The number of online operators in France fell nearly 40% last year, according to new figures from regulator ARJEL, as consolidation of the dot.fr market continued in the face of tough tax conditions.
There were 22 active operators in France by the close of 2012, a 37% fall on the 35 recorded a year earlier, as 17 licences were repealed in 2012 compared to the issue of just two new permits and two renewals.
The total number of licences operated by these 22 companies stood at 33 by year’s end, a 31% fall on the 48 active licences at the close of 2011. Nine of the licence repeals were for online poker – 888 and Titan among the notable casualties – seven for online sports betting and one for online horse race betting.
ARJEL said this confirmed “the trend towards concentration of the market, initiated in 2011.”
Online poker was also the one black spot as ARJEL revealed licensed operators’ total gross gaming revenues from the ring-fenced market grew 4% to €698m in 2012, up from €672m in 2011, driven by a 19% increase in sports betting revenues to €138m and an 8.5% rise in horse racing GGR to €263m. Sports betting revenues benefitted from a lower pay-out ratio than in 2011.
Revenues from France’s largest online gaming segment were down 5% to €297m from €314m, as fourth-quarter revenues fell 2% to €74m, reflecting the impact of high tax rates and restricted liquidity on the market. ARJEL expressed its view following the publication of its third-quarter figures in November that online poker was “entering a phase of stabilisation and even decline due to a lack of new players.”
Cash game turnover was down 5% year-on-year to €6.2bn, offsetting a 21% rise in tournament entry fees from the smaller tournament poker sector to €1.4bn.
Wagering in the market as a whole also fell nearly 2% to €8.16bn from €8bn, while €988m was deposited in customer accounts, 7% down on the €1.06bn total recorded in 2011.
Article written by Stephen Carter
