French regulator ARJEL has granted 888’s request to have its online poker licence annulled, as the tough tax regime continues to take its toll on the regulated dot.fr market.
ARJEL also revoked the licences of Pokersubito.fr operator Ad Astra and of Sofun Gaming for its betkup.fr sports betting website.
888 and Pokersubito.fr’s formal withdrawal effectively ends the presence of the 888-Microgaming joint poker network in France, following the departure of MyPok.fr for the Partouche platform earlier this year in the wake of its merger with fellow 888/Microgaming skin PokerXtrem.
Friday’s licence repeals mean just 22 business entities licensed by ARJEL since 2010 remain active in the French market, operating under 33 licences.
888 follows a number of other high profile poker brands out of France, having failed to build a sustainable business there in the face of high tax rates, restricted liquidity, well-funded local incumbents such as Winamax and the spending power of PokerStars.
ARJEL said in its last quarterly report, which revealed a 5% fall in poker revenues, that “poker activity seems to be entering a stage of stabilisation or even declining, mainly because of the difficulty in recruiting new players for licensed operators.”
Other notable departures this year include Chilipoker.fr, bwin.party-owned Gamebookers.fr and Partybets.fr, SNAI, Titan.fr and leading Italian network owner Microgame.
ARJEL president Jean-Francois Villotte has said he will suggest changes to the law to allow international liquidity sharing, but emphasised the decision resided with the French government.
The tax conditions for sports betting, poker and horse race betting saw a host of leading pan-European operators, including London-listed Willliam Hill, Sportingbet, Betfair and Ladbrokes, decide against entering the ringfenced dot.fr market due to the huge entry costs and the margin impact of the high tax rates.
ARJEL has also recommended the French government levy taxes for sports betting on gross gaming revenue as opposed to stakes – the 8.8% turnover tax on sports betting is equivalent to 50% of GGY – but the issue currently lies far down the priority list of the new French administration.
Article written by Stephen Carter
