Illegal Online Gambling Surpasses Legal Sites in France, Prompting Prevention Campaign

For the first time since France opened its online gambling market in 2010, illegal gambling sites are more popular than regulated ones. This alarming trend has prompted the Autorité Nationale des Jeux (ANJ), France’s national gambling authority, to launch a public awareness campaign this Tuesday.

Millions of French citizens engage in online gambling daily, sometimes without even realizing it. Startlingly, 4 million players are now using illegal sites, compared to 3.6 million on legal platforms. In France, only horse racing, sports betting, and poker are permitted online. Everything else is prohibited.

Operators of these illegal sites are becoming increasingly sophisticated in their tactics to attract new players. One method involves using “deepfakes,” manipulated videos that feature celebrities. For instance, shortly after Alain Delon’s death, a deepfake video surfaced, falsely showing him endorsing an illegal gambling site. While the video was noticeably fake, it was viewed by millions, potentially luring players to the unauthorized site.

These online casinos pose a significant risk, with many individuals falling victim to addiction and financial ruin. Idris, in an interview, shared his experience. He started gambling five years ago, initially betting small amounts. “At first, I bet 20 euros, 30 euros, and then I started winning. I increased the amounts, and then it’s a vicious cycle: I lost more than what I had bet, so I put more money in. Up to 1,500 euros, and every time I won, I told myself that it wasn’t enough, so I continued.” He has been gambling-free for four months, but the temptation remains strong.

Anyone can fall into this trap and face severe debt. Unlike physical casinos, where self-exclusion is possible, no such protection exists in the virtual world. This is why the ANJ is launching the “100% Winner” prevention campaign.

Licenses Purchased in the Caribbean

Illegal sites often circumvent French law by obtaining licenses in Curaçao, a Caribbean island. Some even use the ANJ logo to deceive players into believing they are on a legitimate site. The French market is highly profitable for cybercriminals, who even defraud each other, according to Isabelle Djian, general delegate of AFJEL, the French online gaming association. “Cybercrime has understood that there is a strong demand in France. There is no equivalent on the regulated market since it is not authorized in France, so cybercriminals pose as illegal gambling sites, and it is even worse than what they are at the base,” she explains. These criminals engage in data theft, phishing, and the installation of malicious software.

AFJEL estimates that the state loses over a billion euros annually due to illegal gambling. The ANJ is actively working to track down and shut down these sites. Since March 2022, 2,365 sites have been blocked, twice as many as ten years ago. However, this effort is ongoing, as sites quickly reappear elsewhere.

Expanding the Legal Offering?

One proposed solution is to expand the scope of legal online gambling by revising the 2010 law. However, Gaelle Palermo Chevillard, from the ANJ’s department for combating illegal offerings, believes this may not be the best approach. “For example, in Portugal, 40% of players frequent illegal sites even though online casinos are legal. The same is true in Belgium, a country where the market is particularly open. Yet, among the ten most popular operators, four are illegal, representing 60% of the traffic. So this solution has not proven its worth,” she argues.

The ANJ also faces a new challenge: Jonum, or monetizable digital object games. These video games allow players to buy, collect, and resell virtual items like clothing, weapons, or avatar skins. The ANJ has much work to do in tracking down illegal services that primarily target young people. These services, like gambling, are prohibited for minors.