1 31 March 2012 Quarterly analysis of the online games market in France 1st quarter 2012 © French Authority for the Regulation of Online Gaming 2 Summary of activity data The findings below are based on the data that accredited online betting and gaming operators have transmitted weekly and quarterly. Most of the indicators given concern the 1st quarter of 2012. This study only looks at active player accounts, i.e. those that have played at least once over the period. Sports bets In the 1st quarter of 2012, the amount placed in on‐line bets is up by 14% over the 1st quarter of 2011. The increase in the amount of bets is across all sports except tennis. The operators’ turnover (GGI ‐ Gross Gaming Income) rose by 7% from Q1 2011 and Q1 2012. The difference between the amounts bet and GGI is due to a lower Return on Investment (ROI) in 2012. The number of active player accounts each week has remained relatively stable from 2011 to 2012 at comparable periods (109,000 per week in Q1 2012 versus 111,000 in Q1 2011). Sports bets Bets Gross Gaming Income Q1 2011 €154m €35m Q1 2012 €175m €37m Difference +14% +7% Horse racing betting On‐line horse‐racing betting is also up in relation to 2011. Bets for the quarter are 13% above those of the first quarter of 2011, whilst operators’ GGI is up by 20%. The number of active player accounts each week is also significantly up, after 18 months of overall stability (154,000 active player accounts each week on average in Q1 2012, versus 140,000 in Q1 2011). In terms of the attractiveness of the offer, the sharp fall in the GGI net of bonus‐2 points between Q1 2011 and Q1 2012 was balanced by the distribution of significant bonuses and the addition of a number of foreign races to the calendar of events on which bets are placed. Horse racing betting Bets Gross Gaming Income Q1 2011 €257m €58m Q1 2012 €291m €69m Difference +13% +20% Poker In the 1st quarter of 2012, the cash‐game market saw a 5% fall in the level of bets, whilst tournaments have continued to rise, with entry fees rising by +26% between Q1 2011 and Q1 2012. In spite of the good conduct on tournaments, operators’ gross gaming income has fallen by 3% in relation to the 1st quarter of 2011, in spite of an average number of active player accounts per week up by 1% from 2011 to 2012 (323,000 in Q1 2011 versus 327,000 in Q1 2012). Poker Q1 2011 Cash game bets €2,029m Tournament entry fees Gross Gaming Income €292m €86m (*) Using the comparable accounting method © French Authority for the Regulation of Online Gaming Q1 2012 €1,698m €1,930m (*) €367m €83m Difference ‐5% (*) +26% ‐3% 3 Summary of qualitative data In Q1 2012, almost 1.3 million player accounts were active in at least one of the three regulated activities. In total, online players paid €297m into their accounts during Q1 2012, which corresponds to an average of €73 per month and per player account. This amount is equivalent overall to that noted in Q1 2011, where average monthly deposits stood at €74. On average, each player account was topped up 2.3 times a month in Q1 2012, versus 2 times a month in Q1 2011. On‐line gaming and betting operators spent €48m in the media for their marketing budget, i.e.44% less than in Q1 2011. Sports bets In sports bets, the total number of active player accounts fell slightly (‐3%) between Q1 2011 and Q1 2012. As in the previous quarter, that reduction is mainly due to the fall in the number of player accounts in the age 18‐24 category, where the population has fallen by 44%. Mobile gaming (mobile telephones, smart phones, or tablets) continue to spread amongst sports punters. This shows that 15% of sports punters connect via the supports in Q1 2012, i.e. twice as many as in Q1 2011. Horse racing betting In horse racing betting, the number of active player accounts has crept up by 9% between Q1 2011 and Q1 2012. This increase mainly affects the older players, with the age 35‐54 population segment increasing by 10%. The use of mobile supports is also on the rise amongst horse‐racing punters: in Q1 2012, 12% connected via a telephone or a digital tablet, as opposed to 8% in Q1 2011. In the 1st quarter of 2012, on‐line horse‐racing betting increased overall across France, although race‐goers – mainly from rural areas – continue in the majority to come from North‐Western France, where equine culture is at its strongest. Poker The number of active poker player accounts is down by 3% compared with Q1 2011 and Q1 2012. That reduction is mainly attributable to the loss in impetus of the cash‐game activity, with 9% fewer players from one period to the next, whereas the tournament activity has increased by 3%. This fall in the number of player accounts mainly affects players aged under 55. As for other activities, the 18‐24 age group is the most affected, losing 20% of its player accounts. In Q1 2012, 15% of poker players used a mobile support, whereas the figure stood at just 4% in Q1 2011. © French Authority for the Regulation of Online Gaming 4 Contents 1. Last‐quarter activity..................................................................................................................................... 5 a. Market data at the end of March 2012....................................................................................................... 5 i. Sports bets................................................................................................................................................... 5 ii. Horse racing betting .................................................................................................................................... 