Following a second quarter 2020 of loss of activity due to the cessation of sports competitions, the online gambling market recorded a spectacular recovery in the third quarter 2020 marked by a turnover growth of 25% compared to the second quarter 2020. The market even recovered to a level significantly higher than the one before the health crisis, with a turnover growth of 17% compared to the third quarter of 2019, coupled with an increase of 29 % of the number of players (i.e. 2.7 million players). All these elements together contribute to consolidate the online gambling market growth on particularly dynamic foundations, in line with the trends observed over the past two
Online sports betting: a record volume of stakes (+ 49%) mainly generated by football
Despite a betting offer without several major competitions such as the UEFA Euro, the Summer Olympics and the Wimbledon tennis tournament, the level of betting activity has seen a spectacular increase by 49 % compared to the third quarter of 2019 and amounted to 1.6 billion euros. This volume of stakes corresponds to the highest amount recorded in a quarter for 10 years. The sports betting segment has once again become the dominant activity in the online gambling market and recorded a turnover of 228 million euros in the third quarter of 2020, with however the average spending per player level decreased by 22% (104 euros).
The number of players has indeed significantly increased
(+37% compared to the third quarter of 2019) and particularly among 18-24 year olds players whose number has increased by 115% compared to the second quarter of 2020. This attests that the demand is very sensitive to the attractiveness of the sports calendar.
The sports bettors’ stakes have mainly focused on football matches and competitions, which represent 64% of the activity for a total of more than 1 billion euros in stakes. Highlight: Champions League final between Paris Saint-Germain and Bayern Munich becomes the second sporting event to concentrate the most stakes since the opening of the market with more than 31 million euros in stakes. It is only beaten by the final of the 2018 FIFA World Cup, which generated 38.5 million euros in stakes.
This dynamic of activity is also evident in the physical distribution network. Indeed, the FDJ communicated an increase of sports betting stakes by 27% in the third quarter, all channels combined (online and physical network). The operator's performance over the summer period thus made it possible to almost cushion the drop in stakes recorded on this gaming segment in the first half of the year (-39%).
Online horse racing betting: continuous growth (+ 34%) and a record volume of stakes
The online horse racing betting stakes recorded this quarter grew up to 34%, in line with the growth observed during the previous quarter. The activity generated 363 million euros in stakes, which corresponds to the highest amount of stakes recorded in this gaming segment in a quarter.
This growth results both from the increase of the number of bettors (+ 12% compared to the third quarter of 2019, for a total of 347.000 euros) and from the increase of the average spending per player (+ 18% to reach 251 euros).
A same rebound in the third quarter can be observed in horse racing bets taken on a physical network: the PMU reports an increase of 8% in this network and a total of bets of 2.35 billion euros over this quarter, all channels combined, best performance over the period in PMU's history.
Online poker: continuation of a high dynamic initiated during the lockdown (+36%)
The poker market recorded another very significant increase this quarter. In fact, the turnover over the period is approximately of 90 million euros, an increase of 36% compared to last year.
The online poker segment activity therefore continued to show a very strong momentum during the quarter, which is driven by the increase of the number of participants by 37% compared to last year. However, it has significantly slowed down compared to the second quarter, which saw the segment turnover reach 142 million euros for a number of around 1.1 million players. The average spending per player, however, has not changed compared to last year and are stagnating at 102 euros.
During the first quarter 2020, the ANJ welcomed the behaviour of online poker operators who, during the first lockdown, relayed the main advices to promote the recreational gaming practices and prevent the risks related to the intensification of gambling and the increase of excessive gamblers. In the current context, the ANJ encourages all operators to be very vigilant in this area, by stepping up their actions to protect players, and by promoting the new game moderation mechanisms applicable since October the 1st.
Total online gambling market in 2020: +11%
All in all, despite the lockdown, the global turnover of the online gambling market reached 1.2 billion euros over the first 9 months of the year, an increase of more than 11% compared to 2019. This recovery is benefiting all gaming segments, with records for online sports and horse racing stakes.
For Isabelle Falque-Pierrotin, ANJ Chairwoman:
"This online gambling market recovery must be accompanied by greater accountability from operators. Indeed, unlike the first lockdown, the sports and horse betting gambling offer is widely available and this situation can constitute a breeding ground for the development of excessive or risky practices for people weakened by this unprecedented context ".
The ANJ in brief
The “Pacte” Act and the ordinance of October 2, 2019 reforming the regulation of gambling have set up a new gambling regulatory authority (ANJ).
It follows ARJEL with a significantly extended regulatory scope and enhanced powers.
The ANJ is now responsible for all components of the legal gambling market, both online and offline:
online games that ARJEL regulated, such as sports betting and horse racing betting and poker offered by the 14 licensed operators;
all the games of La Française des Jeux or the PMU sold in physical points of sale or online;
237 racecourses;
201 casinos and Parisian gaming clubs, with the exception of anti-money laundering issues and the integrity of the games offered, which remain under the responsibility of the Ministry of Home Affairs.
https://www.anj.fr/anj-publishes-results-online-gambling-market-3rd-quarter-2020-spectacular-recovery-all-gaming