France, the fourth largest gambling market in Europe, reaffirmed its place on the table by breaching the €14 billion Gross Gaming Revenue (GGR) mark. The figures are from the French National Gaming Authority or Autorité Nationale des Jeux’s (ANJ) annual report from 2024.
According to the ANJ, the French gambling market expanded by 4.7% compared to the previous year. This spike was largely due to the growing popularity of online sports betting, riding on a “phenomenal calendar year” courtesy of the Olympic Games Paris 2024 and the UEFA European Football Championship. Lotteries, too, played a key part in boosting the overall market valuation.
Summarising the Key Points
- Online sports betting contributed 43% to the overall market growth during 2024.
- The number of Active Player Accounts surged to 5.7 million, up 11% from the previous year.
- The ANJ suggests this growth resulted from aggressive marketing, strategic commercial partnerships between providers and operators, and sustainable financial incentives, apart from a conducive sports calendar year.
Reasons Leading Up to a Favourable Market Situation
The ANJ’s report suggests a momentous growth in the online sports betting and lotteries sectors. While the former accounted for a 19% increase in profits, worth €1.8 billion, overall gambling revenue grew by 12%, reaching €2.6 billion. Active Player Accounts also grew by 11% since 2023 to 5.7 million.
Online sports betting witnessed the highest rise in player activity (13%), followed by poker (11%), and horse racing (4%). While online sports betting played a key part in this equation, poker and horse racing were the next most valuable contributors to the growth. Another significant factor was the younger player demographic. Studies suggest that 30% of French sports bettors are between the ages of 18 and 24.
According to the ANJ, several factors besides a favourable calendar year led to this growth. The regulator believes aggressive marketing strategies adopted by the operators, including additional ad spends, higher marketing incentives, and increased cross-selling between sports betting verticals, were the major contributing factors.
Analysing Future Trends for Sports Betting and Lottery Markets
There is a huge demand for sports betting in France. Among the 40 sports betting types currently on offer, four ruled the French betting markets in 2024. While football topped the charts with €5.63 billion in total bets, tennis, basketball, and rugby quickly followed with €2.27 billion, €914 million, and €186 million in total bet value.
These four sports together constituted 8.75% of all French sports betting revenue in 2024. Other sports categories, including volleyball, ice hockey, handball, cycling, and badminton, also recorded significant growth, and their combined figures were up 31% compared to 2023.
The lottery market witnessed a positive trend as well. FDJ United, the French lottery operator, posted a €7 billion GGR in 2024, up 6% from the previous year. French state-controlled betting system PMU has also reported stable net profits and an increasing player base, despite losing a small market share.
FDJ Limited remains the leader in the French gambling landscape, with nearly 50% market share. Its growth is primarily attributed to the lotteries vertical, which increased by 5% to reach €5.8 billion. The report states:
FDJ United contributes the highest toward market capitalisation, and they retain their position as the French market leader.
PMU, which has a monopoly over horse betting, recorded a 2% decline in GGR compared to 2023. It only managed to rake in €6.6 million in bets and €1.7 billion GGR. The company has already taken corrective measures to appeal to a broader, younger, and more urban consumer base. Despite the drop in GGR, profits remained flat while the player base increased by 6% to 3.5 million for the first time since COVID disrupted the markets in 2019.
Looking ahead, the ANJ issued a word of caution for 2025. They said:
The market is presently showing no signs of slowing down. However, 2025 could be a risky year, especially with all the added marketing pressure of a year without any major sports tournaments. The effects are apparent as ad spends are already up by 11%.
2025 is also set to revolutionise the online gambling market. France will be experimenting with the Games with Monetizable Digital Objects (JONUM) strategy, which was authorised by the SREN Law of 21 May 2024. If the experiment is approved by the regulatory bodies, it could start as early as September 2025.
The ANJ will strictly maintain a distinction between JONUM and traditional gambling operations. The regulatory body’s stance on the subject is clear: growth must be sustainable and should not come at the expense of responsibility.