The gaming industry in France, like many sectors worldwide, experienced a tumultuous journey through the pandemic era. However, amidst the challenges, it showcased resilience and adaptability. The year 2021 emerged as a pivotal period, marked by a notable resurgence fueled by online platforms and gradual easing of restrictions.
Resilience and Rebound
In the wake of pandemic-induced restrictions, 2020 witnessed a significant downturn in gaming activities across France. However, the subsequent year, 2021, heralded a promising turnaround. Revenue surged by a commendable 7% year-over-year, indicating a robust resurgence in consumer engagement. Notably, the enthusiasm for online sports betting emerged as a primary driver of this growth trajectory.
Online Dominance and Monopoly Operators
The online gaming sphere emerged as a beacon of growth, with staggering figures underscoring its dominance. Gross gaming revenue (GGR) for online sports betting witnessed an impressive 44% surge, catapulting to over €1.3 billion. This surge in online activity was chiefly orchestrated by France’s monopoly operators, La Francaise des Jeux (FDJ) and Pari Mutuel Urbain (PMU). Together, these entities accounted for over half of the total GGR in 2021.
FDJ, the frontrunner, showcased exceptional performance, raking in over €5 billion in GGR, surpassing pre-pandemic levels. In contrast, PMU experienced a more modest growth trajectory, with GGR amounting to approximately €1.6 billion. However, PMU’s performance still fell short of its 2019 benchmarks, highlighting the lingering impact of the pandemic on certain sectors within the gaming industry.
Casino Challenges Amidst Recovery
While online platforms flourished, traditional brick-and-mortar casinos continued to grapple with the ramifications of the pandemic. As of October 31, 2021, casino GGR witnessed a sharp decline of 41% year-over-year, reflecting the enduring challenges faced by this segment. The ‘hard’ game offerings, synonymous with the casino experience, bore the brunt of pandemic-induced restrictions, impeding recovery efforts.
Long-Term Growth Trajectory
Despite the setbacks encountered during the pandemic, France’s gaming market has exhibited a resilient growth trajectory over the years. Since 2017, the overall GGR has demonstrated a commendable increase of nearly 7%, surging from €10 billion to approximately €10.7 billion. This sustained growth narrative underscores the industry’s ability to navigate through adversity and adapt to evolving consumer preferences.
Online Gaming’s Ascendancy
A notable aspect of the gaming landscape’s evolution is the ascendant role of online platforms, particularly in the realm of sports betting. In 2017, online games accounted for a mere 9.5% of the sector’s turnover. However, by the end of 2021, this figure soared to approximately 20%, signifying a paradigm shift in consumer behavior. The allure of online gaming platforms, characterized by convenience and accessibility, has reshaped the industry’s landscape and redefined traditional paradigms.
Embracing Change and Charting the Future
France’s gaming industry has weathered the storm of the pandemic, emerging stronger and more adaptable. The convergence of online platforms, coupled with the resilience of traditional operators, has paved the way for a dynamic and evolving landscape. As the industry navigates through the post-pandemic era, embracing innovation and consumer-centric strategies will be pivotal in charting a prosperous future. From the resurgence of online sports betting to the enduring appeal of traditional casinos, France’s gaming industry stands poised at the precipice of transformation, ready to embrace the opportunities that lie ahead.