GPWA Times Magazine - Issue 17 - September 2011

–PokerStars.fr andWinamax.fr rank seventh and ninth on PokerScout’s list of largest poker networks – online poker executives say they are not making money in Europe’s second-largest market and will have to close if major changes are not made. The amount of money wa- gered in France on poker has actually increased in the first six months of 2011 compared to the final six months of 2010, accord- ing to data provided by ARJEL. In 2010, €415.706 million were wagered in cash games and tournament fees. During the first six months of 2011, that number rose to €553.774 million. But even with revenues rising, online pok- er executives are warning that the cost of doing business in France is too high. “The more you recruit new play- ers, the more you lose money,” said Alexandre Balkany, the general director of PokerStars.fr, at the GESTE confer- ence, according to ZDnet. “In France, players lose their money twice as fast as everywhere else because of taxes and rake. Half the time we lose money and high-roller players move to non-licensed websites. Mathematically, it is impossible to make money with poker. We will be able to do whatever we want, [but] if rake doesn’t change . . . we will have to leave the market.” France taxes 2 percent of every pot in poker – regardless of whether a flop is seen. One online poker room has already pulled the plug. This summer, 200 Percent Poker closed when it couldn’t succeed despite significant insti- tutional advantages. 200 Percent Poker was owned by a consortium of 40 land- based casinos in France. The consortium, La Société Française des Jeux sur Internet (SFJI), elected to use the joint Microgaming- 888 French poker network (Prima) to build liquidity. SFJI launched 200 Percent Poker in September 2010. And less than a year later, 200 Percent Poker – an online poker room with land-based ties using proven software in a highly regulated market – was out of business. Efforts to reform the tax system for on- line gambling have failed so far. A June proposal to switch to taxation of gross gaming revenue wasn’t considered be- cause it lacked support in the French National Assembly. SOURCE: ARJEL “Despite attracting sizable audiences — PokerStars.fr and Winamax.fr rank seventh and ninth on PokerScout’s list of largest poker networks – poker executives say they are not making money in Europe’s second- largest market and will have to close if major changes are not made.” Other sports 4% Handball 1% Rugby 3% Volleyball 4% Basketball 6% Tennis 25% Football (Soccer) 57% 55 Online betting in France – a taxing situation