Super Show - France & Poker: The Impact and Opportunities
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Super Show - France & Poker: The Impact and Opportunities

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France, one of the largest online poker markets, is in the process of regulating its iGaming space. This session will touch upon the expansion of French online poker in recent years, present an......

France, one of the largest online poker markets, is in the process of regulating its iGaming space. This session will touch upon the expansion of French online poker in recent years, present an overview of the upcoming legislative changes and outline the potential impact on growth and business development opportunities.

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  • 1. Poker and France – Impact and Opportunities
    Itsik Akiva
    Affiliate Business Development Manager, Everest Gaming
    iGB Super Show, Prague, May 26 2010
  • 2. Objectives of the New Law
    Official Objectives:
    • Protecting the public from addiction and underage gambling, monitoring the offer and practice of online gambling and controlling money laundering.
    Additional Objectives:
    • Protecting the market share of PMU and FDJ, the French gaming monopolies and allowing the government to tax gaming activities.
  • 3. The Regulation
    • Operators are required to obtain and maintain a separate license for each vertical: Circle games (i.e. Poker), Sports Betting and Horse Racing.
    • 4. Only those who were approved and obtain a valid license can offer gaming activities to French residents.
    • 5. The law covers shared games in which players can apply skill and strategy after the intervention of chance and in relation to strategy and skills adopted by other players.
    • 6. The law does not include lotteries, casino games, spread betting etc.
  • 7. The Spirit of the Law:
    Creating a closed and controlled gaming
    environment through:
  • 8. Obtaining a License
    • Gaming operators will have to satisfy a large number of requirements to obtain and keep a license.
    • 9. For that purpose an Online Games Regulation Authority, also known as ARJEL was created.
    • 10. ARJEL (Autorité de Régulation des jeux en ligne) is an independent public authority.
  • 11. ARJEL’s Responsibilities
    Applicants need to meet technical and financial requirements and provide guarantees concerning experience in the industry, ownership, protective measures against fraud, underage gambling and money laundering etc.
    Applicants must be established in the European Union or the Economic Community.
    ARJEL was commissioned in May and started receiving applications on May 17. It is unknown how long it will take until the first licenses are granted.
  • 12. Offering Poker in France
    • Separate platform restricted to French residents. Access only through a top level domain name with a .fr ending
    • 13. All wagers must be offered in Euro and are subject to 2% tax calculated on the total wagered amount and processed by the operator
    • 14. Players are required to provide their personal information: Full name, date of birth, registered address and personal banking information (RIB).
    • 15. In the first 30 days after registration, the player account is considered “temporary”, is limited to a capped total deposit and is restricted from cashing out.
    • 16. To upgrade the account to a “permanent” status, the player is required to submit copies of his documents to the operator. Once verified, all restrictions are removed.
    • 17. Available deposit methods are credit card and e-wallets. Withdrawals can only be made via bank transfers. All transactions are in Euro.
  • 18. Why now?
  • 19. Why is France such an opportunity?
  • 20. France has Excellent Foundations
    15-64 years:64.9%
    (male 21,041,384/ female 21,008,320)
    Median age: 39.7 years
    Males age 18-50:
    Internet Users above 15 in 2009:
    34.6 millions
    Average of revenue per household/year:
    33,100 Euro
    Mobile Phones:
    59.3 millions
  • 21. The Only Way is Up…
    Gross Poker Yield ($M)
    Source: H2 Gambling Capital: ”eGaming Data Bulletin 2008 Q2v3”
  • 22. What Will Change Post Regulation?
    The Second Boom:
  • 23. What Will Change Post Regulation? (cont.)
  • 24. Opportunities:
    Poker will become a household game
    Evolvement of an industry
    The foundations are there and they are strong:
  • 25. Opportunities (cont.):
    More is possible:
    Advertising (with restrictions), which allows for a wider reach:
    Offline – TV, print, radio
    Online – paid search, affiliate marketing, media buy
    Collaborations – sponsorships, product placements, joint ventures
    But remember that:
    • High standard of localization is crucial
    • 26. Competition will be fierce and will require deeper pockets
    • 27. Legal and moral responsibility lies on the operators and their business partners
    Work with a licensed operator that knows how to maneuver in the
    regulated environment and is able to help you thrive your business.
  • 28. Thank You!
    Itsik Akiva
    Affiliate Business Development Manager
    Everest Gaming