France Proposes Online Casino Legalization for 2025

In a bid to generate additional tax revenue and combat illegal gambling, France is taking steps toward legalizing online casino games. The proposal is part of the country’s 2025 budget plan, aiming to bring France in line with the broader European Union, where online casinos are largely legal. Currently, France and Cyprus stand alone as the only EU member states that still prohibit online casino gambling.

The move comes as France grapples with a significant public deficit, which exceeded 5.5% of GDP last year. The legalization of online casinos is expected to help boost state revenue, with a proposed tax rate of 55.6% on the gross turnover of online casino platforms. This figure mirrors the current taxation on online lottery games, which are already legal in France under La Française des Jeux (FDJ).

Advocates of the proposal argue that bringing online casinos into the legal framework would provide much-needed regulation and oversight, reducing the prevalence of illegal gambling operations. The Autorité Nationale des Jeux (ANJ), France’s national gaming authority, estimates that the country’s black market for online gambling is worth between €748 million and €1.5 billion annually. Legalizing online casinos could help redirect some of this revenue into the state’s coffers.

French Finance Minister Antoine Armand, who has publicly supported the initiative, stressed that “those that exist, which are sometimes operating illegally, must either be closed or be regulated or have to contribute to the national budget via taxes.” The government also hopes that regulating online casinos will reduce the potential public health risks associated with gambling addiction, as regulation could offer stronger safeguards and oversight than illegal platforms.

Despite the potential financial benefits, the proposal has sparked resistance from France’s land-based casinos, who fear the move could significantly harm their businesses. The Casino de France union, representing many physical establishments, has voiced concerns that the legalization of online casinos could lead to a severe reduction in their revenues and job losses across the sector.

According to Grégory Rabuel, president of the Casinos de France union, opening the online casino market to competition would likely result in a 20% to 30% drop in gross gaming revenue for brick-and-mortar casinos, potentially leading to the closure of 30% of physical establishments. Rabuel also emphasized the potential social impact, noting that up to 15,000 jobs could be at risk if online casinos are legalized.

Rabuel warned that “there will be catastrophic consequences, particularly in social terms,” if the government moves forward with this plan without sufficient protections for land-based casinos. He also suggested that any future online casino market should involve the participation of physical casino operators to ensure a balance between the digital and traditional sectors.

Top Blackjack casinos

Overall Rating

97

Visit Casino Read Review

Overall Rating

96

Visit Casino Read Review

Overall Rating

96

Visit Casino Read Review

While the financial incentives for legalizing online casinos are clear, the French government must also address concerns over public health risks. The ANJ has expressed caution about the addictive potential of online casino games, which could exacerbate gambling addiction problems if not properly regulated. Elsa Trochet-Macé, a spokesperson for the ANJ, noted that the situation is “a complex question insofar as the online casino offer is particularly addictive,” emphasizing that regulation must be carefully designed to mitigate these risks.

The government has proposed that any legalization of online casinos would be accompanied by robust regulations in collaboration with the ANJ. These measures would aim to limit the negative effects of gambling while ensuring that legal platforms operate in a secure and transparent manner. Advocates of the proposal argue that regulating online casinos would not significantly worsen the current situation, as illegal platforms already account for a large share of the market.

Source:

“Legalising online casinos? France places a bet on solving budget woes“, euronews.com, October 23, 2024.