Just a week after the idea was floated by the French government, the possibility of legalizing online casinos in France is dead…at least for now.
Citing the need for more time to dive into the drawbacks of legal internet casinos, the government said that it very well may come back to legalization in the future.
Key Highlights
- The French government had proposed an amendment to the 2025 federal budget to legalize online casinos.
- Budget Minister Laurent Saint-Martin said they need more time to make sure it wouldn’t “harm certain stakeholders.”
- Proponents of legalization believe it would generate billions in tax revenue.
- Brick-and-mortar casinos are against legalization but would be open to a three-year exclusivity period.
Government Needs More Time to Consider Land-Based Casinos
This month, the French government proposed an amendment to the 2025 federal budget plan that would have legalized online casino gaming.
France is one of two EU nations, along with Cyprus, that does not have legal online casinos. It does have online poker and sports betting.
In an interview with Radio J on Sunday, French Budget Minister Laurent Saint-Martin said that the government decided it needed more time to consider the possible negative effects of online casinos, especially the ramifications for brick-and-mortar casinos.
“There was talk that the government would submit an amendment. This is no longer the case,” Saint-Martin said. “I believe we need to work among ourselves first. We must ensure that [any changes] don’t harm certain stakeholders, especially land-based casinos.”
Proponents See Dollar Signs
If it wasn’t apparent from the legalization proposal being part of the budget, the reason for the proposed change to gaming laws was primarily about money.
According to the National Gambling Authority (ANJ), illegal, unlicensed online gambling sites are siphoning between $806 million and $1.62 billion from France residents each year.
By regulating online casino games through a multi-licensing model, France would better protect its consumers, regain more control over its online gambling market, and secure vital tax revenues.
– EGBA Secretary General Maarten Haijer
If online casinos were legalized and the black market was mostly eliminated, estimates are that with the proposed tax rate of 55.6% on turnover, the government could reap $1 billion per year.
Proponents of legalization also believe it will help shield consumers from unsavory operators and provide better resources and protections from problem gambling.
Late last year, European Gaming and Betting Association (EGBA) Secretary General Maarten Haijer said, “The ban is counterproductive and fails consumers. By regulating online casino games through a multi-licensing model, France would better protect its consumers, regain more control over its online gambling market, and secure vital tax revenues.
“The best way to tackle a black market is to establish a competitive regulated market alternative.”
Traditional Casinos Afraid Jobs Will Be Lost
As one might expect, brick-and-mortar casinos are not particularly keen on legalizing their online counterparts.
Gregory Rabuel, CEO of Barriere Groupe and President of Casinos de France, claimed that allowing online casino gambling could be catastrophic for the country’s land-based casinos.
Rabuel’s estimates present a doomsday scenario: traditional casinos’ gross gaming revenues could plunge 20-30%, up to 30% of France’s casinos could be shuttered, and 15,000 people could lose their jobs.
Exclusivity Period Could Be a Compromise
Should France eventually legalize online casinos, Casinos de France has suggested that existing brick-and-mortar casinos get market exclusivity for three years. After that, other online operators could be permitted to join the fray.
While online gambling companies would not love that, they would probably have the chance to partner with casinos.
Casinos in other jurisdictions have tried at times to go it alone and develop their own online gambling platforms. Most, if not all, realized that this was a bad idea – there was no need to reinvent the wheel.
Thus, the preferred practice now is for traditional casinos to partner with online gambling companies that can provide established platforms and technologies.
Sources
https://www.cocosapps.com/news/france-considering-legalizing-online-casinos-415558/
https://www.yogonet.com/international/news/2024/10/28/83433-france-withdraws-online-casino-amendment-from-2025-budget-citing-need-for-further-consultation
https://www.gamblinginsider.com/news/23443/egba-urges-france-to-legalise-online-casino-games-for-player-safety
