J e a n - M i c h e l C o s t e s
( w i l l b e p r e s e n t e d i n F r e n c h )
R e s e a r c h C h a i r o n G a m b l i n g , M o n t r e a l
S e p t e m b e r 1 0 , 2 0 1 4
Issues Surrounding the Legal Opening of Online Gambling in
France
1
Issues of online gambling in France
Legal framework Gambling in France Online gambling in France ConclusionsOutline
The legal framework :
§ in Europe
§ in France
Current situation surrounding gambling in France
Current situation surrounding online gambling in France
§ Data on regulation
§ General population surveys
Conclusions
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
EU: action plan
Action Plan 2012 on online gambling
÷
Current situation (Livre vert)
No common regulation but recommendations based on the following principles:
§ Compliance of national legislation with EU regulations
§ Protection of consumers and citizens
§ Prevention of money laundering and fraud
§ Preservation of the integrity of sports
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Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
EU: recommendations
Recommendations for the protection of gamblers (2014)
÷
Protection of minors (offers, publicity)
÷
Information on risks
÷
Responsible advertizement
÷
Procedure to open a personal account for players
÷
Game moderators
÷
Self-exclusion
÷
Phone help-lines
÷
Training of operators’ employees
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4
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
France: legal framework
Law of 2010
§ The context of the law of 2010
§ Regulatory bodies established by the law
÷
ARJEL
÷
CCJ
÷
ODJ
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Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
An illustration of the role of ARJEL:
supply control
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jm.costes@orange.fr
Sites monitored since the opening in June 2010 until March 1, 2013
3068 sites monitored by DEC 921 other sites
- directories, comparators - information sites
- offers of skill-based games and free or so-called free games
2147 sites for sports betting, horse race betting, poker, and casinos added to roster of automated data processing for illegal sites
1990 sites conforming *
* sites that do not meet the criteria to qualify as 1121 sites conforming
“spontaneously”
833 sites conforming after receiving notice of law suit
36 sites conforming following inaccesibility
by ISP blockage 83 sites pending action 74 sites under investigation
952 sites served notices 1398 notices served
- multiple notices served to same site - actions against website hosts
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
France: changes stemming from the law of 2010
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Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Offers of legal gambling in France
• The casinos, numbering about 200, posess a fleet of 23,000 slot machines
• The horse race betting (Pari mutuel urbain), state- controlled, manages betting on horse racing
• La Française des jeux (FDJ®), a state monopoly,
manages raffles, sports betting, and scratch card games
• The operators of online games, approximately 30, run licensed gambling sites covering three domains: sports betting, horse race betting, and poker
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Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Gambling in France
Statistical and administrative data
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Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Gambling: Spending of the French people
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138 €
0 € 20 € 40 € 60 € 80 € 100 € 120 € 140 € 160 €
1960 1962 1964 1966 1968 197 0 197 2 197 4 197 6 197 8 198 0 198 2 198 4 198 6 198 8 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Source: INSEE, les comptes nationaux
Net spending per inhabitant
0.80%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
1.00%
1960 1962 1964 1966 1968 197 0 197 2 197 4 197 6 197 8 198 0 198 2 198 4 198 6 198 8 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Source: INSEE, les comptes nationaux
Portion of the budget spent on gambling
Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Gambling: the gambling industry (1)
11
!0!M€!
5!000!M€!
10!000!M€!
15!000!M€!
20!000!M€!
25!000!M€!
30!000!M€!
35!000!M€!
40!000!M€!
45!000!M€!
50!000!M€!
1995! 1996! 1997! 1998! 1999! 2000! 2001! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013!
Source!:!ODJ!
Chiffre'd'affaires'des'jeux'd'argent'et'de'hasard'par'filière' '(mises';'en'M€)'
Jeu!en!ligne!
Casinos!
PMU!
FDJ!
Revenues from gambling per sector (bet, in M€)
Online Casinos HRB FDJ
Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Gambling: the gambling industry (2)
10/09/2014 12
!0!M€!
2!000!M€!
4!000!M€!
6!000!M€!
8!000!M€!
10!000!M€!
12!000!M€!
1995! 1996! 1997! 1998! 1999! 2000! 2001! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013!
Source!:!ODJ!
Produit(brut(des(jeux(d'argent(et(de(hasard(par(filière(
((mises(9(gains(;(en(M€)(
Jeu!en!ligne!
Casinos!
PMU!
FDJ!
Gross product from gambling per sector (bet - win, in M€)
Online Casinos HRB FDJ
Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Gambling: the gambling industry (3)
13
!0!M€!
!500!M€!
1!000!M€!
1!500!M€!
2!000!M€!
2!500!M€!
3!000!M€!
3!500!M€!
4!000!M€!
4!500!M€!
5!000!M€!
1995! 1996! 1997! 1998! 1999! 2000! 2001! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013!
Source!:!ODJ!
Produit(net(des(jeux(d'argent(et(de(hasard(par(filière(
((mises(8(gains(8(taxes(;(en(M€)(
Jeu!en!ligne!
Casinos!
PMU!
FDJ!
