France’s gambling sector: record growth despite regulatory challenges
In 2023, France’s sports betting and gaming operators witnessed a significant milestone. Their gross gaming revenues (GGR) rose by 3.5 percent year-on-year, reaching a record €13.4 billion. This growth was observed across all market verticals, marking the highest level of activity ever recorded by the sector.
The national regulator, the Autorité Nationale des Jeux (ANJ), attributed this growth to a period of stabilization in 2022, linked to the Covid-19 pandemic. However, the ANJ also issued a reminder to operators about the need for responsible gambling practices. With major events like the Euro 2024 football tournament and the Paris 2024 Olympic Games on the horizon, operators were urged to ensure that intensification of playing patterns does not accelerate in 2024.
Comparison to overall European market
The growth of the gambling sector in France, as indicated by a 3.5 percent increase in Gross Gaming Revenues (GGR) to €13.4 billion in 2023, is noteworthy. The European gambling market, which includes both online and offline sectors, accounts for 49 percentof the global market. The European Gaming and Betting Association (EGBA) provides an overview of the online gambling operations of its members within the EU and UK. However, specific growth rates for individual countries in 2023 are not readily available.
In terms of the sports betting industry, Europe is currently estimated to be worth $44.5 million (approximately €41.5 million), with forecasts predicting its value to reach $89.9 million (approximately €83.9 million) by 2030.
While these figures provide a broad overview, the growth rates can vary significantly between countries and sectors (online vs offline, types of gambling, etc.). Therefore, while France’s growth is impressive, it’s important to consider it in the context of these broader trends and variations across Europe.
The growth of France’s gambling sector is in line with the general upward trend observed in Europe, albeit with country-specific and sector-specific variations. The challenge for all countries, including France, will be to balance this growth with the need for responsible gambling practices. This is particularly relevant given the upcoming major sporting events like the Euro 2024 football tournament and the Paris 2024 Olympic Games.
Despite the impressive growth, French operators lagged slightly behind the European market growth rate of 5.5 percent (or €134 billion GGR). However, the ANJ noted that France’s growth was in line with other major markets such as Germany, the UK, and Spain.
Isabelle Falque-Pierrotin, President of ANJ, commented on the sector’s performance, stating, “The healthy state of the market demonstrates that demanding regulation is not a brake on development. This growth makes the objective of reducing the number of excessive gamblers, which the ANJ has placed at the heart of its action for the coming years, all the more relevant.”
Closer look at the numbers
Francaise des Jeux (FDJ) and PMU, with €6.6 billion and €1.7 billion respectively, generated 62.7 percent of the overall GGR. FDJ’s land-based and online sports betting grew by 10.4 percent to €1 billion, accounting for 16.2 percent of the group’s total GGR. Following its integration of online horse racing tote operator ZEturf in Q3, FDJ is now present in all online gaming segments.
PMU’s business grew by 1 percent in 2023, reaching €1.7 billion in GGR, marking a return to its pre-pandemic levels. The group also modified five of its products and optimized its racing calendar to boost its business.
French casino operators’ GGR grew by 8 percent to a record €2.7 billion. Almost 74 percent of the country’s 200 land-based establishments returned to higher levels than in 2019. Slot machines contributed more than 80% of the GGR. Paris, the capital, counts seven gaming clubs, and their GGR rose by almost 11 percent to €119 million in 2023.
Online operators’ GGR was up 7.2 percent to €2.3 billion, representing 17.5 percent of the total market. The digital segment is driven by sports betting at 63 percent, online poker at 21.6 percent, and online horse racing tote betting at 15 percent.
While the total number of unique players rose to 3.6 million, online sports betting was the only segment not to see an increase in the number of active accounts. However, its GGR was still up by 6.4 percent to €1.5 billion, and stakes were up 2.2 percent to €8.5 billion.
The lack of a major sporting event appears to have led to a decrease in the pool of unique players. This lack of new player accounts was offset by an increase in the average stakes per active account of 6.3 percent to €1,982. The ANJ warned that this may lead to more intensive gambling practices.
Online horse race betting returned to growth, with its GGR up by almost 2 percent to €353 million and stakes of €1.5 billion at 5 percent. The number of activities rose by 4.5 percent, and unique players were up by 1.5 percent, indicating that horse racing tote betting is attracting new players.
Online poker saw a strong upturn in activity, surpassing the records set during the health (COVID) crisis with its GGR up 14 percent to €504 million. The ANJ noted that from 2019-2023, the segment’s growth has been significant.
In conclusion, while France’s gambling sector has seen impressive growth, the challenge lies in balancing this growth with responsible gambling practices. As the sector continues to evolve, the role of regulators like the ANJ will be crucial in ensuring a sustainable and responsible gambling environment.
