Industry News
ANJ Publishes a Study to Evaluate the Illegal Online Gambling in France and Gain a Better Understanding of Consumer Practices
In order to combat illegal online gambling more effectively, the ANJ (Autorité Nationale des Jeux) has commissioned Pricewaterhouse Coopers (PwC) to carry out a study into what is available in France and consumer habits.
The study estimates that the gross gaming revenue (GGR) generated by illegal gambling is between €748 million and €1.5 billion, or between 5% and 11% of the overall gambling market. The scale and risks associated with illegal gambling justify even more vigorous action to combat it, in addition to that already being taken by the ANJ.
More specifically, the purpose of the study was:
- To measure, over the period from January to March 2023, via a quantitative analysis, the illegal online gambling available in France (illegal websites and mobile applications);
- To gain a better understanding of the consumption associated with this illegal offer, through a qualitative study carried out on a web panel of more than 11,000 people.
The illegal offer considered in the study is that which presents the following three characteristics:
- A gambling offer made to the public combining financial sacrifice, hope of winning and a share of chance ;
- A gambling offer accessible on French territory, via an internet connection giving a French IP (without using a VPN or a proxy);
- An absence of authorisation granted to the operator of the website or mobile application to offer its online gambling games.
In France, only the 18 operators licensed by the ANJ and FDJ legally offer online gambling.
Illegal gambling dominated by online casino games and slot machines and fuelled by the most vulnerable players
The gross gaming revenue (GGR) generated by illegal online gambling in France is estimated at between €748m and €1.5bn, or between 5% and 11% of the overall gambling market. As a reminder, the overall legal gambling market in France represented nearly €13bn in 2022, including €2.96bn for online gambling (sports and horse betting and poker).
Online casino games (such as roulette, dice games, craps, blackjack and baccarat) and slot machines are estimated to account for 50% of illegal online gambling Internet traffic.
The study, carried out between January and March 2023, identified 510 illegal websites generating traffic on French soil. Of these, 21 alone were estimated to generate 60% of illegal gambling traffic.
50% of the illegal gambling websites whose operators have been identified are owned by companies registered in Curaçao.
79% of the PBJ generated by the illegal online gambling market comes from high-risk gamblers.
Typical profile of illegal gamblers
Around 3 million people are estimated to have played illegal games at least once a month in 2023.
1 out of 2 illegal gamblers say they are unaware of the illegal nature of the offer they are playing on.
Illegal gamblers prefer online casino games other than slot machines (54%).
Illegal gamblers’ main reasons for playing on these unauthorised gambling sites are: the absence of wagering limits or identity checks, the expectation of higher winnings and the greater range of games on offer.
Illegal gamblers say that they first became aware of these sites through: online searches on search engines (19%), online advertising (18%) and social networks (18%).
35% of illegal gamers would use a VPN to play on these sites.
The need to diversify actions against illegal supply
Since March 2022, the ANJ has had the power to administratively block and delist illegal websites. Administrative blocking orders are now faster and less costly. Since then, the ANJ has issued 300 administrative blocking orders covering 1230 blocked URLs. In a year and a half, thanks to the introduction of this procedure, the ANJ has managed to block almost as many Urls as in 12 years of judicial blocking proceedings.
Although the law does not currently provide the ANJ with any other specific means of combating illegal offers, the ANJ intends to take a number of actions in the near future:
- Making targeted reports to the judicial authorities so that criminal proceedings can be brought against those registered in Curaçao or Cyprus who operate these sites, which currently operate with complete impunity and which the ANJ itself is unable to punish;
- Take action to warn publishers of illegal games software and companies that provide hosting solutions for illegal sites;
- Take action against payment service providers that enable financial flows between illegal operators and players;
- Deepen the exchange of information and best practices with its European counterparts within the framework of the GREF (Gambling Regulators’ European Forum);
- Increase public awareness of the dangers of illegal supply.
Reminder of the risks associated with illegal gambling
- Playing on an illegal site entails a number of risks for the player:
- 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 check on whether the player has reached the age of majority;
- There are no legal measures to protect players: self-limitation of bets, deposits and playing time, voluntary prohibition and self-exclusion from gambling, identification and support in the event of excessive or pathological gambling;
- Risks of identity theft and theft of bank details;
- Risks of fuelling money laundering and terrorist financing.
Industry News
SKS365 keeps investing in people: GROW People Management Program took the next level
11 experienced people managers from the SKS365 group’s 4 locations gathered last week in Belgrade for the new GROW People Management Program. From 15 th to 19 th of April, through trainings, discussions, and social connections, people had the opportunity to further grow individually and as a team, while enjoying Belgrade’s city center and rivers.
Created in 2023 with the purpose of building foundation people management skills across the organization, GROW initiative evolved this year by including a new, advanced program for experienced people managers to further consolidate their skills and prepare for future opportunities.
