuals. This alarming statistic emphasizes the vulnerability of players who are exposed to unregulated websites lacking essential safer gambling measures.
To address this critical issue and create a secure gambling environment, EGBA implores the French authorities to reevaluate the existing ban on online casino games. In alignment with the established French regulation of online sports betting, EGBA advocates for the implementation of a multi-licensing model, proven to be the most effective method for reducing black markets in online gambling.[4]
Maarten Haijer, Secretary General of EGBA, commented, “The scale of France’s online black market is alarming, and we believe it is one of the EU’s largest online gambling black markets, alongside Germany and Italy. The country’s prohibition of online casino is clearly a big part of the problem. Given the popularity of online casino, and the need to protect consumers from the risks of the black market, it is imperative that the French authorities urgently reassess their current ban on online casino games. The ban is counterproductive and fails consumers. By regulating online casino games through a multi-licensing model, France would better protect its consumers, regain more control over its online gambling market, and secure vital tax revenues. The best way to tackle a black market is to establish a competitive regulated market alternative. The time to act is now.”
