The French government has retracted its proposed amendments to the 2025 budget, which sought to legalize and regulate online casinos. The withdrawal, confirmed by Budget Minister Laurent Saint-Martin on Sunday, followed strong opposition from regional stakeholders who argued that the move could negatively impact the country’s physical casino industry.
Announcing the decision on Radio J, Minister Saint-Martin emphasized the need for further discussions. "There was talk that the government would submit an amendment. This is no longer the case. I believe we need to work among ourselves first,” he stated. Saint-Martin added, "I am very vigilant about this issue. We must not make mistakes. We must ensure that it doesn’t harm certain stakeholders, especially land-based casinos.”
The initial proposal, introduced by Prime Minister Michel Barnier’s administration, aimed to raise revenue by integrating online casino regulation within the 2025 budget plan. Under the plan, a 27.8% gross gaming revenue (GGR) tax would apply to online casinos, alongside federal business rates, creating an effective tax rate of 55%. The government projected that legalizing online casinos could generate an estimated €500 million in additional tax revenue.
However, the proposal met immediate resistance from French local leaders and the casino industry’s representative body, Casinos de France. In a pointed response, around 130 French mayors issued an editorial in Le Figaro, warning that the amendment could backfire economically. They argued that introducing online casinos would be “opening a Pandora’s box” and would counter the budget’s goal of raising state funds.
These local leaders fear that online casinos would pose unfair competition to land-based casino establishments, which already adhere to significant social and tax obligations. They urged the government to develop a model for online gambling regulation that mirrors existing requirements for physical casinos, a stance supported by Casinos de France.
French casino operators have long been wary of the potential impact of online casino legalization. Industry representatives, including Grégory Rabuel, chairman of Casinos de France, have argued that such a move would significantly affect their operations. Rabuel, who also leads Barrière, a major French casino and hotel group, highlighted the anticipated damage in a recent Les Echos interview. “According to our calculations, opening up online casinos will lead to a fall in gross gaming revenue for land-based casinos of between 20% and 30%, and the closure of 30% of establishments,” he stated. “There will be catastrophic consequences, particularly in social terms,” he added, predicting that as many as 15,000 jobs would be at risk.
The potential job losses and the threat of revenue declines have prompted the industry to argue that online casino legislation could effectively “sign the death warrant for land-based casinos.” Casino advocates assert that the exclusivity of casino gaming should remain with physical establishments, a point reinforced by a coalition of local leaders.
In addition to economic arguments, public health concerns have added to the opposition against the amendment. Féderation Addiction, a network of addiction specialists, warned that expanding access to online casinos could worsen gambling-related issues. Noting that 1.4 million French citizens were already at risk of problematic gaming in 2019, the organization called the amendment “irresponsible and contrary to public health priorities.” The group highlighted the risk of a rise in pathological gambling cases if online casinos were allowed to operate legally in France.
Despite these arguments, the government believes that an unregulated online casino market still poses risks, as illegal gambling activity reportedly generates between €748 million and €1.5 billion annually. The national gaming authority, l'Autorité nationale des jeux (ANJ), noted that legalizing and regulating online gambling could help curb this underground market. Supporters argue that legalization would enable authorities to implement stricter public health regulations and establish control over the expanding online gambling sector.
While the 2025 amendment has been shelved, France’s government remains open to revisiting online casino regulation. Minister Saint-Martin acknowledged France’s unique stance as one of only two EU countries, along with Cyprus, that still prohibits online casinos. He noted that any future action would likely include consultations with industry representatives, regional leaders, and public health experts to ensure comprehensive oversight and minimize adverse impacts on France’s established gambling sector.
Casinos de France expressed relief over the government’s current position. Grégory Rabuel emphasized that the industry remains committed to ongoing dialogue. “We are relieved that the government has heard our concerns,” Rabuel stated. “We remain vigilant to ensure that the commitment made by the Budget Minister is upheld: any future legislative or regulatory changes should take place within a framework of consultation and constructive dialogue.”
As France navigates this complex regulatory landscape, future decisions on online gambling will likely balance state revenue goals with the interests of physical casinos and public health considerations. SBC will continue to provide updates on developments in France’s online casino legislation.
Source:
''Plans to legalise online casinos in France met with opposition'', RFI. October 23, 2024.
''France postpones Budget amendment on iCasino laws'', SBC News. October 28, 2024.
''France looks to authorise online casinos'', The Connexion. October 25, 2024.