France Postpones Legalizing Online Casinos Following Industry Pushback
France’s ambitious plan to legalize online casinos has been momentarily shelved due to considerable resistance from industry stakeholders and regional authorities. Prime Minister Michel Barnier’s government had initially included a significant amendment to the 2025 budget aimed at introducing online casino legislation. However, the proposal faced stiff opposition, prompting Budget Minister Laurent Saint-Martin to announce its withdrawal, emphasizing the need for further consultation with concerned parties.
Background of the Legislation
The amendment to legalize online casinos formed part of a broader government initiative to modernize France’s gaming laws and bolster tax revenue. Currently, France stands alongside Cyprus as the only European Union countries prohibiting online casinos. This legislative effort aimed not only to bring France in line with most of its EU counterparts but also to regulate a burgeoning illegal online gambling market. Estimates suggest this black market generates between €748 million and €1.5 billion annually, highlighting significant untapped revenue potential.
Voices of Opposition
Concerns Over Problem Gambling
Among the loudest critics of the proposed legislation is the Fédération Addiction, a prominent network of addiction specialists and healthcare professionals. Their argument centers on the risk that legalizing online casinos could exacerbate an already urgent public health issue—problem gambling. According to a 2019 report, nearly 1.4 million French citizens were at risk for excessive gambling, with around 400,000 identified as pathological gamblers. The federation has labeled the proposed amendment as “irresponsible and contrary to public health priorities.”
Impact on Traditional Casinos
The opposition also includes real-world casino operators who fear that the introduction of legalized online casinos could severely impact their businesses. Grégory Rabuel, the president of the Casinos de France association, provided a stark warning: legalizing online play could lead to a potential revenue decrease of up to 30% for land-based establishments. According to Rabuel, this could put around 15,000 jobs at risk and potentially result in the closure of nearly a third of existing physical casinos—a situation he described as signing a “death warrant” for many traditional venues.
The Case for Legalization
Supporters of the amendment have pointed out the necessity of addressing the underlying black market for online gambling, which they argue is both a significant source of revenue and a potential public health issue. By legalizing and regulating online casinos, advocates suggest that the government could bring this lucrative market under state control, imposing a gross gaming revenue (GGR) tax of 55.6% on licensed operators. This regulatory approach would aim to provide a safer gambling environment while generating substantial tax revenue for the French government.
Swift Pushback and Government Reassessment
The backlash against the proposed legislation was swift and widespread. Approximately 130 French mayors published an editorial in Le Figaro to express their dissent, warning that legalizing online casinos could open a “Pandora’s box” that may lead to increased gambling addiction and financial instability in the casino industry. Their message was clear: any new laws must safeguard the interests of physical casinos to avoid unintended consequences.
In light of such pushback, Minister Laurent Saint-Martin declared the amendment withdrawn from the current budget discussions. He noted that the government must engage in further dialogue to ensure that the concerns of local leaders and the casino industry are adequately addressed. “We must not make mistakes. We must ensure that it doesn’t harm certain stakeholders, especially land-based casinos,” he emphasized during a radio interview, highlighting the importance of a balanced approach.
Looking Ahead
While the government has put its plans on hold for now, the topic of online casino legalization will likely remain a prominent issue on the French political agenda. The administration reserves the right to revisit the legislative proposal in the future, potentially incorporating revisions that will better balance tax revenue generation, public health initiatives regarding gambling addiction, and protections for traditional casinos.
Conclusion
The postponement of online casino legalization in France showcases the complexities of modernizing gambling laws in a way that serves the interests of all stakeholders. As discussions continue, the challenge lies in crafting a framework that allows for growth and innovation in the gambling sector while simultaneously protecting those vulnerable to the risks of gambling addiction. The stakes are high, and as public health and economic interests collide, careful examination will be key in moving forward.
