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 that maintains a ban on online casino games. This unique position has sparked intense debate as the French government contemplates a significant shift in its gambling legislation. The potential legalisation of online casinos is being framed as a necessary step to align with the practices of other EU nations, but it has also raised alarms among physical casino operators who fear dire repercussions.
The Government’s Proposal
On October 21, the French government introduced an amendment to the draft 2025 budget, which aims to authorise online casinos. This proposal is part of a broader initiative to modernise the gaming framework in France, acknowledging that the country is lagging behind its European counterparts. The amendment asserts that legalising online casinos is essential for regulating the gambling landscape more effectively and curbing the rise of illegal gambling operations that have proliferated in recent years.
The Rise of Illegal Gambling
Proponents of online casinos argue that legalisation could help combat the growing prevalence of illegal gambling platforms. According to the French national gaming authority, l’Autorité nationale des jeux (ANJ), the illegal online gambling market in France is estimated to generate between €748 million and €1.5 billion annually. This figure represents a significant portion of the overall gambling market, accounting for approximately 5% to 11%. By bringing online casinos into the legal fold, the government hopes to implement regulations that not only control the market but also protect public health by limiting the negative impacts of gambling.
Financial Implications
The financial stakes are high. Legalising online casinos could potentially generate up to €1 billion in tax revenue for the French state, based on a proposed tax rate of 55.6% on gross gaming revenue, similar to that applied to online lottery games. This revenue could be crucial for funding public services and addressing the social issues associated with gambling.
Concerns from Physical Casinos
Despite the potential benefits, the reaction from physical casino operators has been overwhelmingly negative. Industry leaders argue that the introduction of online casinos could spell disaster for their establishments. Grégory Rabuel, chairman of the Casinos de France industry association, has voiced strong opposition, claiming that the move could lead to a 20% to 30% decline in gross gaming revenue for land-based casinos. He warns that this could result in the closure of up to 30% of physical casino establishments, translating to an estimated loss of 15,000 jobs.
Rabuel has characterized the proposal as a “death warrant” for land-based casinos, emphasizing the social ramifications of such a shift. The fear is that the allure of online gambling could draw customers away from physical venues, undermining the traditional casino experience that many patrons cherish.
The Broader Context
The debate over online casinos in France is not merely a matter of financial gain or loss; it touches on deeper issues of regulation, public health, and the future of gambling in the country. Advocates for legalisation argue that a regulated online casino market could provide safer gambling options, while opponents fear that it could erode the very fabric of the casino industry that has been a staple of French culture for centuries.
As the Assemblée nationale continues to examine the proposed amendment, the outcome remains uncertain. The clash between the potential benefits of legalising online casinos and the dire warnings from physical casino operators encapsulates a pivotal moment in France’s gambling landscape. The decision will not only shape the future of gambling in France but also set a precedent for how other EU countries approach the regulation of online gaming.