PMU boss to step down, French casinos’ dual talk on iCasino
PMU’s Malecaze-Doublet to leave in Sept, Analysis: twin tracks for French casinos on online regulation
Good morning, on Gaming&Co today,
PMU boss to step down as clashes with stakeholder take their toll
Twin tracks: CdF’s dual talk on online casino regulation
UK casino review, Québec war of words
News shorts: Holland, Gambling.com, Flutter
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PMU boss set to end unhappy tenure in September
Move is not surprising due to institutional stakeholder SETF’s long-standing opposition
Riding off: Emmanuelle Malecaze-Doublet is set to leave her role as CEO of PMU in September following the ongoing deterioration of her relations with the trotting trade group SETF, one of the two bodies that supervises the French horse racing tote operator. She will join Galileo Global Education, a leading supplier of private education services, as its new CEO.
The move by Malecaze-Doublet is not a surprise following a prolonged period of hostile briefing by SETF, but the situation is complicated by ongoing tensions between SETF and France Galop, PMU’s other institutional stakeholder, which is supportive of Malecaze-Doublet. The two groups hold 95% of the voting rights in the pari mutuel operator.
PMU reported a 2% drop in GGR to €1.7bn in 2024, although player numbers were up 6% to 3.5 million, the first time they have reached levels last seen in 2019.
From a strategic perspective, the group has launched a tender to assess new online sports betting providers. It has been offering fixed odds sports betting via an agreement with OpenBet and managed by Paddy Power B2B since 2010.
Read the full article on SBC News
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Analysis: French casinos’ dual-track mission
Casinos de France holds key power in relation to iCasino regulation and keeps options open
Hard to decipher: French land-based casinos have consolidated their lobbying position in the past six months and are likely to decide, or at least play a major role, in whether online casino regulation goes ahead in France. For all the talk and speculation on the topic however, statements by the country’s main trade body Casinos de France can leave listeners perplexed as to its exact position on the issue.
No appetite: Listening to executives discuss how casinos provide key cultural and social links to French towns up and down the country during CdF’s annual general meeting last week, there seemed to be very little appetite or desire to regulate online casinos.
One of the first comments by Philippe Sueur, mayor of Enghien-les-Bains, which hosts the flagship Barrière casino where the AGM was taking place, was to congratulate the trade group for its work on repealing the Barnier government’s October amendment to regulate digital casinos.
“The cultural role of casinos is very important and could not be replaced by an online casino. That is why we opposed Bercy (the Ministry of Finance) on the regulation of online casinos,” he said.
Another executive added that the 60,000 jobs the sector creates can not be “dematerialised or delocalised" and it was vital the government supported them.
Side talk
For all those statements however, there is also acknowledgement that the current situation, where the vertical is not legal but a vast illegal market operates in France, is not tenable. One executive told G&Co that the issue has reached such a stage that “adopting an ostrich policy” was no longer viable and needed to be dealt with.
Politics&co: On the political front, CdF acknowledged that getting support from MPs was easier than it had been in the past, but also lamented what it saw as a general lack of political support.
Nonetheless, with the help of 100s of mayors and MPs, CdF and its Chairman Grégory Rabuel successfully organised a fight back against October's online casino amendment, which he described as “a side deal” agreed between a small number of interested parties.
When it comes to taxes, the government has increased French casinos’ social contributions from 11,2% to 11,9%, but they have also avoided the fate of online bookmakers, whose GGR taxes are rising to nearly 60% from July.
This was achieved thanks to “the constructive budget talks CdF held” with lawmakers. As one industry observer noted, “other industries would be pleased with even a fraction of that support”.
Trompe l'œil: Meanwhile, France’s online gambling trade group AFJEL said the country’s strong OSB growth in 2024 was due to major events like Euro 2024 and the Paris Olympics and that digital market share was just 20% in the country, compared to 39% in other European markets.
Territorial talk: Although it made a point of mentioning the €1.4bn that it contributed in taxes in 2024, AFJEL is also emhpasising its presence in French territories and the jobs that derive from it, just like CdF. It said France’s operators are leading tech players that employ around 11,200 staff, with one job creating 4.7 jobs in France.
AFJEL Chairman Nicolas Béraud said there was “an urgent need to relaunch discussions on the legalisation of online casinos and to re-establish fair conditions for a balanced industry”.
He added that the online industry's dynamic was “boosted by an exceptional sporting calendar” but that its growth was “deceptive” and the GGR tax rise due in July “will threaten the viability” of online operators.
Push me pull you
As for CdF supporting, or not, online casino regulation, it often sounds as if it is opposed to regulating the vertical, even though it never says so in so many words. However, its position could be interpreted as not supporting a push towards legalisation, but, if it were to happen, it would put all its resources into ensuring its JADE project is adopted. Having said that, in such a context, it’s also important to remember that “François Bayrou is not pro-gambling”, according to numerous contacts.
