Licensed operators in France suffered a difficult year in 2015, adding on to the growing losses made since the market was regulated some six years ago, according to new figures released by gaming regulator ARJEL.
The big number in ARJEL’s report on 2015 market performance was 5 million — the operating loss French-licensed operators posted collectively. Only racing generated an operating surplus, at 10 million, but sportsbook and poker operators clocked about 7 million in losses each.
Five out of eight operators in the racing vertical posted a profit in 2015, the only vertical with a majority making a profit. Seven of the nine poker licensees reported a loss, while only five of the 11 sports betting operators reported making a profit.
The regulated market was launched in 2010. Since then, French-licensed operators reports total operating losses of 471 million. Sports betting was at the top of the list, with 222 million in losses. Poker followed in second place at 206 million and racing lost 43 million.
With profitability hardly within sight of its initial goals, ARJEL made several suggestions as to how to turn the situation around. These include sharing liquidity with other regulated markets within the EU, tax reforms and allowing licensees to diversify their online product offerings.
Sports take gold, racing and poker fall behind
Sports betting saw a record 1.44 billion turnover in 2015, an increase of 30%, even without any big-draw sports events during that year. Turnover in H1 2016 has already reached 1.1 billion, with no signs of stopping, a 60% jump over the same time last year thanks to the Euro 2016 tournament. Revenues hit 270 million — an increase of 19% from 2014 and a massive 240% higher than in 2010, the year the market first became regulated.
At 53%, football remained the most popular wagering sport for 2015, although this marked a drop from the 73% posted in 2014, a World Cup year. At 20%, tennis wagering increased by four points, while basketball was at 11%, rugby at 4%, and volleyballs and hockey tied at 2%.
The trends seen in other European regulated markets were mirrored in French online poker. The overall spend fell by 4% to 232 million. A 14% drop was seen in cash games, reaching 101 million, similar to the drop seen in 2014. On the other hand, tournament stakes reached 131 million, an increase of 14% and a marked improvement over 2014’s 6% boost. A 4.4% drop in active player ranks translated to 235,000, far off the market peak of 300,000 in 2011.
Revenue and turnover for horseracing fell for the third consecutive year. Turnaround was just over 1 billion, a 2% drop year-on-year, though it fared slightly better than the 7% drop recorded in 2014. Turnover for 2015 was, however, the lowest in the market’s history. Revenue was 254 million for racing, essentially equal to 2014.
There was some stability in the number of active bettors since 2011, revealing that while bettor number stayed the same, they were wagering small amounts. H1 2016 was a poor year for racing stakes, with a 10% drop recorded. The biggest decline was seen in April, well ahead of the Euro 2016 football tournament that stole the betting public’s attention, noted ARJEL.
Mobile has once again shown its increasing popularity. Only 12% of all French wagering took place via mobile devices back in 2011. By 2015, every single vertical reported a significant leap — 53% for sports betting, 46% for poker and 36% for horseracing.