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France Considering iGaming

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France's Prime Minister Michel Barnier arrives to the Hotel de Matignon in Paris on October 29, 2024. Geoffroy Van Der Hasselt / AFP

France is only one of two European Union members without online casino gambling, but that could change under newly appointed Prime Minister Michel Barnier.

Will the Ban Be Lifted?

Cyprus and France are the only two EU members without online casino gambling. However, French lawmakers are seriously considering licensing, regulating, and taxing iGaming within its borders as a way to cut the nation’s rising deficit and battle illegal operators. “Those that exist, which are sometimes operating illegally, must either be closed or be regulated, or have to contribute to the national budget via taxes,” Finance Minister Antoine Armand said Tuesday, according to the BNN report.

Since 2010, France has had one foot in the digital gaming door, as that was the year that the National Gaming Authority permitted online betting on sports, horse racing, and poker. Only online slots and table games are still prohibited, but the deficit continues to be an ever-growing burden on the economy, and innovative ways to curtail it are being sought.

Legislative action could come as early as 2025, but there is much to be done between now and then. One popular plan is to institute a 27.8% corporate tax and 27.8% of the revenue earmarked as social security contributions, for a total tax of 55.6% on the online casino operators’ revenues.

The government statement added, “While one in two consumers of illegal offers are unaware of their illicit nature, playing these games is not without risk. There is no approval of the games used, making cheating possible; winnings may not be paid; minors are not protected; bets are not supervised; and the theft of personal data is frequent.”

Not Everyone’s a Fan

Few ideas gain universal approval, and online casino gaming is certainly not one of them. Although the positive economic impact is obvious and would be a welcome revenue source for a national government that finds itself increasingly cash-strapped, the deleterious societal effects are also being considered.

“While the number of problem gamblers is already increasing, this reform of considerable magnitude cannot be adopted hastily without consultation with addiction stakeholders and a debate on its health consequences,” said Catherine Delorme, president of France’s Addiction Federation. “Legalizing online casinos, by a simple amendment, is not an acceptable process in view of the issues at stake.”

The Addiction Federation is not the only group opposed to iGaming, but so too are the casino operators and trade unions who have said there could be “catastrophic consequences.” Cannibalization from online casino gambling is a major concern. Gregory Rabuel, president of the Casinos de France union and CEO of the Groupe Barrière, estimates that 65 of the nation’s 202 casinos (30%) could shutter their doors if iGaming is legalized. “It is a thoughtless choice, without any consultation, brutal and hasty,” said Rabuel.

Whether the legislature will pass an iGaming bill next year is still not certain, but the allure of several hundred million euros in additional revenue may be too tempting to ignore any longer.