During the first quarter of the year, the amount of money that players wagered on sports online dropped by 26.5%. Analysts predicted that the French online gambling market would see some difficulty as a result of its strict taxation policies and they have been proven correct.
Many online casinos and online gambling operators made their opposition to the tax regime known, and Bwin CEO Norbert Teufelberger has been very vocal about the issue. Last week, he stated that the online gaming taxing had gone too far. He believes that more than 70% of online sportsbetting activity still resides in the black market.
Since disbanding its monopoly, the French online gambling industry has experienced several setbacks. Many online gambling operators believed that the country went about regulating the industry the wrong way. By imposing steep taxes on operators, analysts believe that the French government planned on keeping most of the business within the former monopoly’s grasp.
Since then, several other countries have learned from France’s mistakes. Italy and Spain are looking at legalizing and regulating online gambling, but have proposed less imposing tax regulations for online casino operators. Because of this, these two markets are expected to thrive, reclaiming a large portion of the black market.