French legislators are in the process of discussing a bill that would end a state monopoly on online gambling. The proposed bill is being evaluated in the French parliament this week. If passed, the legislation would allow privately owned websites to offer wagers on horse racing, soccer and poker.
The country is under a great deal of pressure from several forces to implement the legislation. It is estimated that about 3 million French citizens are illegally wagering at online casinos based abroad. Under the proposed law, private firms would obtain a permit from a newly created regulator. The firms could then set up websites offering wagers on skill games like horse racing, poker and sports contests.
Great potential for French market
According to consulting firm MECN, the French market could be worth nearly 2 billion Euros in gross revenues by the middle of next decade. The report is based on five key factors:
Liberalization-The legislation is expected to be in place by next summer.
The importance of the French market-Among casino operators and industry experts surveyed in the report, 80% indicated that France was relevant and important to their future endeavors.
Onlne poker-Nearly 80% of the casino operators in the survey are looking to secure a French poker license.
Market size-The licensed market in France last year totaled 70 billion Euros with a gross revenue of over 8 billion Euros.
Potential-The market has unlimited growth potential in poker and sports betting.
click here to see most Popular Pages“The operators will focus on online poker and sports betting because they expect the French market to outstrip even the success story of the Italian online poker and betting market,” according to a statement from MECN.
The wheels are in motion
“We have chosen a middle way which I think is just and efficient, a controlled opening up of the market,” Budget Minister Eric Woerth told parliament. “I want to put an end to these parallel universes. I want to put an end to the jungle of illegal sites,” he said.
Under the current laws in France, two state-owned organizations handle legal online gambling operations in the country. The state makes about 5 billion Euros per year from gambling at race tracks, licensed cafes and the internet. Woerth has indicated that France could generate 1.5 billion Euros annually from taxes tied to the pending legalization.
In addition to pressure from private gaming firms and the European Union, there are several top soccer clubs in Europe pushing for the bill to go through. The soccer organizations feel that their sport would benefit by giving their fans a chance to place wagers on matches at their websites.
The bill is critical for online gaming corporations in the United Kingdom. Their profits have been down in recent years but the French legislation would be a major jump start for their operations over the next few years. Several major gaming companies in the UK saw their revenues decline by over 25% in the first-half in wake of the worst recession since World War II.
