The French government is currently considering the possibility of legalizing online casinos for the first time in an effort to address a budget deficit that is projected to exceed 6% this year, which is double the European Union’s target of 3%. This proposal was included in the government’s 2025 draft budget, which was officially presented over the weekend and is currently being debated in the National Assembly.
One of the main motivations behind this proposal is to target the black market for online gambling, which is estimated to have generated between €748m ($806m) and €1.5bn ($1.6bn) in revenue last year, according to France’s gambling regulator. Lawmakers believe that legalizing online casinos could help combat the black market and also provide better oversight of addiction rates within the country.
If online casinos were to be legalized, the government has proposed a significant tax rate of 55.6% on the turnover from these operations. This high tax rate is seen as a way to generate revenue for the government while also discouraging excessive gambling behavior.
However, the land-based gambling sector in France is concerned about the potential impact of legalizing online casinos. It is estimated that nearly a third of physical gaming establishments could close as a result of a projected revenue drop of 20-30%. This has raised concerns within the industry about the potential economic consequences of this move.
France currently has around 200 land-based casinos, and there are suggestions that online gaming platforms should be offered in partnership with these physical properties. France is one of only two EU countries, along with Cyprus, that still completely bans online casinos, so this proposed legalization would represent a significant shift in the country’s gambling regulations.
Overall, the proposal to legalize online casinos in France is a complex issue that involves balancing the potential economic benefits with concerns about addiction and the impact on the existing land-based gambling sector. The outcome of the ongoing debates in the National Assembly will have significant implications for the future of online gambling in France.