France's new online gambling laws, opening their market to foreign operators are due to be considered by Parliament this week.
According to a report in Bloomberg the French Parliament will, on October 7, debate Budget Minister Eric Woerth's proposed online gambling bill. The bill will open the French market to foreign operators under a newly established regulatory regime that will break the current monopoly held by local operations, Francaise des Jeux and Pari Mutuel Urbain.
France's current protectionist approach to online gambling earned a reasoned opinion and the threat of infringement proceeding from the European Commission back in 2007. Since then authorities, lead by Eric Woerth have been working on new laws more consistent with the EC's Single Market approach.
Eagerly observing developments in French Parliament this week will be the likes of 888.com, PartyGaming, William Hill Plc, and Ladbrokes. All of whom are eager to tap a market believed to be potentially as lucrative as the UK.
From PartyGaming CEO Jim Ryan:
'The size of the population and the appetite for gambling, and the group’s historically cautious approach to France make this a particularly exciting opportunity for us'
From H2 Gaming analyst Simon Holliday:
France is 'the largest single market on the horizon'
From Martin Higginson, CEO of live gaming specialists NetPlay TV:
'As it becomes more liberalized [French online gambling market], it will be as big as the U.K.'
What also makes entry into the French market particularly exciting for the large UK based operators, is the flatness of existing markets, on the back of the worst recession in over 50 years. Earnings at 888, William Hill and PartyGaming have taken a battering from the downturn and new opportunities are seen more important than ever.
So what will the new laws (assuming they're passed) mean in practice? Well it won't change the number of operators accessible by French players. Interestingly according to Woerth himself, 25,000 operators (including the above majors) took bets from French players, accounting for over 75% of total estimated take. What will change, is operators' ability to actively market their product terrestrially. Rather than simply a FDJeux cycling team in the Tour de France, we may see a William Hill, Party Gaming or Bet365 team in 2011 for instance.
A more established branding presence and local licensing will, according to analysts, more than double the value of the French betting market by 2010, and triple it by 2011.
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