ARJEL’s latest figures show the French sports betting market declined 23% compared to the same period last year. Sports gross gaming revenue dropped 24% from €38m to €29m. Horse racing saw no such decline as gross gaming revenue for that part of the market was up 77% to €69m. This is the same sector of the market that Pari Mutuel Urbain (PMU) continues to enjoy and may explain why the figure is such a favorable one.
It’s the second time that the sports betting market has shown a decline and has led key figures to fear that unregulated operators will come back to the fore. Jean-Francois Vilotte, president of ARJEL, told Le Figaro the current system “Is near certain to lead to a decrease in tax revenues for the State in the medium to long term and the illegal operators getting back to taking market share, which would be a concern for the regulator and the Treasury.”
The comments could point to the market seeking a change to the taxation system so that it’s based on gross gaming revenue and not amounts staked. Criticism of the current regime has been around for some time with Stephane Courbit commenting that “the worst online gambling laws in Europe” were killing his company’s business. It seems that continual declines in the market may finally force France’s hand. It’s what happens when the regime in place is originally laid out so much in favor of the former duopoly the FDJ and PMU held so that other firms find it neigh-on impossible to turn a profit.
