EGBA Warnings About the Urgency of Regulating the Online Casino Market in France
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6 Dec 2023 •
Reading time: 3 minutes Faced with the growing threat posed by the black market for online gambling in France, the European Gaming and Betting Association (EGBA) is making an urgent call to French authorities. The results of a study reveal a black market estimated at 1.5 billion euros, making France one of the negative leaders within the European Union when it comes to the black gambling market.
To combat this situation, the EGBA recommends an urgent revision of the ban on online casino games in France. Building on the licensing model already in place for online sports betting, this would be the best strategy to significantly reduce illegal activities and protect consumers.
Online Casinos Welcome?
The European Gaming and Betting Association (EGBA) is sounding the alarm about the worrying results of a new study on the extent of the black market for online gambling in France. Commissioned by the National Gaming Authority (ANJ), this study estimates that the French black market for online gambling could reach up to 1.5 billion euros in annual gross revenues, which is almost half of the income of the regulated sector in the country. These figures suggest that France, one of the few EU countries, along with Cyprus, that has completely banned online casino games, could have one of the largest black markets for online gambling in the world.
The PwC study shows that online casino games are big players in the black market and represent up to 50% of the traffic coming from illegal sites in France. Despite the clear demand, these platforms operate outside the French legal framework, exposing players to risks without benefiting from legal protection or self-exclusion mechanisms.
According to the conclusions of the study, about 3 million French players use these illegal sites at least once a month. Even more worrying is that it points out that high-risk players generate 79% of the gross revenues of these sites, exposing vulnerable players to unregulated platforms without mechanisms that offer protection against excessive gambling.
Maintaining Player Safety Above All
In light of these findings, the EGBA urges French authorities to reconsider the ban on online casino games, with the goal of curbing the growth of the black market and creating a regulated and safe environment for online players.
Maarten Haijer, Secretary-General of the EGBA, said: “The size of the online black market in France is alarming, and we believe that it is one of the largest in the EU, alongside Germany and Italy. The ban on online casinos is clearly a big part of the problem. By regulating these games through the licensing model, France could better protect its consumers, regain control of its online gambling market, and ensure tax revenues for its treasury. The best way to combat a black market is by establishing a regulated and competitive alternative. The time to act is now.” This approach would allow various operators to obtain business-to-customer licenses, significantly reducing the black markets for online gambling.
A Growing Black Market Across Europe
The worrying growth of the black gambling market in Europe is a wake-up call for authorities and regulators. Recent studies highlight alarming figures, revealing the growing size of illegal casinos. Without restrictions, they can offer a range that easily escapes all control and regulation.
Italy and Germany also came under scrutiny for the same reason. Italy has seen a spectacular growth in the number of illegal casinos since the total ban on advertising for gambling. While in Germany, a study by economist Gunther Schnabl shows that in March 2023, only 50.7% of gambling went to legal offerings, with nearly a third of consumers gambling in casinos without local licenses.
The challenge lies in balancing regulation to prevent illegal actors from exploiting the system’s shortcomings, while at the same time ensuring a regulated industry that protects players. The ball is now in the court of the legislators to restore the integrity of the European gambling market.