France is moving towards legalizing online casinos, potentially joining other European Union countries in allowing digital gambling platforms. Under a new amendment in the draft 2025 budget, the government aims to regulate and tax online casinos, which could help counter illegal gambling operations while addressing the nation's economic concerns. This proposal places France on a path to diverge from its current restrictive stance, with Cyprus as the only other EU country where online casinos remain banned.
Current Online Gambling Laws in France
Presently, France permits online sports betting, horse racing, and poker games, while casino-style gambling, such as blackjack, roulette, and slot machines, remains illegal online. Authorities argue that these games are particularly addictive, hence the restrictions.
By contrast, online poker is allowed as it involves more skill-based play, distinguishing it from games of pure chance. With gambling addiction as a primary concern, French lawmakers have maintained strict controls on online casino gaming, but the government’s recent proposal suggests a shift in approach.
If this amendment passes, online casino games would be taxed at a significant rate of 55.6% on gross revenue. This anticipated taxation is part of a broader effort to increase revenue in light of France’s rising national deficit, which exceeded 5.5% of GDP in 2023—well above the EU’s 3% target.
The French government has been vocal about the risks posed by the unregulated gambling market, which continues to attract a sizable portion of French gamblers. According to recent reports, illegal online casino activity in France generates up to €1.5 billion ($1.63 billion) annually, accounting for around 10% of the entire gambling sector’s revenue. Finance Minister Antoine Armand noted that the proposed law would allow the government to rein in these illegal operations, stating on TF1, “Those that exist, which are sometime operating illegally must either be closed or be regulated or have to contribute” through taxes.
If legalized, the online casino sector would contribute significantly to the country’s revenue, helping to ease the financial burden from illegal gambling that has largely evaded taxes. Additionally, officials believe that regulating the market could limit the health risks associated with gambling addiction, with public health considerations factored into the legalization framework.
While the move could boost government revenue, traditional brick-and-mortar casinos are expressing concerns about potential revenue loss. France’s Casino Union President, Grégory Rabuel, estimates that opening up online casino gaming could reduce the gross revenue of physical casinos by 20-30%. He also cautioned that up to 30% of casino establishments could close, risking 15,000 jobs in the industry. “Opening up online casinos to competition will lead to a drop in the gross gaming revenue of land-based casinos,” Rabuel told Les Echos. In a public statement, he emphasized that if online casinos are introduced, they should partner exclusively with physical casinos to protect local economies and jobs.
The National Gambling Authority (ANJ) also voiced concerns regarding online casino gaming’s potential for heightened addiction risks. Elsa Trochet-Macé, a representative from the ANJ, told Euronews, “This is a complex question insofar as the online casino offer is particularly addictive.” She further highlighted the potential economic fallout, cautioning that a robust online casino market could undermine France’s 200+ physical casinos, an established part of the nation’s economy.
Budgetary Pressures and Economic Goals Behind the Amendment
As France faces mounting public debt, the government sees online casino taxation as a revenue source to aid economic recovery. France’s economy has shown growth primarily through exports rather than domestic consumption, resulting in reduced VAT receipts. By incorporating a new revenue stream from legalized online casinos, officials hope to stabilize finances and bring the deficit back in line with EU standards.
The legalization of online casinos is part of a broader push by the French government to address the national deficit, reduce illicit gambling, and support economic stability. As the amendment moves through legislative procedures, France will weigh the potential advantages of regulating a market that is already thriving underground against the impact it could have on its long-standing physical casino industry.
Source:
''France aims to allow online casinos next year'', france24.com, October 22, 2024.
''France Considers Legalizing, Taxing Online Casinos, Armand Says'', bnnbloomberg.ca, October 22, 2024,
''France looks to authorise online casinos'', connexionfrance.com, October 23, 2024.
''France looks to legalise online casino in 2025'', gamblinginsider.com, October 23, 2024.
''Legalising online casinos? France places a bet on solving budget woes'', euronews.com, October 23, 2024.
