Effects of Physical Casinos on Public Health

It is one of only two EU countries that still bans this. Physical casinos warn of ‘catastrophic consequences’ of legalisation

France, alongside Cyprus, stands as one of the last bastions in the European Union where online casino games remain illegal. This unique position has sparked a heated debate as the French government contemplates the potential legalisation of online casinos, a move that could reshape the gambling landscape in the country.

The Government’s Proposal

Recently, the French government introduced an amendment aimed at authorising online casinos as part of the draft 2025 budget. This proposal was presented to the Assemblée nationale on October 21, 2023, and has ignited discussions about the future of gambling in France. The amendment highlights a desire to align France’s gaming regulations with those of its European neighbours, acknowledging that the current ban places the country in a minority position within the EU.

The amendment states, “This move is part of a drive to bring the gaming framework into line with that of our main European neighbours, given that France, along with Cyprus, is the only country in the European Union to ban online casino games.” This statement underscores the government’s recognition of the growing pressure to modernise its gambling laws.

The Case for Legalisation

Advocates for the legalisation of online casinos argue that it could significantly curb the rise of illegal gambling operations that have proliferated in recent years. The French national gaming authority, l’Autorité nationale des jeux (ANJ), has reported a concerning increase in illegal online gambling, which is estimated to generate between €748 million and €1.5 billion annually. This figure represents a substantial portion of the overall gambling market, estimated to be between 5% and 11%.

Supporters of the amendment assert that legalising online casinos would not only help regulate the gambling industry but also provide a framework to protect public health. The government has indicated that such a move would allow for more comprehensive legislation aimed at mitigating the negative impacts of online gambling. The proposed regulations would be developed in collaboration with the ANJ and other relevant authorities, ensuring that the legalisation process is carefully managed.

Furthermore, estimates suggest that if online casinos were legalised and taxed at a rate of 55.6% on gross gaming revenue—similar to online lottery games—it could generate up to €1 billion for the state. This potential revenue boost is a compelling argument for proponents of the amendment, who see it as a way to enhance public finances while addressing the challenges posed by illegal gambling.

Concerns from Physical Casinos

Despite the potential benefits of legalising online casinos, physical casinos in France have voiced strong opposition to the proposal. Industry leaders argue that the introduction of online gambling would lead to devastating consequences for land-based establishments. Grégory Rabuel, chairman of the Casinos de France industry association and CEO of the Barrière group, has been particularly vocal about the risks involved.

Rabuel claims that the legalisation of online casinos could result in a staggering 20% to 30% decline in gross gaming revenue for physical casinos. He warns that such a downturn could lead to the closure of up to 30% of existing establishments, which would have dire implications for employment in the sector. According to Rabuel, the potential job losses could reach as high as 15,000, significantly impacting communities that rely on these venues for economic stability.

In an interview with Les Echos, Rabuel expressed his concerns, stating, “There will be catastrophic consequences, particularly in social terms. It will be tantamount to signing the death warrant for land-based casinos.” His comments reflect a broader anxiety within the industry about the future viability of physical casinos in an increasingly digital world.

The Broader Implications

The debate over the legalisation of online casinos in France is not just about gambling; it touches on issues of regulation, public health, and economic stability. As the government weighs the potential benefits against the concerns of physical casinos, the outcome of this discussion could have lasting implications for the gambling landscape in France.

With the Assemblée nationale now examining the proposed amendment, the future of online casinos in France hangs in the balance. The decision will not only affect the gambling industry but could also reshape the way French citizens engage with gaming, potentially ushering in a new era of regulated online gambling that aligns with the practices of other European nations.

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