France is one of two EU member states that does not offer legal online casino gambling. However, this may change in 2025, as the French government is considering online casino legalization as part of its 2025 budget plan.
The country wants to address the illegal gambling market and boost tax revenues. If legalized, online casinos would be taxed 55.6% of gaming turnover.
Naturally, there are opponents to the measure, including the casino industry that claims that online gambling will cost jobs.
Key Highlights
- Parliament is debating an amendment to legalize online casinos in France.
- If passed, casinos would be taxed at 55.6%.
- The land-based casino industry is against the move but also suggests an exclusivity period for casinos.
French Government Adding Online Casino Legalization to Budget Plan
A recent amendment filed by the French government has revealed that France is finally looking to join the rest of the EU in the regulated online casino market.
France and Cyprus are the only EU members where online casino gambling is illegal, but that could change next year.
Online casino legalization was added as part of the 2025 federal budget plan, a plan that will soon go into debate in Parliament. The government is looking to combat the illegal gambling market, one that is costing the country much-needed tax revenues.
According to the National Gambling Authority (ANJ), illegal online casino sites are raking in between $806 million and $1.62 billion annually, estimated to be about 10% of illegal casino income.
Several online casino operators support the amendment. Unibet, Betclic, and Winamax are among the legal gaming companies eager to expand to France once online casinos are legalized.
If the activity is legalized, participation is expected to explode, with estimated tax revenues of around $1 billion to the state. This would be done through a tax rate of 55.6% on casino turnover.
Legalizing the activity would help to combat illegal gambling throughout the country, which is a large contributor to problem gambling behaviors. Authorities believe that legalized gambling would help to combat public health problems caused by illegal gambling.
Several online casino operators support the amendment. Unibet, Betclic, and Winamax are among the legal gaming companies eager to expand to France once online casinos are legalized.
France is an important regulated gaming market where many online poker sites enjoy tremendous success. Online poker is legal in the country because the skill argument won out with lawmakers, who agreed that the skill element overrules any luck experienced in the games.
Companies like PokerStars have enjoyed tremendous growth and profits in France, something that online casinos can replicate.
French Casino Industry Opposes Measure Claiming Job Losses
As expected, there is opposition to the legalization effort. The strongest opponent is the land-based casino industry, with antiquated claims that online gambling will lead to casino closures and job losses across the country.
Gregory Rabuel, CEO of Barriere Groupe and President of Casinos de France, spoke out on the matter, claiming that traditional casinos could suffer a 20% to 30% drop in gross gaming revenues after online casinos are legalized.
Rabuel also made a dire prediction that up to 30% of land-based casinos could close, costing approximately 15,000 jobs. Despite these warnings, Casinos de France wants to participate in regulated gaming.
Casinos de France has proposed a three-year exclusivity period for French casinos to operate online before expanding the market to other providers.
An exclusivity period could prove an excellent compromise to get online casinos regulated. Providers like Winamax could partner with brick-and-mortar casinos in the short term, while other companies would have to wait three years before entering the market.
However, the claims of casino closures and job losses are likely to fall on deaf ears as the data in other countries does not support this. Just look at the United States, where online casino gambling in regulated markets has helped support brick-and-mortar establishments.
New Jersey saw a resurgence in its casino industry after adding regulated online casinos, which were a crucial component of the rally.
With France being one of just two EU holdouts for regulated online casino gambling, this measure will likely gain serious consideration. We’re hopeful that France will join the rest of the EU in the regulated market in 2025.
Sources
https://www.yogonet.com/international/news/2024/10/23/82895-france-moves-to-legalize-online-casinos-as-part-of-2025-budget-amid-economic-regulatory-concerns#:~:text=France%20is%20moving%20closer%20to,boosting%20government%20revenue%20through%20taxation.
https://www.gamblinginsider.com/news/27185/france-looks-to-legalise-online-casino-in-2025
