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French Online Gambling Market Q2-2016

MIXED BAG IN FRENCH MARKET SECOND QUARTER RESULTS
 
Poker decline continues, largely impacted by drop in cash game vertical.
 
The French online gambling market delivered a mixed bag of second quarter results, for the three month period ending June 30, 2016, with sports betting predictably a star performer due to the UEFA Euro 2016 championship.
 
Sports betting stakes reached Euro 585 million, an all time high since the market’s opening in 2010 and a 73 percent increase.  Gross gaming revenue reached Euro 91 million, up 45 percent over Q2/2015 while player bonuses were up 122 percent to Euro 16.1 million.
 
Horse race betting fell at a significantly sharper pace than that experienced in the first quarter 2016 with regulatory body ARJEL reporting betting stakes down 12 percent to Euro 218 million (Q2/2015: Euro 248 million) and a 10 percent decline in GGR to Euro 55 million (Q2/2015: Euro 65 million).
 
The rate of Return to Player was 74.7 percent, the lowest recorded in this sector since the market opened in 2010 but bonusing rose 21 percent to Euro 7 million (Q2/2015: Euro 5.8 million).
 
The online poker vertical continued its previous trajectory delivering a decline in cash games but increased activity in the tournament sector albeit at a slower pace than in previous quarters.
 
Cash game wagers reached Euro 853 million, 9 percent down compared to Q2/2015.  Conversely tournament entry fees increased 7 percent to Euro 450 million (Q2/2015: Euro 421 million).  The increase in tournament entry fees failed to offset the decline in cash game activity as was seen in Q1/2016.
 
Gross gaming revenue for total online poker declined 2 percent to Euro 53 million (Q2/2015: Euro 56 million) and player bonusing dropping markedly by 22 percent to Euro 11.6 million.
 
ARJEL’s full market report (in French) can be accessed here:  http://www.arjel.fr/IMG/pdf/2016T2.pdf



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