French gamblers lose value in new regime
Sports bettors in France are getting worse value for money under the new operating conditions for Internet betting that came into force ahead of the World Cup in June 2010.
GBGC has conducted some research comparing the odds being offered on .com sports books versus .fr sports books. Given the high tax on stakes and payout stipulations, it is not surprising to find that the French consumer is worse off betting with the French regulated sports books than with the equally well-regulated sports books located in low-tax jurisdictions offshore.
Based on GBGC’s sample of matches the .com sports book was operating to an average theoretical margin of 7.44% on 1×2 football betting.
The .fr sports book was operating to an average theoretical margin of 12.46% on the same sample of football matches. This represents a 67% increase in theoretical margin over the .com sports book.
Of course, the result of this is that the winning customer suffers in the form of lower winnings on their bet. If EUR10 had been placed on the correct result in the GBGC sample of matches, the gambler on the .com sports book would have received EUR49.8 in winnings (not including stake), the .fr gambler EUR43.1. The French gambler has lost out by EUR6.7 (or 15.5%) compared to their .com companion.
Gamblers will, of course, realise that their betting funds are not lasting them as long as when they used offshore sports books with higher payouts. Will they seek out these “illegal” operators again or continue to persevere with the poorer value being offered by the domestically licensed firms?