France Delays Online Casino Legalization Amid Industry Concerns and Calls for Further Discussion
Published: October 30, 2024 | Author: Ron Clarke
In recent developments, France has postponed a proposed amendment to its 2025 budget that would have legalized online casinos, marking a temporary retreat from its initial plan to align with broader European Union norms. The decision comes after intense discussions with stakeholders, including regional officials and representatives from the land-based casino sector, who expressed concerns about the economic impact of online gambling.
On October 27, Budget Minister Laurent Saint-Martin announced the withdrawal of the amendment, emphasizing the need for more comprehensive dialogue. The government’s earlier proposal included a regulatory framework that sought to introduce a 27.8% Gross Gaming Revenue (GGR) tax, which, coupled with additional federal business taxes, would create an effective tax rate of over 55% on online casino revenue. Despite these plans, the proposal faced immediate resistance from various stakeholders, who argued it would jeopardize local economies and lead to significant job losses.
A major source of contention was voiced by the Casinos de France association, representing over 200 traditional casino venues, which, alongside approximately 130 mayors, raised concerns about the potential loss of jobs and a decline in revenue for physical casinos. The group argued that the legalization of online casinos could lead to closures of up to 30% of their establishments, potentially eliminating 15,000 jobs across the industry. In an editorial published in Le Figaro, the mayors described the legislation as a “Pandora’s box” that could undermine the government’s long-term economic goals.
Furthermore, the disparity in social obligations and tax burdens between online and land-based casinos emerged as a critical point in the debate. Land-based casinos currently bear a heavier tax load, and exempting online casinos from these responsibilities, critics argue, would create an unbalanced competitive landscape. Grégory Rabuel, President of Casinos de France, welcomed the government’s decision to withdraw the amendment, emphasizing the importance of a regulatory framework that considers the interests of all stakeholders.
This pause in France’s online casino ambitions also comes amid rising concerns about the country’s illegal online gambling market. Recent studies by the National Gambling Authority (ANJ) estimated that unauthorized online casinos generated between €748 million and €1.5 billion in GGR in 2023, comprising about 5-11% of France’s total gambling market. Proponents of legalizing online casinos argue that a regulated framework could better control this sector, limit potential harms to consumers, and capture additional tax revenue.
Despite the setback, Minister Saint-Martin confirmed that the government may revisit the issue, though with a focus on increased consultation with both the land-based casino sector and other stakeholders. With France and Cyprus remaining the only EU member states prohibiting online casinos, there is ongoing pressure to bring the country’s laws in line with its European counterparts. Future deliberations will likely explore a balanced approach that considers economic impacts, responsible gambling measures, and protections for regional economies reliant on traditional casinos.
As always, we, at Casin.com will continue to monitor developments in the local global gambling market to bring our Italian readers the most relevant and engaging news and updates.
