France Halts Plans to Regulate Online Casino Industry

Government Withdraws Proposed Amendments

Plans to modernize France’s gambling industry by regulating online casinos have been shelved following the withdrawal of proposed amendments to the 2025 budget. Budget Minister Laurent Saint-Martin confirmed the decision, emphasizing the need for further consultation to prevent potential negative impacts on existing businesses.

Speaking on Radio J, Minister Saint-Martin stated: “There was talk that the government would submit an amendment. This is no longer the case. I believe we need to work among ourselves first. I am very vigilant about this issue. We must not make mistakes. We must ensure that it doesn’t harm certain stakeholders, especially land-based casinos.”

Current Gambling Laws Remain Unchanged

As a result of this decision, France will continue to operate under its 2010 gambling legislation. The existing laws regulate sports betting, horse racing, and poker, while online casino activities remain prohibited. This maintains a fragmented market that some argue hinders the industry’s growth and competitiveness.

The initiative to regulate online casinos was initially introduced by government officials aiming to boost the country’s GDP amid economic challenges. The proposed changes included a 27.8% levy on the gross gaming revenue of online casinos and an increase in taxes to 55% across the entire gambling sector.

Backlash from Land-Based Casino Operators

The proposed reforms faced significant opposition from the land-based casino industry. Casinos de France (CdF), the trade association representing over 200 physical casinos, expressed strong disapproval. Grégory Rabuel, President of CdF and CEO of Barrière Groupe, described the proposal as “a totally ill-considered decision, without any consultation with stakeholders.”

In response to the government’s plans, CdF submitted the JADE proposal, urging regulators to grant physical casinos a three-year exclusivity period to operate digital casino platforms. This measure was suggested to mitigate potential losses and allow land-based operators to adapt to the online market.

Warnings of Economic Consequences

Grégory Rabuel issued a stark warning about the potential impact of opening the online casino market to competition. “Opening up online casinos to competition will lead to a 20-30% drop in gross gaming revenue for land-based casinos and the closure of 30% of establishments. This will have catastrophic consequences, particularly in social terms: it is estimated that 15,000 jobs will be lost. More generally, this is tantamount to signing the death warrant for land-based casinos,” he stated.

The government’s decision to halt the reforms indicates a willingness to engage in further dialogue with industry stakeholders.