France’s Online Casino Legalization Plans on Hold Amidst Opposition
France’s ambitious plan to legalize online casinos has hit a significant roadblock, following substantial pushback from various industry stakeholders and regional authorities. Initially proposed as part of the 2025 budget by Prime Minister Michel Barnier, the amendment aimed to introduce legislation for online casinos. However, this proposal has been shelved for further consultation, as announced by Budget Minister Laurent Saint-Martin. The decision underscores the government’s commitment to addressing the concerns raised by physical casinos and local representatives.
The Context of Online Casino Legislation
The proposed amendment was part of a broader initiative to modernize France’s gaming laws and enhance tax revenue. Currently, France and Cyprus stand as the only two EU countries where online casinos remain illegal. The government had hoped that legalizing online casinos would align France with the majority of European Union member states, which have embraced online gaming as a means to regulate the industry and generate tax income. However, the government has recognized the necessity of reevaluating the proposal to mitigate potential negative consequences highlighted by its opponents.
Opposition from Addiction Specialists
One of the most vocal opponents of the online casino proposal is the Fédération Addiction, a network of addiction specialists and professionals. They argue that legalizing online casinos could worsen the existing problem of gambling addiction in France. Statistics from 2019 reveal that nearly 1.4 million French citizens were at risk of excessive gambling, with around 400,000 identified as pathological gamblers. The organization has labeled the amendment as “irresponsible and contrary to public health priorities,” emphasizing the potential for increased addiction rates if online casinos were legalized.
Concerns from Casino Operators
Real-world casino operators have also raised alarms about the potential impact of online casino legalization on their businesses. Grégory Rabuel, president of the Casinos de France association, has warned that the introduction of legalized online casinos could lead to a revenue decline of up to 30% for land-based establishments. This decline could result in the closure of approximately 30% of physical casinos, jeopardizing around 15,000 jobs across the country. Rabuel has described the proposed legislation as potentially signing the “death warrant” for many traditional casinos in France, highlighting the dire consequences for the industry.
The Case for Legalization
Despite the significant opposition, proponents of the legislation argue that a substantial illegal online casino market already exists in France. Estimates from the French national gaming authority, the Autorité nationale des jeux (ANJ), suggest that this black market generates between €748 million and €1.5 billion annually. Advocates for legalization contend that regulating online casinos would allow the government to bring this revenue under state control. They propose imposing a gross gaming revenue (GGR) tax of 55.6% on licensed operators, which could significantly boost public finances.
Pushback from Local Authorities
The backlash against the proposal was swift and widespread. Approximately 130 French mayors expressed their opposition in an editorial published in Le Figaro. They cautioned that legalizing online casinos could open a “Pandora’s box” of increased gambling addiction and financial instability for the casino industry. The editorial called on the government to reconsider its approach and protect the interests of land-based casinos, ensuring that any new laws would not disadvantage them.
Government’s Response and Future Considerations
In light of the strong opposition, Minister Laurent Saint-Martin announced that the amendment had been withdrawn from current budget discussions. He emphasized the importance of further dialogue to address the concerns raised by regional leaders and the casino industry. “We must not make mistakes. We must ensure that it doesn’t harm certain stakeholders, especially land-based casinos,” he stated during a radio interview.
While the government has temporarily postponed its plans, the issue of online casino legalization is expected to remain on the agenda. The administration retains the authority to revisit the legislation in the future, potentially with revised measures that balance the need for tax revenue generation, harm reduction efforts, and protections for physical casinos. The ongoing discussions reflect the complexities of navigating the evolving landscape of gambling in France, where the interests of various stakeholders must be carefully weighed.