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   Friday, July 12 2024 
Online poker: A reserved market in France

This week, the French Gambling authority of online gambling (ARJEL) published a new report which revealed the hidden face of the market of online poker in France. According to this survey, the market is overdrawn but some operators managed to be more competitive, while others have difficulty to survive. But as usually, the ARJEL doesnÂ’t give a name. In 2012, the market of the French online poker registered 6,182 million euro bets in cash game and 1,397 million euro of buy-in in tournaments. The Gross Gaming Revenue of operators of online poker rose in 297 million euro. By subtracting 37% of the Gross Gaming Revenue which corresponds to the VAT, the operators have 186 million euro of Net Profit of the Games left.

But other spending is also included in the functioning of an online website of gambling, namely the marketing expenses (46%) and structural costs (29%). These expenses rose respectively at 136 and 85 million euro in 2012. With these figures, the operating losses rose at 12% of the GGR at 36 million euro. Most of operators of online poker in France are overdrawn but some of them succeed but how? by making some economy. In 2011, operators spent 314 million euro in marketing, figure which was reduced to 255 million euro in 2012. The spending bound to the structural costs were also limited to 36 million euro. But to sustain the market, operators and the Arjel recommend the modification of the tax base, which is currently taken from bets but not on the GGR. This amendment of the tax base is also essential in the project of common liquid assets between France, Italy and Spain.

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