BetClic chairman slams French gaming laws
BetClic's chairman Stéphane Courbit has criticised French gaming laws, calling them the worst in Europe.
Stéphane Courbit, chairman of the board of directors and 50% shareholder of BetClic Everest Group, has slammed French authorities for imposing the “worst online gambling laws in Europe” since the market opened in June this year, branded taxation levels “absurd” and suggested that French gaming law “encourages fraud”.
In comments made to French national newspaper Le Figaro, he said: “The president and the government have been brave in deciding to open this market. But French law is absurd in its execution. This is the worst in Europe. It does not allow us to exist: we are overtaxed, the scope of authorized gambling is too limited and the rate of return to players is too low.”
He said that the recently rebranded BetClic Everest Group began by posting strong results when regulation was first imposed, mainly due to the World Cup. During the months of June and July the business was signing-up more than 10,000 players a day, he said, but this trend was reversed in August and continued to spiral downwards in September showing no signs of recovery.
“The problem is the cap rate of return to players imposed by French law. Today, we cannot distribute more than 85% of money [to players]. Everywhere in Europe, but also in France if you did not license, you redistribute 96%. We did not imagine how disappointing this would be for French players, who know that [on other non-licensed sites] distribution rates are much higher.
Earlier this month eGaming Review reported that the total amount bet on sports in the first five months of the regulated French market reached 350m. According to French regulator ARJEL, the average amount bet per player per week on sports, poker and horse racing over the five-month period was 110, up from the 100 recorded during the first four months, with an average bet size of 8, up from 7 during the first four months.
“French law instead favours fraud,” the BetClic chairman added. “Players know they have an interest to play on sites that are not licensed and they do not hesitate. The Regulatory Authority of online games [ARJEL] has announced that the law has reduced the number of players going on illegal sites by two thirds. Our analysis is that authorized sites in France do not represent more than 30% of market value of gambling on the internet. ARJEL is doing what it can, but with 20 people in charge it’s impossible to stop illegal sites.
“By comparison, China announced that it has closed 2,500 illegal gambling sites in the last four months. But 40,000 Chinese employees constantly monitor the internet. The best evidence that the illegal market is continuing, is that some listed companies, which fail to comply with French law but offer online betting, have publicly shown some very good profits in the third quarter.
“Today, there are only losers. The law must evolve faster or risk placing online gambling in the hands of foreign operators. BetClic Everest Group, the only French operator, produces a quarter of its turnover in France, but cannot afford to live in its home market. It is a major handicap to expand abroad. French law as it stands prevents French groups from developing, but favours foreign groups. It is a paradox,” he added.