8 iii. Poker.......................................................................................................................................................... 10 2. Breakdown of the population of active player accounts .......................................................................... 12 a. Active player accounts trends per activity................................................................................................. 12 b. Breakdown of active player accounts per age group ................................................................................ 13 c. Breakdown per gender .............................................................................................................................. 15 d. Breakdown per geographic origin ............................................................................................................. 16 i. Sports bets................................................................................................................................................. 16 ii. Horse racing betting .................................................................................................................................. 18 iii. Poker.......................................................................................................................................................... 19 e. Breakdown of the player accounts population into bets accumulated ..................................................... 21 i. Sports bets................................................................................................................................................. 21 ii. Horse racing betting .................................................................................................................................. 22 iii. Poker.......................................................................................................................................................... 23 f. Player accounts generating the most bets ................................................................................................ 25 3. Topping up habits ...................................................................................................................................... 26 a. Amounts and payment frequencies........................................................................................................... 26 b. Payment methods used ............................................................................................................................. 27 4. Gambling habits......................................................................................................................................... 28 a. Player accounts connection times ............................................................................................................. 28 b. Connection devices used............................................................................................................................ 29 5. Marketing expenses of accredited operators ........................................................................................... 30 a. Monthly trends of accredited operators' media budgets .......................................................................... 30 b. Breakdown of operators' total marketing expenses ................................................................................. 31 © French Authority for the Regulation of Online Gaming 5 1. Last­quarter activity a. Market data at the end of March 2012 i. Sports bets Figure 1: Weekly sports betting trends In the first quarter of 2012, after a subdued 2011, sports betting rose by 14% with respect to the 1st quarter of 2011. In the 1st quarter of 2012, weekly bets averaged €13.3m, as against €11.7m at comparable periods in 2011. Almost 29 million bets were recorded in 3 months, as against 27 million in the 1st quarter of 2011. Active player accounts bet an average of €123 per week and €6 per bet (as against €120 per week and €6.10 per bet in 2011). Table 2: Quarterly trends for sports bets and gross gaming revenue for this sector
Sports bets Bets Gross Gaming Income Players' ROI (excluding bonuses) Bonuses given out Players' ROI (including bonuses) Q3 2010 €189m Q4 2010 €200m 2010 (*) €448m Q1 2011 €154m Q2 2011 €146m Q3 2011 €137m Q4 2011 €154m 2011 €592m Q1 2012 €175m €38m €31m €79m €35m €25m €27m €28m €115m €37m 80% 84% 82% 78% 83% 80% 82% 81% 79% €6.1m €3.4m €9.5m €2.7m €2.9m €2.4m €2.5m €10.5m €3.4m 83% 86% 85% 79% 85% 82% 83% 82% 81% (*) Including one month in Q2 2010 In the first quarter of 2012, the ROI was up with respect to the rate observed in Q1 of 2011. However, that rate – of 79% net of bonuses and 81% including bonuses – remains under the average ROI for 2011. In spite of the low ROI, thanks to the richness and attractiveness of the offer of sporting events in the first quarter of 2012, the total bets generated exceeds the figures observed in 2011, and is almost at the level of the third quarter of 2010. © French Authority for the Regulation of Online Gaming 6 The fall in the ROI net of bonuses has allowed operators to apply more gross income to bets at equivalent levels of betting. To the contrary, the increase in the bonus amounts distributed to players may have enabled the retention (or return) of some players who were on the way to becoming inactive. The first quarter of 2012 showed more stability in respect of weekly bets. However, one aspect should be noted: in 2011, European national championships took a breather in the last week of