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GGR plummeted due to lack of competitiveness on poker offers - Frances ARJEL
The French Autorité de Régulation des Jeux En LigneARJEL (Regulatory authority for online games) released on September 10, 2014, its annual activity report for 2013. This is actually the first annual report under the chairmanship of Charles Coppolani since he has taken office in February 2014. According to the report, 2013 was marked by a sharp decline in online poker compared to other regulated gaming offers. Indeed, the Gross Gaming Revenue (GGR) from poker fell to 13%, as well as that of horse racing (-6%) while sports bettings rose by16% during the same year. For those who are not in the know, GGR is the net income from gaming activities, the difference between wins and losses before costs and expenses deduction.
The GGR dropped from 397 million in 2012 to 258 million in 2013. Entry fees in poker tournaments rose by 5% to 1.460 billion in 2013 against 1.397 billion in 2012. Cash game bets slumped by18%, from 6.182 billion to 5.055 billion. Speaking of that declining trend, online poker market in France suffers from a lack of competitiveness on regulated poker offers, the report suggested. The fact is that poker offers were poorly publicized on the media compared to the year 2011, and that financially struggling operators lowered down their marketing spending over fear of operating losses fueled by non-regulated poker providers. The same report suggested that the improvement in profitability in this poker industry is attributable to the marketing spending drop, lowering the GGR from 46% to 39%. In short, the operating profit of online poker providers in France remains negative overall.
Source: Oliver JOHNSON
Friday, 12 September 2014
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