France Opening Up for Foreign Based Online Gambling Sites

September 29, 2009 | News Category: Online Casinos

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Online gambling web sites have been struggling mightily during this recession just like everyone else. Many people are aware that land based casinos have been experiencing unprecedented drops in revenue. However, many did not realize that online casinos are having a hard time staying afloat as well. Two online gambling web sites, Party Gaming and 888 Holdings, both based in the United Kingdom, have seen significant drops in revenue.  888 Holdings has lost 57% their revenues and Party Gaming, $66.9 million dollars.  As one can see, this is not an insignificant amount of money or a small profit margin. These losses are quite significant and these companies, and those similarly struggling, are subsequently searching desperately for new markets. One market that looks like it may be opening up soon (2010) is France.

Party Gaming and 888 Holdings, along with many others online gambling websites, are waiting excitingly and hoping that France will soon open up of its country to foreign, online casinos. In roughly two weeks the French Parliament will receive a bill that allows foreign based online gambling companies to market to French citizens.  This would be unprecedented since as it stands, only French based casinos can service French citizens.  Casinos from other countries see the potential of an open French market and are salivating at the possibility of being able to get a piece of it.

France is considered a very sophisticated market with the discretionary money to spend at online gambling web sites.  It is believed that by the year 2010 online gambling sales in France will increase by 100% (in effect doubling), creating a $992 million industry that until down could only be secured by French companies.

Obviously, online French gambling web sites will not view this change favorably because it will likely mean a decrease in revenues for themselves due the increased and undoubtedly intense competition that will ensue if the bill is passed in Parliament.  However, French citizens will find that they have more options and will be able to participate at online web sites which may possibly offer lower prices, better payouts and promotions than what they have previously experienced. 

Currently, many players in France are frequenting illegal online casinos (those based outside of France), which is in part, motivating legalizing such activities.  France has also been receiving a significant amount of pressure from the European Union (EU) to change their online gambling laws. There was even a threat of a lawsuit in 2007. 

As things stand, many foreign online gambling web sites are waiting with betted breath to see if the French Parliament will open up the country to outsiders. There stands to be a lot of money to be made and struggling of web sites such as 888 Holdings and Party Gaming are hoping to see the bill pass. These companies are looking for new markets to enter into in order to increase their revenues and France would make an ideal source.