March, giving a partial explanation for the fall in the level of bets. That “truce” did not occur in 2012. In the 1st quarter of 2012, two one‐off events of international scope were noted:  the European Handball Championships, which led to bets worth €2.5m,  the Africa Cup of Nations in football, with bets of €2.6m Setting aside those two significant events, the offer for the first quarter of 2012 was more or less identical to that for the first quarter of 2011. The main recurring events of the period recorded an overall increase of 29%, and only the Australian Open, the first tennis Grand Slam tournament of the year, showed a level of betting lower than that of 2011. Table 1: Bets recorded on the main recurring sports competitions of Q1 2011 and 2012 Competition Six Nations Championships Australian Open Ligue 1 Ligue 2 Champions League Europa League TOTAL Bets Q1 2011 €1,606 k Bets Q1 2012 €2,270 k Trends +42% €5,622 k €10,979 k €2,823 k €5,002 k €3,359 k €29,385k €5,346 k €15,258 k €5,079 k €5,506 k €4,180 k €35,369k ‐5% +39% +80% +10% +24% +20% It can be seen that recurring events with a significant level of media coverage were able to attract sporting punters in the first quarter of 2012. Thus, Ligue 1 and Ligue 2 as well as the Six Nations Rugby Championship generated bets significantly higher than those noted in 2011. Figure 2: Breakdown of 2011 bets per sport At the start of 2012, football and tennis remained the punters’ favourite sports, even though tennis accounted for just 19% of bets for the quarter. It should be noted that in 2011, at the end of the 1st quarter, tennis accounted for 24% of the total sports bets placed, as opposed to 54% for football. st
Key: At the close of the 1 quarter of 2012, 59% of bets placed concerned football. The 14% increase in bets is thus unevenly distributed across the different disciplines on which bets are placed: © French Authority for the Regulation of Online Gaming 7 Table 3: Betting trends per sport between Q1 2011 and Q1 2012
Sports Football Tennis Basketball Rugby Volleyball Handball Other sports Trends +27% ‐13% +32% +36% ‐1% ‐25% ‐7% The fall in betting on handball is explained in particular by the differences in events between 2011 and 2012: The 2011 World Cup was held in 2011, and attracted over €3m in bets. As was observed at the end of 2011, bets on tennis are falling, even though the fall is smaller in this quarter (‐13% in Q1 2012, versus ‐36% in Q4 2011 as compared with Q4 2010). It should be noted that overall, in Q1 2012, 49% of amounts were bet directly for 24% of bets (as against 52% of amounts and 23% of bets in 2011). This slight fall in direct betting is explained in particular by the smaller share of tennis bets during the quarter. The sport recorded an average of 72% of direct bets. Table 4: Bets recorded on sports competitions in France and estimation of the betting duty
Bets on competitions in France Estimation of the betting duty Q3 2010 €19.0m €190k Q4 2010 €34.0m €340k Q1 2011 €19.6m €205k Q2 2011 €35.2m €368k Q3 2011 €19.4m €203k Q4 2011 €27.9m €291k Q1 2012 €36.2m €379k The 85% increase between Q1 2011 and Q1 2012 in the amount bet on events in France subject to betting duty is explained by various factors:  the general rise in sports bets (e.g. Ligue 1 and 2, Six Nations, etc.),  the calendar slippage of certain events (e.g. the League Cup). © French Authority for the Regulation of Online Gaming 8 Figure 3: Weekly trend in the number of active player accounts in sports bets
During the 1st quarter of 2012, the level of active player accounts each week in sports bets has shown overall greater stability than in preceding quarters. On average, 109,000 player accounts were active each week, slightly less than in 2011, when almost 111,000 accounts were actively each week. It should be noted that setting aside the first week of the year, sports bets each week brought together at least 100,000 active player accounts on accredited sites. In total, 338,000 player accounts were active in sports bets during the first quarter of 2012. ii. Horse racing betting Figure 4: Weekly horse racing betting trends In the first quarter of 2012, horse‐racing betting confirmed 2011 trends and remained at a high level. The quarter's betting total is up by 13% compared with Q1 2011. © French Authority for the Regulation of Online Gaming 9 During the first three months of the year, horse‐racing betting stood at €22.2m per week on average (as compared with €19.5m observed for the same period in 2011). The record for general bets generated in a single week was beaten at the beginning of January, with bets of €24.2m. Almost 68 million bets were recorded in one quarter, with an average unit amount of €4.30. Each active player account placed €144 per week with accredited operators’ sites. Table 5: Quarterly horse racing gross gaming revenue and betting