Rabuel also noted that with the postponement of the working committees that were due to determine the regulatory framework of online casino in January, the time was right for “calm discussions” with the government to avoid “the psychodrama” that last October’s amendment caused.
He also reiterated the point that “CdF was not against modernisation” (in the form of iCasino regulation), but will continue to push for its JADE project. In addition, while there is no timetable, it will make the case for its members to operate online casinos and will “clarify JADE for the authorities, because people must be able to understand how it would work from a technical perspective”. Sources described the move as “putting flesh on the bones” of the project.
Channel surfing: But Rabuel also echoed the words of FDJ United CEO Stéphane Pallez when he noted that legalising iCasinos would not be a silver bullet to channelling players towards legal sites. “I would remind you that in all the European countries where online gambling (casino) has been legalised, there is still 30%-60% of illegal online gaming,” he said.
Still, being ready for all eventualities is always the best option and CdF has no intention of being caught out by events again.
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UK publishes proposal to update casinos
Machine reforms form part of updates to 2005 and 1968 Acts
Machine love: The UK’s Department for Culture, Media and Sport (DCMS) has published draft proposals outlining regulatory changes for casinos, supporting the 2023 Gambling Review. The amendments aim to modernise casino operations by updating outdated provisions from the Gambling Acts of 2005 and 1968. Key reforms requested by operators include increased gaming machine entitlements, a new machine-to-table ratio, permission for sports betting, relaxed membership rules and simplified licensing.
One proposal sets out to allow converted casinos up to 80 gaming machines, subject to floor size and machine-to-table ratios. It includes a tiered system and shared caps for co-located casinos.
Another request is that venues adopting new entitlements submit updated floor plans indicating gambling and table gaming areas. These changes require no impact assessment and will be enacted via secondary legislation.
While the government supports reform, no timeline has been set for implementation, though updates are expected before the end of 2025.
Québec war of words continues
Loto-Québec refuses to entertain idea of iGaming regulation in the province
Barely half: Québec’s Online Gaming Coalition has once again critcised the regulatory set up in La Belle Province. Gaming News Canada reported spokesperson Ariane Gauthier’s comments that Loto-Québec was reaching, “at best, just 50% of Quebec’s online players”.
Added Gauthier: “This was confirmed by its president, Jean-François Bergeron, during Loto-Québec’s budget estimates (on 9 May). Simultaneously, Finance Minister Eric Girard acknowledged that the government has no legal way to enforce Loto-Québec’s online monopoly.”
She said the model was "clearly failing” and asked how the government could “justify protecting only one in two online players when, in Ontario, opening the market to private operators has resulted in 83.7% of online gaming activity being conducted within a regulated environment?”
QOGC includes operators such as Bet99, DraftKings and FanDuel, its war of words with Loto-Québec has been going on for close to two years, but the province’s monopoly and Finance minister Girard continue to reject the idea of online gambling regulation in the jurisdiction.
Alberta meanwhile has held a third reading of its iGaming Alberta Act and it now only needs Royal Assent from Lieutenant Governor Salma Lakhani to make it law. Regulated launch of the province is due for early 2026.
News shorts
The Dutch government has decided against privatising its national lottery Nederlandse Loterij and Holland Casino. It said it “is currently not feasible and proportionate” and “not in line with its vision on gambling” as it would require major changes to legislation and regulations that would pose risks and leave citizens unprotected against gambling damage. The authorities said they may look at privatisation again in the future.
Gambling.com’s Q1 revenues rose 39% YoY to a record $41m, as it delivered 138,000 in NDCs (+29%), to clients during the quarter. Its marketing services division increased revenues by 13% to $31m in the process and sports data increased revenues 405% to nearly $10m thanks to its acquisitions of OddsJam and OpticOdds.
Adj. EBITDA increased 56% YoY to a record $15.9m, with margins coming in at 39%. The group reiterated FY25 revenue and adj. EBITDA guidance of $170m-$174m and $67m-$69m, an annual growth of 35% and 40% respectively.
CEO Charles Gillespie said “each day we are moving closer to our goal of generating $100 million in annual adj. EBITDA”.
Flutter has completed its acquisition of 56% of Brazilian operator NSX Group, which operates the Betnacional brand, for $350m and will merge it with its Betfair Brazil business. The New York-listed as an option to acquire the entirety of the group in the next five to 10 years and will hope it will help it recover in the region as it recorded a 44% YoY drop in Brazil revenues in Q1 and said it expects Bernacional to record c$70m adj. EBITDA loss in 2025, although it will add $220m in revenue to the group.
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Calendar
Results: 16 May: Codere Online, 21 May: Better collective
Events: 23 May: Swedish Trade Association for Online Gambling lunch seminar, Stockholm, 10-12 June: SBC Summit Malta, 5 Jun: Gaming in Holland, Amsterdam, 26 Jun: Gaming in Spain, Madrid
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