France’s Regulated Gambling Sector Faces Offshore Competition

France’s regulated gambling sector is experiencing stagnation as offshore operators capture a significant majority of online searches, according to a report by Blask. Authorities continue to combat unlicensed gambling, but consumer engagement with offshore platforms remains high.

What Happened

A new report by AI market analytics platform Blask revealed that most French consumers continue to engage with offshore gambling operators (GamblingNews). Between September 29 and October 12, online searches for offshore iGaming brands represented 83.9% of all online gambling searches in France, an increase from 67.5% between September 7 and September 20. This trend occurred while France’s licensed gambling sector experienced relative stagnation (GamblingNews).

French regulations prohibit online casino games, directing all such traffic towards unregulated offshore operators, according to GamblingNews. The Autorité nationale des jeux (ANJ), France’s gambling regulator, routinely takes action against offshore operators, including collaborating with internet service providers to block illicit platforms. Despite these efforts, Blask’s data indicated that nine out of the ten most searched operators in France were offshore, with gtBet and Leon being the two most popular brands. Betclic was identified as the sole licensed operator among the top ten, ranking eighth (GamblingNews).

Key Details

• Online searches for offshore iGaming brands comprised 83.9% of French online gambling searches from September 29 to October 12, an increase from 67.5% between September 7 and September 20, as reported by Blask (GamblingNews).
• France’s regulated gambling industry saw only a 0.5% year-on-year revenue increase in the first half of the year (GamblingNews).
• Nine out of the ten most popular gambling operators in France were offshore, with Betclic being the only licensed operator in Blask’s top ten list (GamblingNews).
• French regulations restrict online gambling to sports betting, horse racing bets, and poker, excluding online casino games (GamblingNews).

Why It Matters

The consistent dominance of offshore operators in online search activity suggests a challenge for France’s regulatory framework in achieving effective channelization of gambling traffic. The ANJ’s efforts to block unlicensed platforms, while ongoing, appear to be offset by a sustained consumer preference for offshore options, particularly given the prohibition of online casino games within the regulated market (GamblingNews, Regulating gambling in France in the digital age: from casinos to Web3 | IMGL). This dynamic contributes to the regulated sector’s stagnation, with operator revenues rising only 0.5% year-on-year in the first half, despite a boost from online sports wagering due to events like the World Cup (GamblingNews).

The prevalence of illegal gambling, which reportedly surpasses the regulated sector in France, underscores the pressure on authorities to implement reforms (France’s Illegal Gambling Market Surpasses Regulated Sector as Calls for Reform Grow – iGamingToday.com). Past enforcement actions, such as the dismantling of a $1.2 billion illegal online gambling network, illustrate the scale of the challenge authorities face (GamblingNews).

What’s Next

The data suggesting a continued struggle with channelization and the relative stagnation of the regulated industry may indicate a need for new reforms (GamblingNews). Authorities are expected to persist in their efforts against unlicensed gambling operators and platforms, as evidenced by past actions such as blocking Polymarket (GamblingNews).