Horse racing betting Bets Gross Gaming Income Players' ROI (excluding bonuses) Bonuses given out Players' ROI (including bonuses) Q3 2010 Q4 2010 2010 (*) Q1 2011 Q2 2011 Q3 2011 Q4 2011 2011 Q1 2012 €186m €240m €452m €257m €255m €254m €268m €1,034m €291m €39m €51m €99m €58m €54m €65m €66m €243m €69m 79% 79% 78% 78% 79% 74% 75% 76% 76% €4.9m €5.9m €10.8m €3.8m €3.7m €8.6m €4.0m €20.1m €6.6m 82% 81% 80% 79% 80% 78% 77% 78% 79% (*) Including one month in Q2 2010 The widening of the on‐line horse‐racing betting offer has been confirmed, in particular given the increasing number of foreign races, which represent 20% of races on which bets are placed in the first quarter of 2012 (mainly in Belgium, South Africa, the United Arab Emirates, and Spain). In parallel, the total number of races open to bets, across all operators, is up by 14% from Q1 2011 to Q1 2012. Figure 5: Weekly trends in the number of player accounts that are active in horse‐racing betting Concerning horse‐racing betting and from the point of view of the trend in the number of active player accounts, the seasonal nature of trends has been confirmed. In mid‐February 2012 – as in 2011 – peaks were observed on betting web sites, reaching almost 165,000 active player accounts in a single week. To the contrary, at the end of March and with the end of the trotting season, the weekly level fell to 135,000 active player accounts. The number of active player accounts each week is on average 10% higher in 2012 than in the previous year. In total, 316,000 player accounts were active in horse‐racing betting in the first quarter of 2012. © French Authority for the Regulation of Online Gaming 10 iii. Poker Figure 6: Weekly cash game betting trends At the beginning of 2012, certain operators change their method of calculating cash‐game bets, with the aim of harmonising the method of calculation for all operators. In order to be able to make comparisons with financial year 2011, those same operators also sent ARJEL the figures obtained using the old method. Thus, the graph below presents three indicators:  the curve showing the trend in cash‐game bets in 2010‐2011, based on the old accounting method,  the curve showing the trend in cash‐game bets in 2011‐2012, also based on the old accounting method (dotted curve),  the curve showing the trend in cash‐game bets in 2011‐2012, according to the new accounting method (solid curve). Thus, it can be observed that using comparable accounting methods, the fall in bets from Q1 2011 to Q1 2012 is 5% for the cash game. The average betting amount per week comes to €130m in Q1 2012. The average bet per active player account per week is €870. Figure 7: Weekly tournament entry fee trends Poker tournament activity remains very dynamic, showing an increase of 26% in total entry fees generated in the 1st quarter of 2012, compared with the same period in 2011. © French Authority for the Regulation of Online Gaming 11 The weekly average is thus €24.6m in cumulative entry fees, as opposed to €22.1m in 2011, at comparable periods. The level of €30m in one week was reached in mid‐February 2012. Average entry fees per player account are up in relation to the figures for 2011 (€96 per week in Q1 2012, as opposed to €85 in 2011). Table 6: Quarterly trends for gross gaming revenue, bets and entry fees in poker
Poker Q3 2010 Q4 2010 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 2011 Cash game bets €1,782m €1,923m €3,705m €2,029m €1,854m €1,840m €1,869m €7,593m €151m €261m €412m €292m €278m €265m €324m €1,159m €367m €58m €81m €139m €86m €78m €74m €76m €314m €83m 97% 96% 97% 96% 96% 96% 96% 96% 96% €16m €20m €36m €17m €18m €15m €19m €69m €15m 98% 97% 98% 97% 97% 97% 97% 97% 97% Tournament entry fees Overall Gross Gaming Revenue Players' ROI (excluding bonuses) Bonuses given out Players' ROI (excluding bonuses) Q1 2012 €1,698m €1,930m (*) (*) Total bets using comparable method In spite of falling figures for the cash game, the proper conduct of the tournament activity enables poker operators to keep the fall in Gross Gaming Income to 3%. Figure 8: Weekly trends in the number of active player accounts for poker
In the 1st quarter of 2012, an average of 327,000 player accounts were active each week, slightly more than 2011, where the figure was 323,000 on average for the same period. The first three months of 2012 recorded never‐before seen usage peaks – 345,000 active player accounts in the same week at the beginning of February – and clear falls in usage, in particular at the end of March, when the level fell below the 300,000 mark. In the first quarter of 2012, 87% of active player accounts in poker took part in at least one tournament, and 62% of them played at one poker table using the cash game. In Q1 2011, 84% took part in a tournament and 68% took part in cash‐game poker. This increase in the number of active player accounts in tournaments, to the detriment of the cash‐game activity, confirms the trend of a very dynamic tournament activity as opposed to a cash game that is clearly slowing down. In total, 772,000 player accounts were active in poker during the first quarter of 2012. © French Authority for the Regulation of Online Gaming 12 2. Breakdown of the population of active player accounts a. Active player accounts trends per activity Between the first quarters of 2011 and 2012, the number of active player accounts in each activity changed as follows:  ‐3% in sports bets,  +9% in horse racing bets,  ‐3% in poker bets. However, there are differences to be noted in the two poker activities, since the tournament activity continues to attract new active player accounts, whereas those numbers are falling in the cash game. Table 8: Quarterly trends in the number of active player accounts
Sports bets Horse racing betting Poker Q4 2010 406,000 285,000 Q1 2011 348,000 291,000 Q2 2011 302,000 296,000 Q3 2011 302,000 297,000 Q4 2011 335,000 300,000 Q1 2012 338,000 316,000 727,000 797,000 778,000 737,000 764,000 772,000 From an overall point of view, operators have stated that 1.3 million player accounts were active on the web sites in the 1st quarter of 2012, as in the 1st quarter of 2011. © French Authority for the Regulation of Online Gaming 13 b. Breakdown of active player accounts per age group
Figure 15: Breakdown of player accounts per age group
Key: 18% of active player accounts are aged between 18 and 24.
