We have an interesting development from France as the French government has announced its decision to postpone its plan to regulate online casino operators in the country.
This news comes just one week after the French government submitted the historic proposed amendment that regulates the online casino vertical in France as part of the planned budget for 2025.
However, shortly after the proposal was officially submitted, the government did a 360 and reversed its initial decision due to the fierce criticism from land-based casinos who threatened with closures and job losses.
This resulted in Laurent Saint-Martin, the Budget and Public Accounts Minister of France, announcing on Sunday that the amendment has been withdrawn, stating that more consultations are needed.
Talking to Radio J, Saint-Martin said that the government recognizes the delicate situation that puts land-based stakeholders at risk:
I am being very vigilant about this issue. We must make no mistakes. We must ensure that it doesn’t harm certain stakeholders, especially land-based casinos.
Grégory Rabuel, the CEO of Barrière and President of the land-based casino body Casinos de France hailed this decision by the government by stating that such legislation must take place “within a framework of consultation and constructive dialogue.”
We are relieved that the government has heard our concerns. We remain vigilant to ensure that the commitment made by the Budget Minister is upheld: any future legislative or regulatory changes should take place within a framework of consultation and constructive dialogue.
France, along with Cyprus, are the only two European states where online casino gaming is illegal. The only forms of online gambling entertainment that are allowed in France are poker and sports betting.
As a result, the country is facing serious challenges with black market casino operators, with the illegal offer being estimated to cost the government of France between €748m and €1.5bn annually.
The failed proposed amendment aimed to battle this issue, with the French government projecting that online casino revenue could bring in €1bn, with online casino operators reportedly paying 27% on gross gaming revenues, with the total tax of the vertical being 55.6%.
What swayed the decision was the land-based sector which claimed that a competitive gambling market would cause the French government to lose €450m in tax revenue from land-based casino establishments.
Consequently, Casinos de France calls on the government to give land-based casino operators a period of three years of exclusivity over their online casino counterparts.
