French online gambling industry fragile, uncertain about the future

The Association Française du Jeu en Ligne, a French trade body representing the interests of remote gambling operators, has issued an appeal to the government for tax reform and wider regulation, commenting that after five years of regulation the industry remains “fragile” and uncertain about its future.

Whilst many of the government’s goals regarding the legalisation and regulation of online gambling in France have been achieved, the elimination of illegal and unlicensed competition from external operators has not been effective and remains a threat that needs attention, AFJEL observed, noting that research in 2013 had shown that 45 percent of French players still preferred offshore (illegal) gambling sites.

The Association recommends that government:

* Reviews the high taxation level; French operators have a 46 percent of gross gaming revenue tax burden, compared with 20 percent in Denmark, 11 percent in Belgium and 15 percent in the United Kingdom. By switching to a tax on gross profits better commercial viability could be achieved, it said.

* Reviews the 85 percent PMU domination of the online pari-mutuel vertical, which has not been properly opened to fair market competition.

* Permit regulated and licensed online activity in casino games.

* Widen the scope of online poker and sports betting beyond the French ring-fenced market to generate more player liquidity.