Research conducted by the French gambling regulator, l’Autorité Nationale des Jeux (ANJ), has shed light on the prevalence of illegal gambling websites, identifying a total of 510 such sites responsible for generating substantial traffic.
Shockingly, a mere 21 of these websites were found to account for a staggering 60% of the overall illegal gambling traffic.
The study, conducted in collaboration with PwC, estimated that the gross gaming revenue (GGR) generated by these illicit gambling activities ranges from €748 million to €1.5 billion.
This troubling revelation implies that illegal gambling comprises a significant portion of the French gambling landscape, constituting between 5% and 11% of the entire market, which itself reached an all-time high of €12.9 billion in 2022.
Of particular concern is the fact that a substantial 79% of the GGR from illegal online gambling activities is sourced from high-risk gamblers.
The study attributed this phenomenon to the lack of wagering limits and identity verification processes on illegal sites.
Additionally, players are drawn in by the allure of larger winnings and a wider selection of games.
The study also identified that approximately half of the illegal gambling websites with known operators are owned by companies registered in Curaçao.
Further analysis revealed that online casino games and slot machines dominate the illegal online gambling landscape, constituting 50% of the overall illicit traffic.
In response to these alarming findings, ANJ has unveiled a comprehensive action plan to combat illegal gambling.
This initiative will include reporting to authorities regarding operators based in Curaçao or Cyprus, who have thus far operated with impunity.
ANJ will also take steps to notify software publishers and hosting providers involved with illegal sites, as well as target payment service providers facilitating financial transactions between illicit operators and gamblers.
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Moreover, ANJ will strengthen its collaboration with European counterparts through the GREF to exchange information and best practices.
Finally, the regulator will embark on a public awareness campaign to highlight the dangers of illegal gambling.
France experienced a record-breaking year in gambling in 2022, with a remarkable GGR of €12.9 billion, representing a 20% year-on-year increase.
Of this, online gambling contributed €2.17 billion, comprising €1.38 billion from online sports betting, €442 million from online poker, and €346 million from online horse racing bets.
However, the prevalence of illegal gambling remains a significant challenge that ANJ is determined to address comprehensively.