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Isabelle Falque-Pierrotin, chair of the National Gaming Authority in France (L’Autorité Nationale des Jeux/ANJ) has advised European authorities to double down on their efforts against illegal gambling. According to her, European gaming is entering a phase where more serious oversight of the black market is needed.
The ANJ Is Wary of the Black Market’s Growth
Speaking at ICE Barcelona, Falque-Pierrotin emphasized the importance of cracking down on illegal gambling across Europe. She indicated that, to the industry’s dismay, unlicensed gambling is on the rise.
According to the ANJ chair, the regulated industry should do more to channel players toward licensed gaming operators. While regulatory bodies in many markets have led such initiatives, they have so far had fairly mixed results.
On top of it, the black market continues to grow and expand its presence. Falque-Pierrotin noted that illegal gaming is no longer a “niche” but the norm. She argued that unlicensed gaming companies are already openly promoting their products across TV and social media platforms.
While Falque-Pierrotin admitted that certain jurisdictions have stricter rules on illegal gambling and gambling ads, many markets are experiencing trouble amid intense competition from black market companies.
Illegal Operators Must Be Stopped
Falque-Pierrotin suggested that illegal operators are exploiting the lack of certain verticals in some markets in order to channel players toward their platforms. France, for example, does not allow online casinos, which is why the black market has virtually no competition.
The ANJ chair added that another problem is that many customers lack regulatory knowledge and are sometimes unaware they are engaging with black market operators. As a result, illegal iGaming has continued to spread and thrive in France.
Regardless of the reasons for these trends, Falque-Pierrotin said that regulators must stand against the black market. She argued that if authorities do not put up a fight, the legitimacy of licensed frameworks might be in danger.
France, for context, has yet to legalize online casino gaming. Although there were recent efforts to introduce such products, the recent political shifts jeopardized these plans.
France Raised Its Gaming Taxes
In November, the French Senate approved tax hikes across a variety of industries, including gambling, adding to the industry’s woes. This decision backpedaled on earlier plans to keep gambling taxes intact.
The gaming industry was not very happy with the change, echoing concerns about the black market. Industry stakeholders argued that more challenging business conditions might undermine the gambling industry’s competitiveness, forcing it to give ground to illegal operators who do not follow the rules.
Industry critics, however, rejoiced at the last-minute change of heart. Many critiqued the industry and some said that the higher taxes are just fair considering the damage gambling can do to vulnerable players.
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