French Gambling Regulator Imposes Fines for World Cup Payout Ratio Violations

Hefty Penalties for Leading Operators

The ANJ has issued fines ranging from €5,000 to €150,000 to eight online sportsbooks for surpassing the maximum payout ratio of 85%.

While the regulator refrained from naming specific recipients, French media outlets, including Les Echos, reported that market leaders Betclic and Winamax were each penalized €150,000.

Unibet, the flagship brand of Kindred Group, faced a €100,000 fine. Other operators, including PMU (€15,000) and NetBet (€10,000), received comparatively smaller penalties.

These penalties stem from operator activities during 2022, a year marked by unprecedented betting levels, particularly during the World Cup in Qatar. With France’s national football team reaching the finals, wagering activity reached record highs. Operators argued that the sheer volume of bets made it challenging to adhere to payout ratio limits.

The ANJ emphasized that the fines were proportional to the extent of the payout ratio violation, the operator’s market significance, and prior infractions. The recent sanctions follow a series of similar actions in April 2023, where seven operators faced penalties for breaching payout regulations.

In the World Cup betting frenzy, bookmakers reportedly paid out more than €600 million in stakes. Violations ranged from minor breaches (85.1%) to significant excesses (90.3%), with some operators exceeding the legal limit by as much as 5.3%.

France’s gambling laws set the maximum payout ratio at 85% when regulating its online sports betting (OSB) market in 2010. The restriction aims to combat excessive gambling, deter money laundering, and prevent terrorist financing. However, this ratio is notably lower than those in other European markets, where payouts can reach up to 97%.

This discrepancy has led to persistent criticism from operators. Many argue that the regulation forces them to offer less competitive odds, putting them at a disadvantage against illegal operators who entice players with higher bonuses and better payout rates.

New Tax Hikes Add to Operators’ Challenges

In addition to the payout ratio controversy, French operators are grappling with new tax increases approved by the Senate. The revised tax rates include:

• Lottery GGR taxed at 10%.
• Retail sports betting taxes rising from 7% to 10%.
• Online betting taxes increasing from 10.5% to 15%.

These adjustments follow Prime Minister Michel Barnier’s proposal to raise taxes across all gambling sectors as part of the 2025 national budget. The government anticipates generating an additional €500 million annually from these measures.

The combination of strict payout ratios and higher taxes presents unique challenges for French operators. Unlike in other European markets, where operators enjoy greater flexibility, France’s regulatory environment is seen as less accommodating.

This has raised concerns about the potential growth of the unregulated gambling market, as players seek better value from illegal platforms.