In the first quarter of 2012, across all activities, 55% of player accounts were held by players aged under 35, as opposed to 61% in the first quarter of 2011. Sporting punters are still the youngest population, but they increasingly present a profile close to their opposite numbers amongst poker players. In the whole market of on‐line games regulated by ARJEL, the player population profile has sharply aged between Q1 2011 and Q1 2012. In Q1 2012, across all activities, there were almost 230,000 active player accounts in the 18‐24 age range, versus 340,000 in Q1 2011, i.e. a fall of 33% in that population (i.e. ‐113,000 accounts). A further 12,000 fewer accounts have been registered amongst the 25‐34 age group (‐3%). Conversely, there are 16,000 additional active player accounts amongst the 35‐54 age group (+4%), 23,000 additional accounts amongst the 55‐64 age group (+34%), and almost 10,000 additional accounts amongst the over‐65 age group (+38%). © French Authority for the Regulation of Online Gaming 14 Table 9: Breakdown trends for active player accounts per age group between Q1 2011 and Q1 2012 18‐24 years 25‐34 years 35‐54 years 55‐64 years 65 years and over Sports bets Q1 2011 Q1 2012 39% 23% 30% 39% 33% 33% 4% 4% 1% 1% Horse racing betting Q1 2011 Q1 2012 8% 5% 17% 18% 49% 49% 18% 19% 9% 9% Poker Q1 2011 Q1 2012 24% 21% 44% 44% 29% 31% 3% 3% 1% 1% In sports bets, the first quarter of 2012 was marked by an increase in the average age of players. The 18‐24 age group fell by 44% between Q1 2011 and Q1 2012, a loss of almost 60,000 active player accounts in one year. That loss was partially balanced by the 25‐34 age group, which has an increasing population (+26,000 active player accounts). In addition, a further 15,000 active player accounts have been recorded amongst the 35‐54 age group, and a further 3,000 amongst the over‐55 age group. The youngest players have also partially lost interest in horse‐racing betting between Q1 2011 and Q1 2012. There have never been as many on‐line race‐goers (+9% in the number of active player accounts from Q1 2011 to Q1 2012), the 18‐
24 age group has lost almost 6,000 active player accounts, a fall of 26% in its population. On the other hand, all other age groups have seen a rise in player accounts. In poker, with the exception of the 55‐64 age group and the over‐65 age group, all age groups lost active player accounts between Q1 2011 and Q2 2012. The age group that is most affected – as for the other two activities – is the one that contains the accounts of the youngest players, given that the 18‐24 age group has lost 20% of its player accounts. © French Authority for the Regulation of Online Gaming 15 c. Breakdown per gender Figure 16: Number of active player accounts broken down by gender
Overall, in the 1st quarter of 2012, 13% of active player accounts were held by women. This figure is rising, since female players accounted for just 12% in Q1 2011, but in number terms, 1,800 fewer accounts held by female players have been recorded. Key: 8% of active sports betting player accounts are held by women.
Table 10: Breakdown trends of active player accounts per gender between Q4 2010 and Q4 2011
Men Women Sports bets Q1 2011 Q1 2012 92% 92% 8% 8% Horse racing betting Q1 2011 Q1 2012 80% 81% 20% 19% Poker Q1 2011 Q1 2012 90% 89% 10% 11% In one year, there are few trends to be observed with regard to the men / women spread in the population of active player accounts. In spite of the variations in the number of active player accounts, the spread by gender remains almost stable. © French Authority for the Regulation of Online Gaming 16 d. Breakdown per geographic origin The geographic breakdown figures should be handled with caution. This is because the counting of active player accounts – instead of individual players – related to the French adult population broken down per département defines a density indicator of player accounts from among the population of potential players. These densities have been calculated from French population data estimated as at 1 January 2009 by the French National Institute of Statistics and Economic Studies (INSEE, 48.4 million adults in France). i. Sports bets Figure 17: Geographic breakdown of the population of sports betting player accounts Overseas
Plus de 0,8%
De 0,4% à 0,5%
De 0,7% à 0,8%
De 0,3% à 0,4%
De 0,6% à 0,7%
Moins de 0,3%
De 0,5% à 0,6%
Key: The number of active player accounts in the Bouches‐du‐Rhône département represent more than 0.8% of its adult population. In total, 338,000 player accounts were active in sports bets in the first quarter of 2012, i.e. a fall of 3% compared with the first quarter of 2011. In Q1 2012, the départements with the largest number of active player accounts are the Bouches‐du‐Rhône, Nord and Paris, with over 13,000 active player accounts each. This “Top 3” has remained generally stable since the market opened, even if the order differs from one quarter to the next. © French Authority for the Regulation of Online Gaming 17 The Ile de France region continues to win new active player accounts. In Q1 2012, it registered almost 74,000 active player accounts in sports bets, i.e. 22% of all accounts. Furthermore, most sports punters come from départements that are home to large sports clubs (football, rugby, etc.). Table 11: Départements that have lost the most active player accounts in sports
betting between Q1 2011 and Q1 2012 69 ‐ Rhône 33 ‐ Gironde 14 – Calvados 07 – Ardèche 75 ‐ Paris Number of player accounts lost ‐1,028 ‐559 ‐554 ‐471 ‐446 Q1 2011 trends versus Q1 2012 ‐8% ‐6% ‐14% ‐22% ‐3% The départements that have proportionately lost the most player accounts are Cantal (‐24%), Ardèche (‐22%), and Ariège(‐16%). However, 43 départements out of 101 added player accounts between Q1 2011 and Q1 2012. It should be noted that the largest increases in the number of player accounts during the year were all in South‐Eastern France (Bouches‐du‐Rhône, Hérault, and the Corsican départements). © French Authority for the Regulation of Online Gaming 18 ii. Horse racing betting Figure 18: Geographic breakdown of the population of horse racing betting player accounts Overseas
