France’s Online Casino Legalization Plan on Hold Amid Industry Opposition
In an unexpected turn of events, France’s ambitious plan to legalize online casinos has been put on hold. This decision comes in response to substantial opposition from various industry stakeholders and regional authorities. Under the leadership of Prime Minister Michel Barnier, the government had proposed an amendment to the 2025 budget that aimed to introduce online casino legislation. However, this initiative has now been shelved, pending further discussions. Budget Minister Laurent Saint-Martin underscored the necessity of addressing the concerns voiced by physical casinos and local representatives before proceeding.
The Initial Proposal: A Push Towards Modernization
The proposed amendment was part of the French government’s broader agenda to modernize the country’s gaming laws, intending to boost tax revenue while aligning France with its European Union counterparts. Notably, France and Cyprus are the only countries within the EU where online casinos are currently illegal. In light of this, the government recognized the urgent need to reevaluate the proposal. The apprehension surrounding the potential negative consequences, highlighted by its opponents, played a pivotal role in this reevaluation process.
Concerns from Stakeholders: The Voice of the Opposition
Gambling Addiction Advocacy Groups
One of the most vocal opposition groups has been the Fédération Addiction, a network of addiction specialists and professionals. They contend that the legalization of online casinos would worsen the already significant issues related to problem gambling within the country. As per 2019 statistics, nearly 1.4 million French citizens were deemed at risk of excessive gambling, with approximately 400,000 categorically identified as pathological gamblers. This organization has deemed the amendment as “irresponsible and contrary to public health priorities,” raising alarms about the potential surge in gambling-related problems.
Casino Operators’ Fears
Furthermore, operators of land-based casinos have expressed profound concerns regarding the impact of online casino legalization on their businesses. Grégory Rabuel, the president of the Casinos de France association, indicated that the introduction of legalized online casinos could potentially reduce the revenue of physical establishments by up to 30%. According to Rabuel, this decline could result in the closure of about 30% of traditional casinos, jeopardizing approximately 15,000 jobs. He evocatively stated that this move could signify the “death warrant” for numerous domestic casinos.
The Shadow of the Black Market
Despite these concerns, advocates for online casino legislation argue that a substantial illegal online casino market already thrives in France. The French national gaming authority, Autorité nationale des jeux (ANJ), estimates that this black market generates between €748 million and €1.5 billion annually. Proponents assert that by legalizing and regulating online casinos, the government could redirect this revenue into state governance, implementing a hefty gross gaming revenue (GGR) tax of 55.6% on licensed operators.
A Unified Opposition: Mayors Speak Out
Following the announcement of the amendment, a wave of dissent emerged from regional leaders. Approximately 130 mayors expressed their objections in an editorial published in Le Figaro, cautioning against the unintended repercussions of such legislation. They argue that legalizing online casinos could open a “Pandora’s box,” exacerbating gambling addiction and destabilizing the traditional casino industry. The editorial called upon the government to rethink the proposal and safeguard the interests of land-based casinos, advocating for assurances that new laws wouldn’t disadvantage them.
Government’s Response and Future Outlook
In light of the swift backlash, Minister Laurent Saint-Martin announced the withdrawal of the amendment from current budget discussions. He stressed the importance of further dialogue to address the various concerns raised by regional leaders and the physical casino industry. "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.
Although the government has temporarily shelved its online casino plans, the issue remains on the legislative agenda. The administration retains the option to revisit the proposal in the future, potentially with revised measures designed to strike a balance between tax revenue generation, harm reduction efforts, and the protection of physical casinos. The complexities of this issue will likely continue to provoke debate among lawmakers, industry stakeholders, and the public as France navigates the tumultuous waters of online gambling legislation.
As the nation’s gaming landscape evolves, the outcomes of these discussions will significantly shape the future of gambling in France, setting a precedent that could either pave the way for innovation in the sector or reinforce traditional gaming paradigms.