Online Casinos HRB FDJ
Net product from gambling per sector
(bet – win – taxes, in M€)
Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Gambling: population approach
Results of the 2010 national survey
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Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Baromètre Santé 2010 – Volet Jeu
Methodology
Partnership OFDT/INPES
Phone survey, computer-aided telephone interviews (CATI)
Two stage random sampling
Field dates: 22 October 2009 - 3 July 2010
Refusal rate ≈ 40%
25,034 individuals aged 18-75
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Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Types of players
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Gamblers
(having played at least once in the last 12 months )
Gamblers
(having played at least once in the last 12 months )
Regular gamblers
play + 52 times / y spending +
500€
10.9%
Active gamblers 12.2%
47.8%
4.7% 3.4%
Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
“Problem” gambling: prevalence
17
IC at 5 % "Pathological' Gamblers
"Problem"
gamblers in the general population
98.7 [98.5-‐98.9]
0.9 [0.78-‐0.94]
0.4 [0.38-‐0.50] 0.4 in active gamblers
77.1 [76.1-‐78.1]
12.2 [11.4-‐12.9]
7.1 [6.4-‐7.7]
3.7 [3.2-‐4.1] 3.7 CPGI : prevalence in %
Non gamblers or non problem/low-‐risk
Moderate-‐risk gamblers 1.3
Excessive gamblers
Non-‐problem gamblers Low-‐risk gamblers
Moderate-‐risk gamblers 10.7
Excessive gamblers
Gamblers
Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
PG: France and the world
10/09/2014 18
5.5 4.9
4.4 3.2
2.8 2.7 2.5 2.2 2.0 1.9 1.7 1.3 1.3 1.0 0.9
0.0 2.0 4.0 6.0 8.0 10.0 12.0
USA Australia Norway Canada Italy Finland Great Britain Sweden Belgium Quebec NZ France Switzerland Germany Netherlands
Current "gambling problems" for countries with indicators
Pathological gambling
Problem gambling
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Online gambling (OG) in France
Data on regulation
19
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
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1000 1500 2000 2500
T4 2010 T1 2011 T2 2011 T3 2011 T4 2011 T1 2012 T2 2012 T3 2012 T4 2012 T1 2013 T2 2013 T3 2013 T4 2013 T1 2014 T2 2014
Source : ARJEL
Amount spent per trimestre
(in million euros)Poker (cash-game & tournament)
0 100 200 300 400
T4 2010 T1 2011 T2 2011 T3 2011 T4 2011 T1 2012 T2 2012 T3 2012 T4 2012 T1 2013 T2 2013 T3 2013 T4 2013 T1 2014 T2 2014
Source : ARJEL
Amount spent per trimestre
(in million euros)Sports betting Horse race betting
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Online gambling (OG) in France
Results of the 2012 national survey
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Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Enquête Prévalence-e-JEU 2012; ODJ
Support: monthly phone survey, "l’Observatoire des Usages Internet" from Médiamétrie
÷
Phone survey among a random representative sample of the French population.
÷
3 survey waves: Sept-Nov 2012
÷
N = 2,761 French residents aged 18+
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22
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Enquête e-ENJEU 2012; OFDT/ODJ
Online panel “Media Square" from Médiamétrie
• Address base of 830,000 internet users
• Survey period: 4 weeks, from November 12 – December 11, 2012
• Sample of 20,000 French internet users aged 18-75
• Fixed quotas on sampling of internet users to ensure
representativity (criteria: gender, age, region and profession) based on data from the Observatoire des Usages Internet de Médiamétrie, 2nd trimester 2012
• Final sample used in the analysis: N = 4,043 internet users who reported having gambled online in the past 12
months
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Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Prevalence of online gambling
Which amounts to approximately 2 million people
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Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Profile of online gamblers: gender, age
25
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Profile of online gamblers: socio- demographic
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Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
OG practices: types of games
27
6.6 14.7 2.1
13.0 11.8 8.9 0.0
66.4 72.1
4.0 7.2
11.6 13.8
16.4 19.2
20.4
58.2
100.0
0.0 20.0 40.0 60.0 80.0 100.0
Casinos (excluding poker) Slot machines Other games Horse race betting Sports betting Poker Other raffles/scratch cards FDJ * Total
Prevalence of type of game among online gamblers (n=4,043) in %
Online gambling
"Traditional" gambling
Source: Enquête e-‐ENJEU2012; OFTD/ODJ
* Key: 58.2% of online gamblers have played FDJ games online over the past 12 months; 66.4% have played them at the point of sale.
Free 11%
Skill games
10%
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
OG practices: frequency of gambling
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Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
OG practices: spending
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Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
OG practices: gambling medium
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30
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Perceptions of online gamblers:
advantages
31
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Perceptions of online gamblers:
inconveniences
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32
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Problem OG: prevalence
33
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Is the regulation effective ?
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34
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Does the regulation protect?
35
Legal framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Does the regulation protect?
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36
Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Conclusions (1)
Return to the objectives of the law
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Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
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Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Conclusions (2)
What is known about OG in France:
ü OG concerns 3.7% of the French population
ü Young people, people with college/university education, and well intergrated
ü More intense and problematic practices
• 10.4% of gamblers are moderate risk
• 6.6% are excessive gamblers
ü Mostly a legal offer of games, but not exclusive
§ 55-80%
§ Practices focuse on offering illegal games that aren’t available legally ü Emergence of "free" sites
ü Development of new mobile gambling devices
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jm.costes@orange.fr
Legal Framework Gambling in France Online gambling in France Conclusions
Issues of online gambling in France
Conclusions (3)
Challenges for the coming years:
ü Develop specific preventative measures of online gambling problems, adapted to this particular population
ü Re-examine the foundations of public policy:
ü Is the "regulation" strategy effective?
ü Responsible gambling: place of each stakeholder, ethical questions
ü Scope of gambling
ü Monitor developments in online gambling
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Legal Framework Gambling in France Online gambling in France Conclusions
