In a surprising turn of events, the legal sports betting market in France has experienced a significant decline during Euro 2024, while the illegal market has surged. According to the French Online Gaming Association (AFJEL), the legal market’s performance fell short of expectations, with stakes remaining stagnant compared to previous tournaments. In contrast, the illegal market has thrived, attracting a growing number of bettors. This development raises concerns about the effectiveness of current regulations and the challenges faced by legal operators.
Stagnation in the Legal Market
The legal sports betting market in France has faced a challenging period during Euro 2024. Despite high expectations, the market showed no growth compared to Euro 2021 and experienced a substantial 25% decline from the 2022 World Cup figures. The National Gaming Authority (ANJ) had predicted a record €1 billion in stakes, but the actual figures came in at approximately €500 million. This stagnation is particularly concerning given the strong performance of the French national team, which typically boosts betting activity.
Several factors have contributed to this decline. High taxes and regulatory constraints have made it difficult for legal operators to compete with their illegal counterparts. Additionally, the lack of a regulated online casino market in France has driven players towards illegal platforms that offer more attractive options. The continuous decline in the number of unique players, which dropped by 5.3% in 2023, further highlights the challenges faced by the legal market.
Rise of the Illegal Market
In stark contrast to the legal market, the illegal sports betting market in France has flourished during Euro 2024. For the first time since the establishment of the regulated market in 2010, the number of illegal players surpassed those in the legal market, reaching 4 million in 2023. Illegal online casino sites have capitalized on the tournament by offering sports betting without any regulatory oversight or player protection measures. These platforms have attracted players with enticing odds and the absence of legal restrictions.
The AFJEL has expressed serious concerns about this trend. Nicolas Béraud, President of AFJEL, stated that the illegal market continues its strong expansion, cannibalizing the online sports betting sector by diverting players from the legal offer. Despite efforts by the ANJ to block illegal sites, these measures have proven ineffective. Unlicensed operators act with complete impunity, further exacerbating the issue and leaving millions of players exposed to significant risks.
Challenges and Future Outlook
The decline in the legal sports betting market and the rise of the illegal market present significant challenges for regulators and legal operators in France. The current regulatory framework and high taxes have made it difficult for legal operators to compete effectively. The absence of a regulated online casino market further compounds the problem, driving players towards illegal platforms that offer more attractive options without the burden of taxes or regulatory constraints.
To address these challenges, there is a need for a comprehensive review of the regulatory framework governing sports betting in France. This includes considering the introduction of a regulated online casino market and reducing the tax burden on legal operators. Strengthening enforcement measures to combat illegal gambling is also crucial. Collaboration between regulators, legal operators, and industry stakeholders is essential to create a more competitive and secure betting environment.
The future of the legal sports betting market in France depends on the ability to adapt to these challenges and implement effective solutions. By addressing the issues driving players towards the illegal market and enhancing the attractiveness of the legal offer, it is possible to reverse the current trend and ensure a thriving and secure betting environment for all players.
