The level of scrutiny and regulatory oversight of online operators’ marketing activities across European markets has significantly increased in recent years. This trend can be observed in Great Britain, where eight Premier League clubs in England alone have gambling operators as shirt sponsors. Italy and Spain have gone even further, with Italy banning bookmakers and casinos from major advertising platforms and Spain set to introduce a similar ban. On the other hand, France has taken a different approach, allowing operators to advertise on radio and TV while receiving complaints about the volume of online bookmaker adverts during half-time breaks. Regulated operators argue that marketing helps direct the majority of players to legal betting and gaming sites, although context is important. For instance, a recent report highlighted the €1.4bn unregulated online casino industry targeting French players, which put pressure on EU regulators. However, the same report demonstrated that legal advertising is not always necessary to develop a substantial vertical. Black and white hat SEO and online advertising are effective in developing a strong, albeit unregulated, iGaming activity in a highly regulated market.
In late January, France’s igaming regulator, the Autorité Nationale des Jeux (ANJ), expressed its concerns regarding the marketing practices of the national lottery monopoly, La Française des Jeux (FDJ), and its horse racing equivalent, Pari-Mutuel Urbain (PMU). ANJ highlighted that these operators should adhere to certain limits and avoid glamorizing gambling or giving it an overly positive image. ANJ’s monitoring committee also raised concerns about FDJ’s and PMU’s marketing strategies in relation to personalization, customer loyalty, and targeting younger demographics. The committee warned that these strategies could lead to an increase in the intensity and frequency of consumers’ betting and gaming habits.
Given the competitive pressures and the impact of the pandemic on their retail activities, FDJ and PMU are focused on reforming and rejuvenating their client base. Both companies aim to attract a younger (online) player base and diversify their offerings. However, they must strike a balance between marketing their products, building their appeal, and preventing problem gambling and underage gambling. As part of their marketing efforts, FDJ emphasizes responsible gaming and allocates 10% of its TV advertising budget to promote responsible gaming, a commitment not made by other French operators. Similarly, PMU is dedicated to preventing underage and problem gambling, as well as fighting money laundering.
Despite the pressure on operators to recover lost revenue due to the pandemic, there is little sympathy for FDJ and PMU from licensed private operators in France. These operators point out the commercial and regulatory advantages enjoyed by the national operators and highlight discrepancies in the level of scrutiny. ANJ’s expanded role and oversight of the majority of France’s gambling sector, including all FDJ and PMU retail outlets, demonstrate the regulator’s commitment to its stated aims. The upcoming months will be interesting to observe, particularly if PMU and FDJ struggle to regain market share in the online sports betting vertical.
