The Association française des jeux en ligne (AFJEL), a French trade group focusing on the gambling industry, has reported that the nation’s online legal market has now ceded further ground to the unregulated market, with the majority of gamblers and gambling spending taking place with unauthorized operators.
AFJEL sounds alarm over growing share of the gambling market in France
The information was shared in an interview with Le Parisien, a French media outlet, and on the trade group’s LinkedIn page.
According to AFJEL, some 5.4m players are playing at unregulated online gambling websites, with €2bn in gross gaming revenue generated there so far in 2205 alone. Yet more worryingly, the black market is also expanding rapidly in the country, with the trade group taking a historic look at its growth over the past several years.
Citing a PwC study from 2023, AFJEL noted that the number of players turning to such websites has increased by roughly 35% - up from 3.5m players who engaged with illegal gambling websites in 2023.
The AFJEL said that the black market was harmful not only to state coffers and legal operators but also to the players. According to the trade group, at least 3m players are experiencing gambling addiction, and 62% of players in the illegal marketwere engaging in excessive gambling behavior.
What is worse, notes the organization, is that 82% of the players are not actually aware that they are engaging in an illegal form of gambling.
To illustrate the risks of registering at offshore gambling websites that are not regulated in France, AFJEL also noted that 70% of players had experienced cybersecurity incidents, such as data theft, financial fraud, or phishing.
Even more importantly, 90% of those who gamble with illegal websites claim to have started after they have seen unsolicited gambling ads, making them take the jump and register at the platforms, unaware of the potential risks.
Missed tax opportunities, growing social cost
AFJEL argues that it is not only players who pay the cost and carry the toll. France’s tax office is also on the hook, missing out on realizing €1.2bn worth of tax revenue, based on the country’s existing tax rates for sports bets.
However, it is not just unrealized opportunities that AFJEL warns are the issue here. The social costs borne by France are also compounding the issue and are estimated at €4bn by the trade group, which urges immediate action.
The findings indicate a growing problem that needs to be addressed through regulation and proactive measures that raise awareness about the dangers posed by the illegal online gambling segment.
