France Halts Online Casino Legalization Amid Widespread Opposition
France’s government has decided to retract an amendment in its 2025 budget plan aimed at legalizing online casinos, following backlash from various stakeholders. The proposal, which had been championed by Prime Minister Michel Barnier’s administration, was intended to introduce a regulated online casino sector, subject to substantial taxation. However, after facing strong opposition from both land-based casino operators and public officials, Budget Minister Laurent Saint-Martin announced on Sunday, October 27, that the amendment would be postponed to allow for further discussions with industry players.
Under current French gambling laws, which were set in 2010, only sports betting, horse racing, and poker are allowed online. Casino-style games, on the other hand, are still restricted due to concerns over gambling addiction and its impact on public health. France, alongside Cyprus, remains one of the last EU countries where online casinos are not permitted, a stance that has fueled an illegal online gambling market estimated to generate up to €1.5 billion annually.
Backlash from Casino Industry and Public Officials
The proposed amendment, which included a gross gaming revenue (GGR) tax rate of 27.8%, bringing the total effective tax rate on online casinos to 55.6%, was part of the government’s broader strategy to boost revenue by an estimated €500 million. Yet, the immediate pushback from land-based casinos and local mayors underscored concerns about the negative consequences for traditional casinos.
Gregory Rabuel, president of the Casinos de France association, argued that online casino legalization could lead to a “catastrophic” impact on the industry. He estimated that up to 30% of land-based casinos could face closure, potentially leading to 15,000 job losses across the sector. In an article published by 130 French mayors in Le Figaro, opponents of the amendment claimed it would “open Pandora’s box,” exacerbating the government’s budget challenges rather than addressing them. They also raised concerns about the perceived financial advantage that online casinos could have if they were not subjected to the same social and tax obligations as physical casinos.
In an interview with Radio J, Budget Minister Saint-Martin stressed the importance of a balanced approach, highlighting the need to address stakeholders’ concerns and avoid unintended harm to the traditional casino industry. “We must ensure that this does not harm certain stakeholders, especially land-based casinos,” he emphasized, adding that the government remains open to discussing future regulatory frameworks with casino representatives and local officials.
Future Discussions and Regulatory Considerations
Despite the current delay, the French government has indicated that online casino legalization could be revisited once thorough consultations are conducted. The National Gambling Authority (ANJ) recently released a report estimating that illegal online casinos generated between €748 million and €1.5 billion in GGR in 2023, capturing 5% to 11% of France's gambling market. The government cited these figures as a potential motivator to eventually regulate online casinos, which could help capture tax revenue from an already active market.
Saint-Martin’s announcement to withdraw the proposal comes amid a strategic shift towards a more inclusive approach that considers the interests of various stakeholders, including traditional casinos and regional governments. The government has been urged to explore the “Casinos de France model,” which proposes a regulated online casino framework mirroring the existing standards for land-based casinos. This model aims to ensure fair competition and prevent any regulatory disparity that might benefit online casinos over their brick-and-mortar counterparts.
Rabuel, representing Casinos de France, expressed cautious optimism regarding the government's decision to hold further consultations. He stated, “We remain vigilant to ensure that the commitment made by the budget minister is honored: any future legislative or regulatory changes must take place within the framework of consultation and constructive dialogue.”
While the amendment has been shelved for now, France’s stance on online casinos may continue to evolve, particularly as the government considers ways to balance new revenue opportunities with economic and social responsibilities. If revisited, future discussions are expected to focus on a structured approach to online casino regulation that supports public health, protects traditional casino jobs, and ensures that online gambling platforms contribute fairly to tax revenues.
Source: France Pauses Online Casino Legislation Citing Industry Concerns, lcb.org, October 29, 2024.