As part of the strategy to combat illegal online gambling offerings, the ANJ asked Pricewaterhouse Coopers (PwC) to conduct a study to determine the characteristics of this offering and widespread practices in France. PwC previously conducted a similar study in the UK in 2021.

More specifically, the objectives of this study included the following:

• Measure, in the period from January to March 2023, through a quantitative analysis, the illegal online gambling offer accessible on French territory (illegal websites and mobile applications);
• Understand better i consumption linked to this illegal offer, through a qualitative study conducted on a Web panel of over 11.000 people.

The illegal offer considered in the study is one that has the following three characteristics:

✓ A gambling offer made to the public that combines financial sacrifice, hope of winning and a share of chance;

✓A game offer accessible on French territory, via an Internet connection providing a French IP (without the use of a VPN or proxy);

✓Lack of authorization granted to the operator of the site or mobile application to offer its online gambling.

In France, only the 18 operators approved by the ANJ and FDJ legally offer online gambling.

An illegal offer dominated by online casino games and slot machines that is fueled by the most fragile players

• The gross gaming revenue (GGR) generated by offering illegal online gambling in France would be between 748 million euros and 1,5 billion euros, or between 5 and 11% of the overall gambling market. We remind you that the overall legal gambling market in France represented almost 13 billion euros in 2022, of which 2,96 billion euros for online gaming (sports betting, horse racing and poker).

• It seems that 50% of the Internet traffic of the illegal online gambling offer is generated by games from online casinos (such as roulette, dice games, craps, blackjack and baccarat) and slot machines.

• The study, conducted from January to March 2023, identified 510 illegal websites which generate traffic on French soil. 21 of these alone would provide 60% of the traffic of the illegal gambling offer.

• 50% of illegal offering websites whose operator could be identified belong to companies registered in Curaçao.

• 79% of the GGR generated by the market for illegal online gambling offerings comes from players with risky gaming practices.

Typical player profile on the illegal offer

• It is estimated that approx 3 million people have consumed illegal supplies at least once a month in 2023.

• 1 in 2 consumers of an illegal offer say they are unaware of the illegal nature of the offer they are playing.

• Consumers of illegal offers they are in favor of non-slots online casino games (54%).

• The main reasons of the  consumers of illegal offers to play on these unauthorized gambling sites are: the absence of betting limits or identity verification, the expectation of larger winnings as well as a greater richness of the gaming offer offered.

• Consumers of illegal offers indicate that they became aware of these sites mainly through: online searches on search engines (19%), online advertising (18%) and social networks (18%).

• 35% of consumers of illegal offers would use a VPN to play it.

A necessary diversification of actions against illegal procurement

Since March 2022, the ANJ has the power to administratively block and remove illegal sites. Administrative hold orders are now faster and less expensive. Since then, the ANJ has issued 300 administrative blocking acts involving 1.230 URLs blocked. Thus, in a year and a half, thanks to the introduction of this procedure, the ANJ managed to block almost the same number of URLs as in 12 years of judicial blocking procedure.

If, at present, the law does not provide you with other specific means of action to combat this offer illegal, the ANJ intends to quickly implement various actions, viz:

• Make targeted reports to the judicial authority so that criminal proceedings can be initiated against people who, registered in Curaçao or Cyprus, operate these sites which currently act with impunity and which the ANJ itself cannot sanction;

• Initiate warning actions against publishers of illegal gaming software and companies providing hosting solutions to illegal sites;

• Act with payment service providers that enable the financial flow of illegal traders and traders;

• Deepen the exchange of information and best practices with European counterparts in the framework of the GREF (Gambling Regulators' European Forum));

• Strengthen public information on the dangers of illegal sourcing.

Reminder of the risks associated with illegal offers

Playing on an illegal site entails multiple risks for the player because:

• Winnings are rarely paid out: no legal action is taken against the illegal operator;
• Minors are not protected: most of the time there is no control of most players;
• There are no legal measures to protect players: self-limitation of bets, deposits and playing time, voluntary ban and self-exclusion from gambling, identification and support in case of excessive or pathological gambling;
• Risks of theft of identity and theft of banking data;
• Risks of Recycling and terrorist financing.