Plus de 0,8%
De 0,4% à 0,5%
De 0,7% à 0,8%
De 0,3% à 0,4%
De 0,6% à 0,7%
Moins de 0,3%
De 0,5% à 0,6%
In total, 316,000 player accounts were active in horse‐racing betting in the first quarter of 2012, a rise of 9% compared with the first quarter of 2011. Like in the previous quarter, the départements with the largest number of active player accounts are the Nord, Pas‐de‐
Calais and Bouches‐du‐Rhône, with over 10,000 player accounts each. In Q1 2012, on‐line horse‐racing betting increased across France. No French département has a density of horse‐racing betting active player accounts that is less than 0.3% of its adult population. 15 départements have a density in excess of 0.8% of their adult population (as opposed to 11 in Q1 2011). Table 12: Départements that have gained the most active horse racing betting player
accounts between Q1 2011 and Q1 2012 59 ‐ Nord 62 – Pas‐de‐Calais 77 – Seine‐et‐Marne 13 ‐ Bouches‐du‐Rhône 91 – Essonne Gain in number of player accounts +1,279 +854 +744 +740 +515 © French Authority for the Regulation of Online Gaming Q1 2011 trends versus Q1 2012 +10% +9% +11% +8% +9% 19 The départements that have, proportionately, gained most player accounts are Haute Corse (+25%), Lozère (+22%), and Guyane (+20%). iii. Poker Figure 19: Geographic breakdown of the population of poker player accounts
Overseas
Plus de 1,8%
De 1,0% à 1,2%
De 1,6% à 1,8%
De 0,8% à 1,0%
De 1,4% à 1,6%
Moins de 0,8%
De 1,2% à 1,4%
In total, 772,000 player accounts were active in poker in the first quarter of 2012, i.e. a fall of 3% with respect to the first quarter of 2011. As for the other two activities, the départements with the greatest number of active player accounts are Nord, Paris, and Bouches‐du‐Rhône, with almost 30,000 active player accounts each. However, those three départements are also amongst those that have lost the most active player accounts between Q1 2011 and Q1 2012. © French Authority for the Regulation of Online Gaming 20 Table 13: Départements that have lost the most active player accounts in poker
between Q1 2011 and Q1 2012 75 ‐ Paris 13 ‐ Bouches‐du‐Rhône 23 ‐ Creuse 59 ‐ Nord 92 – Hauts‐de‐Seine Number of player accounts lost ‐3,748 ‐1,928 ‐1,758 ‐1,733 ‐1,378 Q1 2011 trends versus Q1 2012 ‐11% ‐6% ‐57% ‐5% ‐6% The départements that, proportionately, have lost the most player accounts are Creuse (‐57%), Guadeloupe (‐36%), and Martinique (‐25%). In spite of the overall reduction in the number of active player accounts in poker, 45 départements out of 101 have seen their population of player accounts increase, with significant rises in some cases (+2,459 player accounts in Finistère, +1,793 in Côte d’Or, and +1,048 in Drôme). © French Authority for the Regulation of Online Gaming 21 e. Breakdown of the player accounts population into bets accumulated i. Sports bets Figure 9: Breakdown trends for the population of sports betting player accounts according to their quarterly betting between Q1 2011 and Q1 2012 st
Key: 37% of active sports betting player accounts staked between €0 and €30 in the 1 quarter of 2012 ‐ versus 40% in Q1 2011. By breaking down the population of active player accounts by bet amounts placed during the quarter, it can be observed that for sports bets, 61% of player accounts bet less than €100 per quarter, whereas the figure was 67% in the first quarter of 2011. Conversely, the share of player accounts betting amounts of between €100 and €3,000 is on the rise, since they account for 36% of active player accounts in Q1 2012, as opposed to 31% in Q1 2011. The population of player accounts betting over €3,000 per quarter is stable at 3% of the total population of sports bets player accounts. In Q1 2012, it was noted that 190 active player accounts bet more than €50k during the quarter (the figure was 181 in Q4 2011). © French Authority for the Regulation of Online Gaming 22 ii. Horse racing betting Figure 10: Breakdown trends for the population of horse betting player accounts according to their quarterly bets between Q1 2011 and Q1 2012 Analysis of trends in the population of horse‐racing betting player accounts between Q1 2011 and Q1 2012 appears – at least initially – to show considerable stability in the activity. With few exceptions, trends are absolutely identical at the start of 2011 and the start of 2012. However, although the breakdown of the population is stable overall, the population itself shows noteworthy trends. In a single year, 25,000 additional player accounts were active during the quarter, and each “betting group” saw its population rise. It should be noted that the number of player accounts that bet over €50,000 during the 1st quarter of 2012 stood at 239 accounts, as opposed to 201 in Q1 2011. In total, the average bet per active player accounts stood at €144 in 2012, as was the case in 2011. © French Authority for the Regulation of Online Gaming 23 iii. Poker Figure 11: Breakdown trends for the population of cash game players according to their quarterly bets between Q1 2011 and Q1 2012 The relative share of player accounts that bet less than €100 during the quarter is on the rise (+2 points), the general population of active player accounts in cash game retained a certain stability in its make‐up during the quarter. Further to the overall reduction of 9% in the population of active player accounts in cash game, all “betting groups” have lost player accounts. The groups that are most affected are those containing accounts