What does this mean for the iGaming industry?
France, known for its stringent stance on online gambling, is now on the brink of a transformative shift that could reshape its gaming landscape. With recent news that the French government is moving to legalise online casinos by mid-2025, the iGaming industry is abuzz. This proposed amendment, if passed, will legalise online casino games such as slots, blackjack, scratch cards, and roulette, currently banned in France. Here’s an in-depth look at what this development means for operators, players, and the country’s economic landscape.
Current Gambling Laws in France | What’s Allowed & What Isn’t?
At present, France has some of the strictest online gambling regulations in the European Union. Under the oversight of the National Gambling Authority (ANJ), online gambling options are restricted to sports betting, including horse racing, and several types of poker. The ANJ also enforces responsible gambling measures across all licensed platforms, whether online, at physical points of sale, or at racecourses. This tight regulatory framework has led many players to turn to unlicensed platforms or gambling operators outside France for access to popular casino games.
Why Legalise Online Casinos Now?
One of the main motivations behind this regulatory shift is economic. Legalising online casinos is part of the government’s 2025 budget planning and is expected to be a significant source of new tax income. Should the amendment pass, operators would face a tax rate of 55.6% on their gross gaming revenue (GGR), which could yield substantial funds for France’s public finances.
Another reason driving this change is the need to combat illegal gambling. By legalising and regulating online casinos, France hopes to provide a safe, regulated alternative to the unlicensed websites that many French players currently use. The ANJ has been actively pursuing reforms to bring rogue sites into compliance, including identifying the ultimate beneficial owners (UBOs) of offshore websites, particularly those based in jurisdictions with lax anti-money laundering regulations. Legalisation would allow France to extend its regulatory framework, bringing more operators under its control.
Potential Impact on the French iGaming Market
- Increased Competition: For the iGaming industry, this represents a massive opportunity to enter one of Europe’s largest markets. However, the high tax rate could be a challenge, as operators will need to balance profitability with compliance costs.
- Economic Boost: If the tax revenue aligns with projections, this move could provide a much-needed economic boost to the country, enabling funds for social security and other public services.
- Impact on Physical Casinos: The introduction of online casinos has caused concern among France’s 200 land-based casinos, which fear losing customers to the convenience of online gaming. In response, some brick-and-mortar casinos are lobbying for an initial three-year period during which only physical casinos could operate online platforms. This would provide them with a competitive edge and give them time to adapt to the online market.
The Road Ahead | Challenges & Expectations
The French government is keen to legalise online casinos, but there are still hurdles to clear. One challenge lies in passing the amendment through parliament and implementing robust regulatory measures to ensure responsible gaming, fair play, and protection for vulnerable players.
Additionally, France’s proposed 55.6% GGR tax is one of the highest in Europe, which may deter some operators or make it difficult for smaller players to enter the market. However, it also reflects France’s intent to maximise the fiscal benefits of the iGaming industry while ensuring operators contribute significantly to the country’s welfare.
What does this mean for the iGaming industry?
If France’s proposed legalisation moves forward as expected, the online casino landscape in the EU will see a major shift. Operators will face high compliance standards and taxation, but the French market’s size and potential for growth are undoubtedly appealing. The ANJ’s efforts to maintain strict oversight will help shape a safe and fair gaming environment, but how effectively these regulations are enforced will be crucial to the market’s long-term success.
As France gears up for this regulatory shift, iGaming operators and land-based casinos alike are preparing for a new era. For iGaming enthusiasts, this could mean access to a wider array of games, more competitive services, and the assurance of a regulated marketplace. For the industry, it’s a chance to tap into a high-potential market, albeit with significant regulatory obligations.
Recent discussions indicate that France’s journey toward online casino regulation is gaining strong momentum, with the country likely to approve this shift within the next 12-18 months. Land-based casino operators, led by the Syndicat des Casinos de France (CdF), are advocating for an initial 3-year exclusivity period, where only physical casino operators would be licensed for online platforms. This approach aims to protect local economic interests and sustain the nearly 200 communes reliant on casino revenue. The ANJ is actively working with stakeholders and will soon publish a report on the illegal online casino market, underscoring the urgency of this regulatory shift.
If legalisation proceeds, France would join the majority of European countries with regulated online casinos, creating a more secure and structured environment for French players and operators. This landmark development reflects a broader trend in Europe, where countries are reassessing their approach to online gambling. For now, all eyes are on France as it prepares for a digital gambling transformation that could set a precedent for balanced regulation and economic revival.
The amendment has been postponed as further discussions with industry stakeholders are needed to reach a consensus. Stay tuned.
