France Halts Online Casino Plans Amid Opposition
### Key Points at a Glance
– France has put plans to legalize online casinos on hold for the time being.
– Reasons include opposition from land-based casinos and concerns about gambling addiction.
– Approximately three million French citizens gamble on offshore platforms despite the ban.
– Legalization could generate around €1 billion in annual tax revenue.
– Land-based casinos fear revenue losses and potential job cuts.
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Background: France’s Strict Gambling Regulations
France is one of the few EU countries that completely bans online casinos. Alongside France, only Cyprus has similarly restrictive policies. Historically, the country has favored land-based casinos, which were originally only allowed in tourist areas. A 1919 law further prohibited casinos within 100 kilometers of Paris. This regulation was later relaxed, but gambling laws remain strict.
While other forms of gambling, such as the state-regulated lottery (Loto) and the Pari Mutuel Urbain (PMU), already offer online services, the online casino segment remains untapped. Nevertheless, millions of French citizens use foreign platforms, increasing pressure on the government to regulate the market.
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Why Legalization Has Been Put on Hold
The French government had planned to legalize online casinos via decree to boost revenue and gain better control over the market. According to the Autorité Nationale des Jeux (ANJ), regulating the market could generate approximately €1 billion in annual tax revenue. These funds could be used to better combat gambling addiction and protect players.
However, the proposal faced significant opposition. The trade group Casinos de France warned that legalization could reduce land-based casino revenues by 20–30%. This could lead to the closure of up to a third of the 200 land-based casinos, putting approximately 15,000 jobs at risk. Additionally, the group called for online casino licenses to be granted exclusively to existing physical casino operators to minimize the impact on the industry.
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The Economic Importance of Land-Based Casinos
In 2023, France’s land-based casinos generated €2.7 billion in pre-tax revenue. This represents a significant portion of the €13.4 billion generated through legal gambling activities in the country. In addition to casinos, the Loto and the PMU also make substantial contributions to the economy.
The French Loto, which also offers online services, handled €21 billion in bets last year. Of this, €4.2 billion was allocated to taxes and social projects. The PMU, which has offered online betting and poker since 2010, achieved a net profit of €800 million, which was reinvested into the horse racing industry.
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What’s Next?
The government has announced plans to further review the proposal to legalize online casinos while considering the interests of all stakeholders. The goal is to find a compromise that balances player protection with the economic interests of land-based casinos. However, no timeline has been given for revising the law.
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Our Assessment
France’s cautious approach to legalizing online casinos highlights the complexity of the issue. On one hand, regulated online casinos could generate significant tax revenue and improve player protection. On the other hand, the interests of land-based casinos and concerns about job losses take center stage.
A potential compromise could involve initially granting licenses exclusively to physical casino operators to minimize the impact on existing establishments. In the long term, however, France will likely have to regulate the online casino market, as player demand and competition with offshore platforms continue to grow.
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