that bet between €10,000 and €100,000 during the quarter:  ‐27% of active player accounts bet between €10,000 and €30,000 during the quarter between Q1 2011 and Q1 2012,  ‐29% of active player accounts placed bets of between €30,000 and €100,000. The player account population having bet over €100,000 during the quarter also fell to 2,385 in the first quarter of 2012, as against 2,472 in the first quarter of 2011, a fall of 4%. © French Authority for the Regulation of Online Gaming 24 Figure 12: Breakdown trends for the population of poker tournament player accounts according to their quarterly entry fees between Q1 2011 and Q1 2012 In tournaments – as in the cash game – and in spite of variations in the number of player accounts, the population spread by “entry‐fee group” has remained almost unchanged. However, trends have been observed in the number of active player accounts in each group between the 1st quarter of 2011 and the 1st quarter of 2012:  All groups of player accounts having placed bets of between €0 and €3,000 during the quarter have seen their population increase, from +2% (groups from €0 to €30 and from €100 to €300) to +6% (group from €300 to €1,000).  To the contrary, all groups of player accounts having bet over €3,000 have experienced a fall in population: ‐4% for the group from €3,000 to €10,000, ‐22% for €10,000 to €50,000, and ‐49% for the population of player accounts having committed over €50,000 in entry fees during the quarter. © French Authority for the Regulation of Online Gaming 25 f. Player accounts generating the most bets Figure 13: Centile of player accounts betting the most Figure 14: Decile of player accounts betting the most Key: 1% of sports betting player accounts staked 38% of the betting total for the quarter Key: 10% of sports betting player accounts staked 80% of the betting total for the quarter On average and all activities taken together: 1% of players generate 51% of all bets, and 10% of players generate 86% of all bets. Cash game is the activity to which the most active players commit the largest share of bets: 1% of players generate 59% of bets, and 10% of players generate 90% of bets. Table 7: Trend in the relative weight of the upper centile and decile between Q1 2011 and Q1 2012
Upper‐centile bets Upper‐decile bets Sports bets Q1 2011 Q1 2012 Horse racing betting Q1 2011 Q1 2012 Cash game Q1 2011 Q1 2012 Tournament Q1 2011 Q1 2012 40% 38% 28% 30% 58% 59% 34% 37% 81% 80% 70% 71% 86% 90% 79% 78% In light of trends of relative weights of upper centiles and deciles in player accounts between Q1 2011 and Q1 2012, it is observed that player accounts placing the largest sports bets weigh slightly less than a year ago, whereas the other three activities have been strengthened. © French Authority for the Regulation of Online Gaming 26 3. Topping up habits a. Amounts and payment frequencies On average, €220 were deposited in each active player account during the 1st quarter of 2012, i.e. €73 per month per player account. Provisioning thus reached a level close to that of Q1 2011, with an average of €223 per active player account. What's more, each player account was topped up on average 6.9 times through the last quarter of 2011 – or 2.3 times per month and per player account – versus 6.1 times on average as at Q1 2011. The average top‐up amount each time therefore amounts to €32 as at the 1st quarter of 2012, versus €37 as at Q1 2011. Figure 20: Amount of average quarterly payments per active Figure 21: Average quarterly frequency of payments per active player account player account Key: on average, €147 was paid into an 18‐24 year‐old player account in Q1 2012, versus €141 in Q1 2011. Key: on average, an 18‐24 year‐old player account was topped up 5.4 times in Q1 2012, versus 4.7 times in Q1 2011. In total, online players paid €297m into their accounts through the 1st quarter of 2012, versus €277m in the 1st quarter of 2011, i.e. a 7% increase in one year. Table 14: Comparison of payment and withdrawal frequencies through Q1 2012 compared with Q1 2011 Number of player accounts topped up... Number of player accounts from which withdrawals were made... 1 to 12 times Q1 2011 Q1 2012 13 to 89 times Q1 2011 Q1 2012 More than 90 times Q1 2011 Q1 2012 86% 84% 13% 16% 0.5% 0.6% 97% 97% 3% 3% 0.02% 0.04% We can observe that between Q1 2011 and Q1 2012, the proportion of player accounts topped up more than once a week is growing (+3 points), while the frequency of withdrawals is stable. © French Authority for the Regulation of Online Gaming 27 Overall, there are fewer player accounts that were provisioned in Q1 2012 than in Q1 2011, (‐48,000 accounts), and more accounts from which withdrawals were made (+10,000 accounts). b. Payment methods used Figure 22: Payment methods used (in % of payments)
During this quarter, the spread of payment methods used by players has been marked by an increase in the share of pre‐paid cards. In the 1st quarter of 2012, 10% of deposits were made using pre‐paid cards, as opposed to 7% in Q1 2011, an increase of almost €9m. Conversely, transfers have fallen from 4% in Q1 2011 to just 1% in Q1 2012. For all that, bank cards are still the most commonly used payment method for online players. Key: for 87% of sums paid in to player accounts, online players used bank cards. © French Authority for the Regulation of Online Gaming 28 4. Gambling habits a. Player accounts connection times Figure 23: Sports punters' connection Figure 25: Poker player connection times Figure 24: Horse racing punters' connection times times Key: on average, more than 40,000 accounts connected every day of the week on sports betting websites between 8 a.m. and 6 p.m. Concerning online player gambling practices and bets, there has been little change between the 1stquarters of 2011 and 2012. Overall, sports