Date: 21.11.2024

by Tomasz Jagodziński

France Faces Growing Pressure to Regulate Online Casinos

As the illegal online casino market in France continues to grow, generating revenues estimated at €2 billion annually and attracting millions of players, industry stakeholders are urging action. At the recent AFJEL annual conference, experts discussed the challenges and opportunities of regulating the iCasino sector to address responsible gambling, combat illegal operators, and provide a competitive framework for licensed companies.

The Growing Problem of the Illegal Market

Nicolas Béraud, CEO of Betclic and President of AFJEL, described the situation as unsustainable for licensed operators. “The status quo is no longer tenable,” he stated, highlighting that while licensed operators are constrained by current regulations, unlicensed online casinos thrive.

Béraud emphasized that the illegal market already operates at the scale of a mature industry, with an estimated four million players and €2 billion in revenue. He pointed out the ease with which players can find illegal sites online, often without realizing their unregulated status.

Balancing Regulation and Responsible Gambling

Isabelle Falque-Pierrotin, President of the Autorité Nationale des Jeux (ANJ), outlined the challenges of regulating the iCasino market. She expressed concern about the potential impact of introducing more addictive gambling products into a country with already significant problem gambling rates—1.4 million problem gamblers and 400,000 excessive gamblers.

Falque-Pierrotin warns that regulating online casinos will help, but the benefits may not be as obvious. She also highlighted the potential consequences for land-based casinos, noting that regulating online casinos would be a significant shift, comparable in importance to the introduction of online sports betting and poker in 2010.

Lessons from Denmark

Adding an international perspective, Anders Dorph, CEO of Denmark’s Gambling Authority (Spillemyndigheden), shared insights from his country’s efforts to combat illegal gambling. He emphasized the importance of providing a robust legal alternative to undermine unlicensed operators effectively.

“The most important part of fighting illegal gambling is to make sure you have a legal offer that gives the opportunity to have a sound legal market,” Dorph said. He also noted the effectiveness of measures like DNS blocking, which has significantly reduced the number of illegal sites in Denmark.

“DNS blocking illegal pages is like hunting rabbits,” Dorph admitted. However, he highlighted the success of Denmark’s approach, stating that it has led to “13 times fewer illegal sites,” demonstrating that such measures can make a meaningful impact.