Building and fostering connections, sharing experiences, and enjoying team building experiences – all these activities have been part of the GROWpmp agenda for the 11 people managers coming from Commercial, Product and Development, Finance, and Sportsbook departments of the group’s 4 locations – Malta, Italy, Austria, Serbia.
GROWpmp included a variety of topics that people managers in SKS365 recognized as the key areas for management development. Topics such as influence through communication, team effectiveness, DEI, through to presentation skills and business topics like understanding finance and management reporting, were delivered with the support of external professionals and internal experts, while designed and organized by the SKS365 People & Culture team.
Industry News
Kindred’s Share of Revenue from High-risk Players Shows Slight Increase
Kindred Group plc’s (Kindred) share of revenue from high-risk players showed a slight increase to 3.2% (Q4 2023 3.1%) in the first quarter of 2024. Compared to the first quarter of 2023, the high-risk revenue share decreased marginally. The percentage of detected customers who exhibited improved behaviour after interventions came in at 87.1% (compared to 87.4% in Q4 2023 and 83.0% in Q1 2023). This sustained trajectory in the improvement effect after interventions, observed over an extended period, serves as a testament to the strong dedication and collective efforts throughout the company. It reflects Kindred’s ongoing commitment to fostering positive change within the industry.
“We continue to see our share of revenue from high-risk players fluctuate quarter to quarter, and we are working closely with all teams across the company to support customers towards a more sustainable gambling experience. However, it is encouraging to see that our Journey towards Zero data has steadily decreased since 2020. A similar trend can be seen across the healthier gambling behaviour effect after interventions. This tells us two things: our work is paying off, but we need to continue to push ourselves to propel a sustainable progression,” Alexander Westrell, Director of Communications at Kindred Group, said.
“It was very encouraging to witness the open and transparent discussions at the Sustainable Gambling Conference in London on 20 March, where those with lived experience shared their important stories. Also, it is evident that technology is moving forward, and will provide greater opportunities to detect and intervene in the future. We hope to see more regulators engage with the industry and with experts to secure a more sustainable industry for everyone,” Alexander Westrell added.
Industry News
PENN Entertainment Names Aaron LaBerge as Chief Technology Officer
PENN Entertainment announced that Aaron LaBerge has been named Chief Technology Officer (CTO) effective July 1, 2024, subject to customary regulatory approvals. Mr. LaBerge will report directly to PENN CEO & President Jay Snowden.
In his new role, Mr. LaBerge will be responsible for driving the technology strategy and execution for PENN, while leading the multinational team of technologists and serving as the key business leader for the company’s Interactive division.
Mr. LaBerge spent more than 20 years at The Walt Disney Company, in two stints separated by five and a half years as a technology entrepreneur. He was most recently President & Chief Technology Officer for Disney Entertainment and ESPN where he was responsible for driving all technology and product development in support of The Walt Disney Company’s two media divisions. In that role, he helped set the vision and strategic leadership for how Disney uses technology to enable storytelling and innovation, drive its business, and create unparalleled consumer experiences with entertainment and sports content.
“We are thrilled to have someone of Aaron’s caliber join our PENN executive team. Having overseen a global organization of thousands of engineers, product developers, designers, technologists, and data scientists that created some of the largest scale and most successful media properties in the world, there is no better candidate to lead our Technology and Interactive division into its future. I know Aaron is looking forward to working with Todd George, our head of operations, and our entire Executive Team to continue growing our position as a leader in online gaming, sports betting, and digital sports media,” Mr. Snowden said.
“I’m excited to join another talented team at PENN Interactive and lead our technology strategy. PENN Entertainment is at the forefront of the fast-changing gaming and sports media industry. I plan to use my experience from Disney and ESPN to help make ESPN BET an essential piece of the sports fan experience. Together, we’ll push the limits and redefine how fans interact with sports and gaming,” Mr. LaBerge said.
Prior to his most recent role at the Walt Disney Company, Mr. LaBerge was Executive Vice President and Chief Technology Officer at ESPN from 2015 to 2018. At ESPN he played an instrumental role in the growth of ESPN’s consumer-facing digital media products and services – leading many of ESPN’s most ambitious and challenging projects and helping establish ESPN’s position as the leader in digital sports and innovative sports technology development. He was a key architect in the design, development, and engineering of ESPN’s state-of-the-art facilities in Bristol, CT; Los Angeles, CA; Charlotte, NC; and Austin, TX, as well as data centers and infrastructure that connect those facilities around the world, as well as the technology design and development to support the launch of the multi-platform SEC Network.
Between 2007 and 2012, LaBerge was co-founder and CEO of Fanzter, Inc. – a venture-funded consumer software and digital product development company. At Fanzter, he directed all day-to-day operations and led the development and launch of a variety of consumer-focused internet and mobile products, ground-breaking social and commerce technologies and more.
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