France Plans to Open the Doors to Online Casinos Next Year

France Set to Legalize Online Casinos in 2025

France is gearing up to legalize online casinos in 2025, a move that would align the country’s gambling regulations with the majority of European Union (EU) member states. The proposal, introduced as an amendment to the 2025 budget, aims to bring France into step with EU neighbors where online casino gaming is already regulated and legal. Currently, France and Cyprus are the only two EU countries that maintain a ban on online casinos, making this a significant policy shift for the French government under Prime Minister Michel Barnier.

The Push for Legalization

France’s government has long allowed online sports betting and poker, the latter being considered more of a skill-based game. However, online casino games have been banned due to concerns over gambling addiction and its potential societal impact. The new move, presented in parliament, reflects the government’s growing recognition of the challenges posed by the burgeoning illegal online casino market. This black market is estimated to generate up to €1.5 billion ($1.63 billion) annually, or approximately 10% of the total gambling sector’s revenue in France.

By legalizing and regulating online casino platforms, the government intends to bring these earnings under control, ensure consumer protection, and impose strict regulatory oversight to mitigate gambling-related harms. The move is also expected to generate substantial tax revenue, with a proposed 55.6% tax on gross revenues from online casinos. This would provide a significant financial boost, with taxes benefiting state coffers while establishing a more controlled gambling environment.

Opposition from Bricks-and-Mortar Casinos

While the government’s proposal seeks to modernize France’s gambling landscape, traditional bricks-and-mortar casinos have voiced strong opposition. Casino operators are warning that legalizing online casinos will have a dire impact on their revenues, potentially reducing turnover by 20% to 30%. Gregory Rabuel, the head of France’s casino association, has been vocal about the potential fallout, stating that the change could result in the closure of 30% of land-based casinos, leading to the loss of around 15,000 jobs.

The casino industry’s concerns revolve around increased competition, as players would gain access to a wider array of online games, which are easily accessible and often more convenient than visiting physical casinos. Operators argue that the online casino experience, which includes a vast selection of games, appealing bonuses, and 24/7 availability, would draw customers away from physical establishments.

Balancing Regulation and Consumer Demand

Supporters of the government’s proposal argue that the legalization of online casinos is inevitable, given the size of the current illegal market. They assert that regulating online gambling platforms would not necessarily lead to greater competition than what already exists in the black market. Instead, legalization would introduce rules to better protect consumers, impose age restrictions, and help address problem gambling more effectively than an outright ban.

Proponents also highlight that many countries within the EU have successfully integrated regulated online casinos into their gambling sectors without devastating effects on land-based operators. For instance, countries like Italy and Spain, which have legalized online casinos, have managed to maintain a healthy balance between online and physical gambling establishments. The argument is that legalization would formalize an already-existing online market, ensuring greater accountability and providing new revenue streams for the government.

Impact on the Broader Economy

One of the key drivers behind this legislative push is the expected economic benefits. With a regulated online casino market, France could capitalize on a tax windfall while also addressing public health concerns. By creating a framework for responsible gambling, authorities hope to curb addiction rates while keeping the activity within a regulated environment.

The decision to legalize online casinos also aligns with the broader trend of digital transformation within the gambling industry, particularly following the COVID-19 pandemic, which has pushed many consumers toward online platforms for entertainment. By opening the online casino market, France would provide its citizens with a legal and safe alternative to unregulated platforms, while generating economic benefits in the form of taxes and job creation within the digital gambling sector.

Looking Ahead / Online Casinos in France

As France prepares to debate this legislation, the country finds itself at a pivotal moment in its gambling policy. On one hand, there is a need to modernize and regulate an industry that has largely migrated online. On the other hand, the traditional casino industry, which has been a mainstay of French tourism and local economies, faces a significant challenge.

Should the government proceed with the legalization of online casinos, it will be critical to strike a balance between protecting consumer interests, generating state revenue, and ensuring that traditional casinos are not disproportionately harmed. This will likely involve implementing stringent regulations, promoting responsible gambling initiatives, and possibly providing support for land-based casinos to help them adapt to the changing landscape.

In the meantime, all eyes will be on France as it navigates the legislative process and debates the future of its gambling industry. If successful, the country could become a model for how to integrate online casinos into an established gambling sector while mitigating the risks of addiction and protecting traditional operators. The outcome of this legislative push will not only shape France’s gambling landscape but could also influence other countries that have yet to legalize online casinos.