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French licensed gambling operators lost $5M in 2015

FRENCH OPERATORS LOST EURO 5 MILLION LAST YEAR
 
Regulators numbers show that in general French licensed operators lost money, thanks to restrictive regulations, a ring-fenced market and high taxation.
 
Numbers released by the French online gambling regulator ARJEL have illustrated the continued folly of a ring-fenced and restricted online gambling market saddled with a harsh and operator-unfriendly tax regime.
 
The figures show that collectively online operators lost Euro 5 million last year, with only horse racing delivering an operating surplus.
 
Even sports betting, usually a star punter attraction, generated unsatisfactory operating profits, with just five of the 11 licensed operators reporting profits, whilst only 2 of the 9 poker operators prospered.
 
From a cumulative perspective, French licensed operators have incurred operating losses of Euro 471 million since the market was liberalised six years ago; broken down as sports betting Euro 222 million, poker Euro 206 million; and racing Euro 43 million.
 
ARJEL has reiterated its three-pronged suggested solution:
 
* Consider a more benign tax regime;
 
* Allow operators to offer a more diverse (read casino gaming) online choice of gambling;
 
* Allow poker operators to pool their players with other regulated and like-minded nations.
 
The market potential, illustrated by punter interest, is clearly present. ARJELs 2015 numbers show that:
 
*  Sports betting turnover was up 30 percent y-o-y at Euro 1.44 billion, with H1-2016 turnover already up 60 percent at Euro 1.1 billion;
 
* Sports revenue of Euro 270 million last year - up 19 percent.
 
However, online poker is in difficulties, with turnover declining 4 percent last year to Euro 232 million, and cash game spend down 14 percent at Euro 101 million. Tournament stakes show a somewhat brighter picture - up 14 percent at Euro 131 million.
 
Worryingly, player numbers are shrinking, too - in 2015 active player numbers sank almost 4.5 percent to 235,000 in the ring-fenced market.
 
In 2015 the online horse racing vertical suffered its worst year since regulation, with both turnover and revenue slipping for the third consecutive year.
 
Turnover declined 2 percent y-o-y to Euro 1 billion, although revenue remained relatively steady compared to the previous year at Euro 254 million. So far this year the portents for the vertical are not good - wagering has declined by 10 percent in H1-2016.
 
Overall, mobile betting is apparently becoming more popular with French punters, with 53 percent of sports wagers delivered from the mobile channel last year; 46 percent of the poker action, and 36 percent of racing stakes.
 
The French online gambling market at the end of 2015 comprised 16 operators with 29 licenses for sports betting (11), poker (10) and racing (8).

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Gambling News :

Interwetten 2016 Earnings Results - Privately-owned online sports betting operator Interwetten delivered robust full year results for the 2016 fiscal period, in which the company has almost achieved doubling its revenues over the past four years, success it attributes to its in-house developed platform

EU Online Gambling Tax Harmoney Dead - Tax expert says European Court of Justice Attorney General's opinion on UK-Gibraltar litigation signals that EU courts are happy for individual member states to impose their own laws on online gambling.

Jack Lam Facing Big Fines in the Philippines - It's going to be costly for Macau online gambling and junket tycoon Jack Lam to return to the Philippines following his rather hurried departure last year with allegations of economic sabotage, bribery and tax evasion swirling around him.

Walter Merricks Term As Gambing Commissioner Extended - The UK Government has extended Walter Merricks’ term as Commissioner of the Gambling Commission for a further year, ending December 31, 2017.

Loot’enKhamun Pays $3.8 Million Jackpot - A London-based construction worker’s year got off to a great start when he hit the Loot’enKhamun jackpot at bwin casino.

PlaySugarHouse To Carry Konami Content - Content provider Konami will provide its Gypsy Fire and Fortune Stacks slot games to Rush Street Interactive-operated PlaySugarHouse.com on an exclusive basis in the New Jersey real-money online and mobile wagering market.

ITF TERMINATES BETWAY SPONSORSHIP DEAL - The International Tennis Federation (ITF) has reportedly terminated Betway’s three-year sponsorship partnership as an extension to their anti-match fixing and sports integrity policy.

GSA To Launch European division - The expansion enables the GSA to better focus on the regional needs of its members outside of North America and underscores its recognition and commitment to growing European membership.

Paddy Power Trading Update - Company prevails despite adverse sports and US election results; Trump success cost the group GBP 5 million, whilst punter successes took another GBP 40 million in Q4-2016.

Tabcorp SunBets project - The details were revealed this week in an IT News article quoting Tabcorp's chief information officer, Kim Wenn, who described the SunBets project as Tabcorp's biggest global venture yet.

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