punters are continuing to connect to websites mainly in the daytime and evening, when the main sporting competitions are being broadcast. Live betting accounts for 49% of stakes and 24% of bets recorded at the end of the 1st quarter of 2012. In the first quarter, the matches of the Champions’ League and the Europa League were played on weekdays (Tuesday, Wednesday or Thursday), so it was not illogical to observe a sustained presence of player accounts on sports bet web sites during the week. Horse racing punters log on in the daytime and evening, just before the races begin, so as to get the latest updates on the going, analysis of the horses running and any non‐runners. They connect more often in the evening on weekdays since the national evening or semi‐evening meetings mainly take place in the week. In poker games, web sites see a fall in traffic during the day, both during the week and at weekends. That observation can be compared with the bunching of the cash‐game activity, which attracted fewer active player accounts during this quarter (‐9% of active player accounts). © French Authority for the Regulation of Online Gaming 29 b. Connection devices used Since the online gambling market opened up to competition, increasing numbers of operators are choosing to develop a mobile range – accessible from a mobile phone, smartphone or tablet. Further to requests made by on‐line gaming and betting operators, the ARJEL board approved a number of software packages over the last few months, thus enabling those operators to offer their mobile ranges. Not surprisingly, these new connection devices are swiftly gaining ground in the three regulated sectors. Figure 26: Connection devices used by active player accounts ‐ broken down per activity
Key: 14% of active player accounts on sports betting websites logged on via a mobile phone or smartphone. During this quarter, sports bet players confirmed their interest in mobile ranges: 14% of them used mobile phones and 1% used digital tablets. By way of comparison, in the 1st quarter of 2011, the figures were half as great. The proportion of race‐goers using mobile supports to connect to the web sites of horse‐racing betting operators is also on the rise with respect to Q1 2011: mobile use accounts for 12% of connexions in Q1 2012, as opposed to 8% a year ago. This increase is explained by the increase in the number of mobile application offered by operators to their players over the last few months. Poker remains the activity in which digital tablets are proportionately most used, together with a rise in the use of mobile phones and smart phones, due in particular to the appearance of new applications specially designed for the small screens of telephones. In Q1 2011, fewer than 4% of player accounts connected using a mobile support. The number has increased almost fourfold (15%). Table 15: Mobile players' population trends between Q1 2011 and Q1 2012
Sports bets Horse racing betting Poker Players connecting via their smartphone Q1 2011 Q1 2012 38,384 49,853 24,719 34,063 29,860 107,306 © French Authority for the Regulation of Online Gaming Players connecting via their tablet Q1 2011 Q1 2012 0 1,712 0 3,773 3,879 24,746 30 5. Marketing expenses of accredited operators a. Monthly trends of accredited operators' media budgets Figure 27: Monthly trends of the gross market budgets excl. VAT of online gambling operators Source: YACAST barometer
The budgets presented above include the following media: Television, Radio, Press, Cinema, Posters and Internet. After an initial year of an open market, in which on‐line gaming and betting operators invested significant amounts in marketing, budgets appear to have levelled off at between 10 and 20 million euros a month since August 2011. Between the 1st quarter of 2011 and the 1st quarter of 2012, the media budgets of on‐line gaming operators fell by 44%. Table 16: Quarterly trends of online gambling operators' marketing budgets
Media marketing budgets Q3 2010 €90m Q4 2010 €93m Q1 2011 €86m Q2 2011 €73m Q3 2011 €32m Q4 2011 €48m Q1 2012 €48m Source: YACAST barometer
Nonetheless, some operators continue to account for the lion’s share of amounts invested: at the beginning of 2012, 4 operators accounted for 80% of all advertising budgets in the on‐line gaming sector. © French Authority for the Regulation of Online Gaming 31 b. Breakdown of operators' total marketing expenses Figure 28: Breakdown of operators' (net) marketing expenses over
st
the 1 quarter of 2012 In the 1st quarter of 2012, carrying on from the two previous quarters, on‐line gaming and betting operators increased the share allocated to bonuses and to sponsorship offers in their marketing budgets. This budget line rose by 39% between Q1 2011 and Q1 2012. Conversely, the amount given over to buying space in the media fell sharply from 2011 to 2012, with a budget reduction of 38%. Key: In the 1st quarter of 2012, 1% of operators’ net expenses went to buy space in the printed press.
From an overall point of view, over and above the reduction in operators’ marketing budgets, there is also the matter of changes in practices: rather than dealing with the general public, investments seem to be refocused on more targeted actions that are increasingly personalised in line with player profiles. Table 17: Breakdown trends for operators' net marketing expenses between Q1 2011 and Q1 2012 Written press TV‐Radio‐Cinema‐Posters Internet Other media expenses Bonuses and friend referrals Other non‐media expenses Sponsorship Q1 2011 3% 23% 21% 3% 37% 4% 9% © French Authority for the Regulation of Online Gaming Q1 2012 1% 12% 18% 1% 55% 4% 9% Trends ‐2 pts ‐11 pts ‐3 pts ‐2 pts +22 pts ‐ ‐ 32 If you have any further enquiries, please email presse@arjel.fr © French Authority for the Regulation of Online Gaming