France Reconsiders Online Casino Legalization Amid Economic and Social Concerns

France recently announced a pause on the proposed legalization of online casinos, an amendment initially included in the 2025 national budget. The amendment was part of the government’s efforts to align French gambling regulations with those of other EU nations, as France, along with Cyprus, is currently the only member state to ban online casino gaming. The proposal, however, sparked intense debate across various sectors, with addiction specialists and representatives from land-based casinos expressing significant opposition, citing public health and financial impacts.

Prime Minister Michel Barnier’s administration initially championed this amendment, asserting that legalizing online casinos would help curb the rising illegal gambling market and redirect some of the revenue into government coffers through a substantial 55.6% gross gaming revenue tax. Illegal online casinos are estimated to generate up to €1.5 billion annually in France, accounting for approximately 10% of the gambling market. Legalization, advocates argued, would bring this activity under regulatory oversight, helping mitigate its impact on public health while bolstering state revenue.

Despite the government’s assurances, the amendment quickly encountered pushback from addiction advocacy groups and the land-based casino industry. Féderation Addiction, an organization focused on addiction prevention, strongly criticized the proposal. The group labeled it “irresponsible and contrary to public health priorities,” pointing to a 2019 statistic revealing that over 1.4 million people in France were at risk of excessive gaming, with nearly 400,000 facing pathological gambling issues. They warned that the legalization of online casinos could exacerbate these problems, particularly among vulnerable populations.

Meanwhile, land-based casino professionals expressed fears over potential economic fallout. The trade body representing physical casinos, Casinos de France, argued that opening up online casinos would pose a severe threat to traditional establishments. In an interview with Les Echos, Grégory Rabuel, President of Casinos de France, projected a loss of 20-30% in revenue for land-based casinos, with an estimated closure of 30% of venues and a potential job loss of around 15,000 positions. He described the amendment as effectively “signing the death warrant” for traditional casinos in France, which would face steep competition from digital platforms.

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Following the vocal opposition, France’s Budget Minister Laurent Saint-Martin announced that the government would delay the amendment to conduct further consultations. The move aims to address the concerns raised by physical casinos and local authorities, particularly those regarding job losses and the financial stability of existing gambling establishments. Minister Saint-Martin underscored the importance of avoiding any missteps that could harm specific stakeholders, affirming, “We must ensure that it doesn’t harm certain stakeholders, especially land-based casinos.”

The intervention also received support from regional leaders. A group of approximately 130 mayors across France published an editorial in Le Figaro expressing their resistance, arguing that legalizing online casinos could disrupt local economies and social structures. The editorial described the legalization as “opening a Pandora’s box,” suggesting that it could ultimately undercut the government’s objectives of increased tax revenue and economic support.

Casinos de France echoed this sentiment, pushing for an approach where any legalized online casino market would operate under a regulatory model akin to land-based casinos. Rabuel called for “a framework of consultation and constructive dialogue” in the case of any future policy discussions on online casinos.

Source:

, rfi.fr, October 23, 2024.