France to Legalize Online Casinos to Combat Black Market
France’s government, led by Prime Minister Michel Barnier, is moving forward with plans to regulate online casinos, according to a report by France 24, in what would be a major change for a country that currently restricts most online gaming activities.
LISTEN TO THIS ARTICLE:There are several challenges facing the proposed legislation. Traditional brick-and-mortar casinos strongly oppose the introduction of online casinos, arguing that it could lead to job losses and enable dishonest operators to exploit the market. However, it is understood that despite this resistance, the government is determined to move forward.
Black Market Online Gambling Thriving in France
The push for regulation comes at a critical time. The Association Française du Jeu en Ligne has warned that France is effectively “losing the war” on illegal gambling. While sports betting remains regulated, the growth of the black-market for online casino gaming is worrying. Illegal operators have a stronghold over the sector, making it difficult for authorities to manage channeling rates effectively.
Barnier’s administration has justified the shift toward a regulated online casino market as a step toward aligning France’s policies with other European Union nations. A proposal to amend the 2025 budget has already been introduced, signaling a clear intent to move forward.
Currently, France only allows regulated betting on sports, poker, and lotteries. Although poker is considered a form of iGaming, it is categorized as a “game of skill,” unlike casino games, which are often seen as games of chance.
The increasing popularity of illegal gambling operations has also had financial repercussions. The government estimates that the black-market online casino sector is worth approximately $1.7 billion, leading to substantial revenue losses. With one of the highest budget deficits in the EU relative to its GDP, France is seeking solutions, and legalizing online casinos could provide a much-needed financial boost. By introducing a regulated market, the government hopes to not only improve consumer protection but also enhance its tax revenues.
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Traditional Casinos Concerned over Potential Job Losses
The push for legal online casinos has drawn sharp criticism from traditional casinos. Physical venues are concerned that their revenues could drop by 20% to 30%, leading to a possible loss of thousands of jobs. Gregory Rabuel, head of the French Casino Association, has expressed fears that as many as 15,000 positions could be at risk if online casinos are legalized.
Nevertheless, proponents of the new legislation argue that the current situation already threatens the livelihood of brick-and-mortar establishments. With illegal operators siphoning off revenue, supporters claim that the physical casinos’ concerns are overstated. They believe that a regulated online market would redirect this income back into the legitimate economy, benefitting both the state and local businesses.
Barnier’s proposal also addresses the fiscal aspect of the reform. As part of the effort to establish a regulated online casino sector, the government has suggested a 55.6% tax rate on the newly introduced vertical. This tax rate is designed to generate significant revenue, which would help reduce France’s budget deficit. Earlier concerns about potential changes to existing gambling taxes were dismissed, leaving the focus on the new online market.
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