Issues Surrounding the Legal Opening of Online Gambling in France

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1 Issues Surrounding the Opening of 1 Jean-Michel Costes (will be presented in French) Research Chair on Gambling, Montreal September 10, 2014

2 Outline The legal :! in Europe! in Current situation surrounding Current situation surrounding! Data on regulation! General population surveys

3 EU: action plan 3 Action Plan 2012 on 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

4 EU: recommendations 4 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

5 : legal 5 Law of 2010! The context of the law of 2010! Regulatory bodies established by the law! ARJEL! CCJ! ODJ

6 An illustration of the role of ARJEL: supply control 6 Sites monitored since the opening in June 2010 until March 1, sites conforming * 3068 sites monitored by DEC 921 other sites 2147 sites for sports betting, horse race betting, poker, and casinos added to roster of automated data processing for illegal sites - directories, comparators - information sites - offers of skill-based games and free or so-called free games 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 * sites that do not meet the criteria to qualify as a french web site address

7 : changes stemming from the law of

8 Offers of legal 8 The casinos, numbering about 200, posess a fleet of 23,000 slot machines The horse race betting (Pari mutuel urbain), statecontrolled, manages betting on horse racing La Française des jeux (FDJ ), a state monopoly, manages raffles, sports betting, and scratch card games The operators of games, approximately 30, run licensed gambling sites covering three domains: sports betting, horse race betting, and poker

9 9 Framework Statistical and administrative data

10 Framework Gambling: Spending of the French people 10 Net spending per inhabitant Source: INSEE, les comptes nationaux 1.00% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Portion of the budget spent on gambling 0.80% Source: INSEE, les comptes nationaux

11 Gambling: the dustry (1) 11 Framework 50!000!M! 45!000!M! 40!000!M! 35!000!M! Chiffre'd'affaires'des'jeux'd'argent'et'de'hasard'par'filière' Revenues from gambling per sector '(mises';'en'm )' (bet, in 30!000!M! 25!000!M! 20!000!M! 15!000!M! Jeu!en!ligne! Casinos! PMU! HRB FDJ! FDJ 10!000!M! 5!000!M!!0!M! 1995! 1996! 1997! 1998! 1999! 2000! 2001! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013! Source!:!ODJ!

12 Gambling: the dustry (2) 12 12!000!M! 10!000!M! Produit(brut(des(jeux(d'argent(et(de(hasard(par(filière( Gross product from gambling per sector ((mises(9(gains(;(en(m )( (bet - win, in Framework 8!000!M! 6!000!M! 4!000!M! Jeu!en!ligne! Casinos! PMU! HRB FDJ! FDJ 2!000!M!!0!M! 1995! 1996! 1997! 1998! 1999! 2000! 2001! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013! Source!:!ODJ!

13 Gambling: the dustry (3) 13 Framework 5!000!M! 4!500!M! 4!000!M! 3!500!M! 3!000!M! Produit(net(des(jeux(d'argent(et(de(hasard(par(filière( Net product from gambling per sector (bet ((mises(8(gains(8(taxes(;(en(m )( win taxes, in 2!500!M! 2!000!M! 1!500!M! Jeu!en!ligne! Casinos! PMU! HRB FDJ FDJ! 1!000!M!!500!M!!0!M! 1995! 1996! 1997! 1998! 1999! 2000! 2001! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013! Source!:!ODJ!

14 Gambling: population approach 14 Framework Results of the 2010 national survey

15 Baromètre Santé 2010 Volet Jeu 15 Methodology Partnership OFDT/INPES Framework " Phone survey, computer-aided telephone interviews (CATI) " Two stage random sampling " Field dates: 22 October July 2010 " Refusal rate 40% " 25,034 individuals aged 18-75

16 Types of players 16 Framework Gamblers Gamblers 47.8% (having played at least once in the last 12 months ) (having played at least once in the last 12 months spending % Regular gamblers play + 52 times / y 3.4% 10.9% Active gamblers 12.2%

17 Problem gambling: prevalence 17 Framework CPGI: prevalence in % In the general population Non gamblers or non- problem/low risk Moderate- risk gamblers Excessive gamblers In active gamblers Non- problem gamblers Low- risk gamblers Moderate- risk gamblers Excessive gamblers CI at 5 % 98.7 [ ] "Pathological" gamblers 0.9 [ ] 0.4 [ ] [ ] 12.2 [ ] 7.1 [ ] 3.7 [ ] 3.7 "Problem" gamblers

18 PG: and the world 18 Framework

19 gambling (OG) in 19 Data on regulation

20 2500 Amount spent per trimestre (in million euros) T T T T T T T T T T T T T T T Poker (cash-game & tournament) Amount spent per trimestre (in million euros) Source : ARJEL T T T T T T T T T T T T T T T Sports betting Horse race betting Source : ARJEL

21 gambling (OG) in 21 Results of the 2012 national survey

22 Enquête Prévalence-e-JEU 2012; ODJ 22 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+

23 Enquête e-enjeu 2012; OFDT/ODJ 23 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 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 in the past 12 months

24 Prevalence of gambling 24 Which amounts to approximately 2 million people

25 Profile of gamblers: gender, age 25

26 Profile of gamblers: sociodemographic 26 In % Internet gamblers 2012 (n=4,043) Gamblers Baromètre Santé 2010 (n=11,655) INSEE data 2012 Gender Male Female Age Education < B.A B.A > B.A Social category CSP- * CSP+ * Inactive * Socio- profes s ional category Source: Enquête e- ENJEU2012; OFDT/ODJ

27 OG practices: types of games 27 Prevalence of type of game among gamblers (n=4,043) in % Total FDJ * Other raffles/scratch cards Poker Sports betting Horse race betting Other games Slot machines Free 11% Skill games 10% gambling "Traditional" gambling Casinos (excluding poker) Source: Enquête e- ENJEU2012; OFTD/ODJ * Key: 58.2% of gamblers have played FDJ games over the past 12 months; 66.4% have played them at the point of sale.

28 OG practices: frequency of gambling 28

29 OG practices: spending 29

30 OG practices: gambling medium 30

31 Perceptions of gamblers: advantages 31

32 Perceptions of gamblers: inconveniences 32

33 Problem OG: prevalence 33

34 Is the regulation effective? 34

35 Does the regulation protect? 35

36 Does the regulation protect? 36

37 (1) 37 Framework Return to the objectives of the law

38 38 Framework

39 (2) What is known about OG in : 39 Framework " OG concerns 3.7% of the French population " Young people, people with college/university education, and well intergrated " More intense and problematic practices 10.4% of gamblers are moderate risk 6.6% are excessive gamblers " Mostly a legal offer of games, but not exclusive! 55-80%! Practices focuse on offering illegal games that aren t available legally " Emergence of "free" sites " Development of new mobile gambling devices

40 (3) Challenges for the coming years: 40 Framework " Develop specific preventative measures of gambling problems, adapted to this particular population " Re-examine the foundations of public policy: " Is the "regulation" strategy effective? " Responsible gambling: place of each stakeholder, ethical questions " Scope of gambling " Monitor developments in gambling

41 41 Framework Thank you for your attention To find out more:

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