Research conducted by l’Autorité Nationale des Jeux (ANJ), the French gambling regulator, revealed the existence of 510 illegal websites that are attracting traffic. Among these websites, 21 alone are estimated to generate 60% of the total traffic related to illegal gambling. A study carried out by PwC estimated that the gross gaming revenue (GGR) generated from illegal gambling ranges between €748m and €1.5bn. This accounts for 5% to 11% of the entire gambling market, which had a value of €12.9bn in 2022.
A significant concern is that 79% of the gross gaming revenue (GGR) generated by illegal online gambling comes from high-risk gamblers. The study identified that the main motivations for players engaging in illegal gambling include the absence of betting limits or identity verification. These players are also enticed by the potential for higher winnings and a wider selection of games.
The study found that half of the identified operators of illegal gambling websites are companies registered in Curaçao. Furthermore, online casino games and slot machines are estimated to represent 50% of the traffic involved in illegal online gambling.
ANJ commissioned this study to measure and understand consumption patterns associated with illegal online gambling. To combat this issue, ANJ has unveiled an action plan that includes reporting to authorities to initiate legal proceedings against operators based in Curaçao or Cyprus. ANJ will also take measures to warn software publishers and hosting providers about their involvement with illegal sites. It will further target payment service providers facilitating financial transactions between illegal operators and players. In addition, ANJ aims to enhance information sharing and best practices with other European counterparts through the GREF. Lastly, ANJ plans to raise public awareness about the risks of illegal gambling.
In 2022, France’s gambling market achieved a record gross gaming revenue (GGR) of €12.9bn, reflecting a 20% YoY growth. Online gambling contributed €2.17bn in GGR, with €1.38bn from online sports betting, €442m from online poker, and €346m from online horse racing bets.