France's Iliad Gaming Exits Online Gambling Market

Published Sunday, July 08, 2012 -

The French online gambling market has been a difficult go for certain operators and those who are finding it unprofitable or too complicated have decided to leave the jurisdiction. Among them is Iliad Gaming a subsidiary of the telecommunication service provider Iliad S.A. Iliad Gaming offered online poker and a sports betting service to the newly liberalized French internet wagering market.

The bottom line has prompted the exit from France’s gaming market by the firm with the Chief Financial Officer and Chief Development Officer Thomas Reynaud saying to LaTribune, "This is not the heart of our business. The competitive environment and the online games tax regime do not support a new market player or allow the company to operate viably," The is means the Iliad Gaming websites Chilipoker and Chilipari, which run jointly with Gameinvest Holdings, will no longer be available to customers. This scenario has been repeated often of late as new comers to the online gambling industry in Europe are finding it more difficult to compete and cope with taxes that are too big to support a profitable margin. Reynaud revealed that Iliad Gaming websites have suffered cumulative losses of Euro 4 million in the last two years.

However, La Tribune noted that other operators posted even worse results such as Française des Jeux, Groupe Lucien Barrière and Karmitz-owned LB Poker with almost a Euro 30 million loss to 3.3 million in revenue and others who have also experienced substantial losses including BetClic’s Everest Group and TF1 or EurosportBET. France intends to review its tax regime in order to give operators a chance to make some profit form a saturated and complicated market in the French domain. European Commission efforts to create a harmonized regulatory platform was helped by France’s compliant legislation on online gambling. Applicants have to provide the ARJEL with economic, accounting, and financial information, as well as a description of the applicant’s online gambling website.

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