France Reassesses Online Casino Legalization Amid Opposition

Proposals to legalize online casinos in France have been delayed following pushback from key stakeholders, including the country's physical casino industry and organizations focused on gambling addiction prevention. Despite discussions about potential legalization as part of the 2025 budget, the government has opted for further consultation before advancing any changes.

France’s Unique Stance on Online Casinos

France, alongside Cyprus, remains one of only two European Union nations to prohibit online casino platforms. However, this restrictive policy has not deterred French citizens from accessing these services. According to the Autorité Nationale des Jeux (ANJ), an estimated three to four million French residents engaged with unregulated online casino platforms in 2023. These activities generated up to €1.5 billion annually in untaxed revenues, fueling calls for the introduction of a regulated framework.

The government’s initial proposal highlighted potential benefits of legalization, including approximately €1 billion in annual tax revenues and improved consumer protections. A legal framework could address issues such as gambling addiction, fraud, and money laundering while offering players greater safety. The government also suggested a steep tax rate of 55.6% on gross gaming revenues to ensure significant contributions to public funds and social programs.

Despite these advantages, opposition from traditional casino operators and regional leaders has stalled the initiative. Critics argue that allowing online casino platforms would siphon revenue from physical venues, which generated €2.7 billion in pre-tax profits in 2023, and jeopardize jobs.

Resistance from Land-Based Casinos and Local Leaders

The pushback from France’s 200 land-based casinos has been particularly strong. Grégory Rabuel, president of Casinos de France, has warned that online casino legalization could reduce gross revenues at physical casinos by 20–30%, leading to the closure of around a third of establishments. This would put an estimated 15,000 jobs at risk, significantly impacting local economies reliant on these businesses.

Regional leaders have echoed these concerns. A coalition of 130 French mayors published an editorial in Le Figaro, cautioning that legalization could create unfair competition for physical casinos, which are already subject to stringent regulations and social obligations. They urged the government to craft a model that mirrors the regulatory framework for brick-and-mortar establishments.

Public health advocates have also voiced apprehension. Organizations such as Fédération Addiction have highlighted the risks of expanded gambling access, citing studies showing that 1.4 million French citizens were already at risk of problem gambling as of 2019. Expanding online gambling opportunities, they argue, could exacerbate these issues.

Historical Context and Recent Developments

The debate over online casinos is not new. In late 2024, the French government withdrew an amendment to the 2025 budget that sought to fast-track legalization through a decree. Budget Minister Laurent Saint-Martin emphasized the need for extensive consultations, stating, “We must ensure that it doesn’t harm certain stakeholders, especially land-based casinos.” This cautious approach led to the creation of three working groups focusing on public health, economic implications, and security concerns.

France’s gambling laws have evolved significantly over the years. Physical casinos were historically restricted to tourist towns and spa resorts, with Enghien-les-Bains serving as a notable example near Paris. Over time, regulations were loosened to allow casinos in larger urban areas. However, even with these changes, physical casinos remain tightly regulated, contributing significantly to the economy and generating substantial tax revenues.

In contrast, legal online gambling in France is limited to specific sectors such as sports betting, horse racing through the PMU, and poker. The PMU, which has operated online since 2010, has expanded to include other sports betting options, making a net profit of €800 million in 2023. Meanwhile, the state-run Loto, which launched its online platform 15 years ago, contributed €4.2 billion in taxes and social security payments from a pre-tax profit of €6.5 billion in 2023.

The debate over online casino legalization is far from over. Advocates, such as the Association Française du Jeu en Ligne (AFJEL), argue that regulation would provide much-needed oversight, reduce illegal gambling, and enhance consumer protections. However, balancing these benefits with the concerns of physical casinos and public health remains a significant challenge for the government.

While the current proposal has been paused, officials have not ruled out revisiting the issue. Minister Saint-Martin’s commitment to a consultative approach suggests that any future legislation will aim to address the interests of all stakeholders while mitigating potential harms.

Source:

France Weighs Online Casino Legalization to Address Illegal Market, news.worldcasinodirectory.com, January 9, 2024.