France Faces Complex Challenges in Online Casino Legalization
Efforts to bring online casino gaming under legal regulation in France have reached an impasse, as the government seeks to balance economic opportunities with the concerns of stakeholders. Proposals to allow such platforms, part of the draft 2025 budget, have been paused following significant opposition.
Balancing Benefits and Risks of Online Casinos
France’s strict stance on online casino gaming sets it apart within the European Union, where only Cyprus shares its outright prohibition. Despite this ban, the underground market flourishes, with reports suggesting that millions of French residents accessed illegal platforms in 2023. These platforms generate substantial revenue, estimated at up to €1.5 billion annually, while evading taxes and offering little consumer protection.
Proponents of legalization argue that regulating the market could redirect these funds into the legal economy, yielding up to €1 billion annually in tax revenues. Legal platforms could also enforce safeguards to address gambling addiction and fraud. However, resistance from physical casino operators and public health advocates has slowed the momentum of these initiatives.
Concerns from the Physical Casino Industry
France’s land-based casino sector, which generated €2.7 billion in pre-tax profits in 2023, has voiced strong opposition to the legalization of online casinos. The trade group Casinos de France predicts a 20–30% revenue decline for physical establishments if online platforms are introduced, potentially leading to the closure of nearly a third of the country’s 200 casinos. This could put 15,000 jobs at risk, posing significant challenges to local economies.
Local officials have joined the opposition, with over 130 mayors warning in a public statement that online casinos would unfairly compete with heavily regulated physical venues. They advocate for a model that would allow only existing casino operators to launch online platforms, ensuring the stability of their operations.
Public Health and Regulatory Hurdles
Public health advocates have also raised concerns about the potential consequences of expanding access to online gambling. Organizations such as Fédération Addiction warn that the availability of online casino games could lead to an increase in problem gambling. In 2019, 1.4 million people in France were already identified as being at risk, a number that could rise if regulations fail to address addiction risks.
France’s current gambling policies reflect caution in addressing these risks. Legal online gambling is limited to sports betting, horse racing, and poker, with casino-style games prohibited due to their higher potential for addiction. Proponents of regulation argue that a legal framework could mitigate these risks by implementing controls, but critics remain skeptical about the effectiveness of such measures.
Historical Context and Future Prospects
The debate over online casino legalization builds on a history of evolving gambling regulations in France. Initially restricted to tourist destinations and spa towns, physical casinos gradually expanded to larger cities following regulatory changes. Despite these shifts, the industry remains a cornerstone of local economies and a significant contributor to public revenues.
Digital gambling, by contrast, has developed cautiously. The PMU, a major player in horse race betting, began offering online services in 2010 and has since expanded to other forms of gambling. The state-run Loto introduced an online platform 15 years ago, contributing billions in tax revenues while maintaining strict controls. These examples highlight the potential for regulated online gambling to bolster the economy while ensuring oversight.
Moving forward, the French government plans to engage in further consultations with stakeholders. Working groups have been established to examine the issue from economic, public health, and security perspectives. Advocates like the Association Française du Jeu en Ligne (AFJEL) continue to push for regulation, emphasizing its potential to reduce illegal gambling and enhance consumer protections.
Source:France Reassesses Online Casino Legalization Amid Opposition, lcb.org, January 10, 2025.