French gambling regulator fined for exceeding payout limits

Neha Soni November 28, 2024

SiGMA news

The French gambling industry faced significant scrutiny in the aftermath of the 2022 FIFA World Cup as l’Autorité Nationale des Jeux (ANJ), the country’s gambling regulator, imposed substantial fines on operators for exceeding maximum payout ratio limits. This crackdown highlights the delicate balance between regulating gambling activities and maintaining a competitive market.

The 2022 FIFA World Cup was a monumental event, not only for football fans but also for the gambling industry. French sportsbooks saw record activity during the tournament, with over €600 million in stakes placed. However, this surge in activity also led to regulatory breaches, as operators struggled to maintain compliance with strict payout ratio limits.

In France, the maximum payout ratio for gambling operators is capped at 85 percent. This means that for every €100 wagered, operators can only pay out €85 in winnings. The rest is retained to cover costs, taxes, and profit margins.

As the regulatory authority for gambling in France, ANJ oversees compliance with industry rules. Its recent fines demonstrate a commitment to upholding these standards, even when dealing with major market players.

List of penalised operators

Leading operators Betclic and Winamax faced the largest penalties, with fines of €150,000 each. Their significant market share and repeated breaches contributed to the severity of the sanctions.

Other notable fines included €100,000 for Unibet, €15,000 for PMU, and €10,000 for NetBet. The scale of these fines reflects the extent of their violations and their roles in the market.

While France enforces a strict 85 percent cap, other European countries allow payout ratios as high as 97 percent. This discrepancy puts French operators at a competitive disadvantage, especially when competing with illegal platforms offering better odds.

Recent regulatory developments

In a significant regulatory update, French Senators have approved an increase in tax thresholds for gambling activities. The new tax rates will see Lottery GGR taxed at 10 percent, retail sports betting at 10 percent, and online betting at 15 percent.

This decision follows Prime Minister Michel Barnier’s Budget 2025 proposal in October, which aimed to raise an additional €500 million from French gambling operators through a tax hike across all sectors. Initially intended for ministerial debate, the Senators expedited the process by directly approving the tax increases for inclusion in France’s budget.