France Considers Legalizing Online Casino Games to Combat Illegal Sites and Boost Revenue
The French government has proposed lifting the ban on online casino games, aiming to reduce illegal gambling and generate additional tax revenue. The amendment, part of the 2025 draft budget, could have far-reaching effects on both the digital and land-based casino sectors.
Current Regulations on Gambling in France
France has long maintained some of the strictest online gambling regulations in Europe.
While sports betting, horse racing, and poker are allowed online, casino games like blackjack, roulette, and slot machines remain banned.
The only legal operator for online lottery services is La Française des Jeux (FDJ).
This stands in stark contrast to many other European nations, where online casino games are widely regulated and taxed.
Proposal to Legalize Online Casino Games
In a bid to address the growing presence of illegal gambling sites and boost state finances, France has introduced a measure to legalize online casino games.
This amendment is part of the draft 2025 budget currently being reviewed by the National Assembly.
If the proposal is approved, online casino games would be taxed at 55.6% of their turnover.
A study by France’s gaming watchdog, ANJ, revealed that illegal gambling sites generated between €748 million and €1.5 billion in gross revenue in the first quarter of 2023.
Legalizing online casino games, the government argues, would not only curb illegal activity but also safeguard public health by better regulating access for vulnerable individuals, particularly those with gambling addictions.
Concerns from the Land-Based Casino Industry
While the government is focused on reducing the appeal of illegal sites, physical casinos in France are wary of the potential impact.
According to Grégory Rabuel, president of the Casinos de France union, opening the online casino market could lead to a 20-30% decline in revenue for land-based casinos, potentially forcing 30% of establishments to close.
Rabuel stressed that if the online casino market is opened, physical casinos should play a central role in the regulation and operation of these platforms.
He argued that it is essential for local economies and public safety that any expansion into online gambling involves existing physical venues.
The Impact on Public Finances
France is facing significant financial pressure, with the country’s public deficit reaching 5.5% of GDP in 2022, well above the EU’s 3% target.
The deficit is expected to worsen, exceeding 6% this year. In light of this, the government is looking for new sources of revenue, and the taxation of online casino games could be one such avenue.
While some concerns remain about whether legalizing online casinos will fully eliminate illegal operators, the potential tax revenue from regulated platforms could help alleviate France’s budgetary issues.
Elsa Trochet-Macé, a spokesperson for the ANJ, acknowledged that while the legalization could provide benefits, it must be approached cautiously to avoid weakening the existing network of over 200 land-based casinos.
