Proposed iGaming Reforms in France Stalled by Political Instability
French Prime Minister Michel Barnier is on the brink of a no-confidence vote that could cut his term short and throw legislative plans into disarray, including those affecting the iGaming sector. His proposal to raise taxes on online betting has drawn sharp criticism.
Cross Party Opposition to Barnier
Michel Barnier’s government is under fire from both sides of the political spectrum. The far left party La France Insoumise (LFI) and the far right Rassemblement National (RN) are opposed to the Prime Minister and other MPs are unhappy with his recent budget.
Barnier’s attempt to tackle France’s growing national debt included tax increases on various sectors, including online gambling. France’s debt is above EU thresholds but the budget was rejected with critics calling them sectoral punishment.
iGaming Tax Proposals Spark Industry Backlash
One of the most contentious parts of the budget was the tax increases on online betting. Critics said these were unfair on online operators while leaving traditional gambling like land based casinos and lotteries untouched. These policies could destabilise the online gaming sector which is growing in Europe.
Despite this the industry got a temporary reprieve last week when the budget was rejected. But the no confidence vote could lead to wider political instability and iGaming legislation could be at risk.
Legislative Uncertainty
If the no confidence vote succeeds the government will likely delay the 2025 budget until a new government is formed. This will delay France’s long awaited iGaming regulations as the political priority will be to form a new government.
The country’s gambling regulator, ANJ, has recently appointed Jérôme Gallot as gaming ombudsman, signaling a potential shift towards greater oversight in the sector. However, without a stable government, the industry’s regulatory progress remains uncertain.
