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Published: 2024/11/02

Updated: 2024/11/02

Author: fredrik

France Considers Lifting Ban on Online Casinos by 2025

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The French government is contemplating a major change in its gambling laws that could legalize online casinos by 2025, unlocking a market projected to be worth EUR 1.5 billion. This shift would bring France in line with most European Union countries, where regulated online casinos are already permitted, and end a restriction that only France and Cyprus currently maintain in the EU. The proposal, introduced as an amendment to the 2025 national budget, underscores the government’s intention to bring domestic oversight to a sector where offshore sites are already popular among French players.

At present, France restricts online gambling to sports betting and poker, categorizing poker as a game of skill rather than chance. If the amendment is passed, French players would have access to legally sanctioned online casino games, which could boost industry growth and generate new tax revenue. By redirecting users from offshore platforms to regulated domestic sites, the government hopes to tap into a growing demand while capturing tax benefits. The European Gaming and Betting Association (EGBA) has long supported this move, highlighting that regulated online casinos would enhance player protections and ensure that the generated revenue contributes directly to the French economy.

For players, legal online casinos would expand access, allowing them to engage in games remotely without needing to visit physical venues. France’s online market may even explore digital currency options, following trends in other regions that permit crypto-friendly casinos. This could enable faster transactions and transparent record-keeping, offering additional benefits to French users if regulations allow for digital currency integration.

However, land-based casinos are concerned about the potential competition from online platforms. The national casino association has voiced strong opposition, warning that increased competition could lead to a revenue decline for physical casinos. According to Gregory Rabuel, the association’s president, up to 30% of land-based casinos could face closure, with a possible loss of 15,000 jobs. This has raised alarms about the potential impact on local economies and employment.

Proponents of the change argue that the effect on brick-and-mortar establishments may be overstated, as many French players already use offshore online casinos. They suggest that legalization would merely redirect this existing activity into a regulated environment rather than create a new wave of competition. Advocates see online options as a complement to physical casinos, potentially appealing to different demographics or those less inclined to visit traditional venues.

For the French government, this proposed legislation offers an opportunity to capitalize on an expanding sector. Data from France’s national gaming authority, l’Autorité Nationale des Jeux (ANJ), shows the potential value: under existing restrictions, online gambling generated roughly EUR 1.5 billion in gross gaming revenue last year. A proposed 55.6% tax on gross revenue could contribute significantly to public finances, especially as the demand for online gambling grows. ANJ’s recent data reveals a 24% year-on-year increase in sports betting for the first half of 2024, indicating sustained growth across the gambling sector.

If France moves forward with legalization, it may also influence broader regulatory trends across the European gambling industry. A regulated online casino market could promote responsible gambling, secure tax revenue, and reduce reliance on unregulated offshore sites. In this way, France would align with the EU’s stance on online gambling, enabling robust regulation, fair taxation, and strong player protections.

The government’s consideration of this proposal represents a pivotal moment for the French gambling industry. As debates continue, the outcome will shape not only the future of online gaming in France but may also provide a regulatory model for other nations facing similar decisions.

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fredrik

Fredrik Casino

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