Online casinos: the French government backstracks in the face of criticism

This Sunday, the French government decided to put on hold the controversial project to authorize online casinos. After several days of debate, the Minister of the Budget, Laurent Saint-Martin, announced the withdrawal of an amendment initially planned in the 2025 budget project that would have paved the way for the legalization of online casinos in France. A measure that had provoked strong reactions from many stakeholders, including physical casinos, local elected officials and public health protection associations.

A decision in the face of growing opposition

The announcement was made by Laurent Saint-Martin on Radio J, where he explained that the government had heard the criticism.

“There was talk of the government submitting an amendment. This is no longer the case. I believe that we must first work among ourselves.”

Laurent Saint-Martin, Minister of the Budget

The minister also indicates that the lack of consultation justified this withdrawal.

Initially filed on Saturday, October 19, the amendment would have authorized online casinos by decree and defined a taxation framework for these new players. If the government had chosen to push this reform, France would have ended one of the most restrictive regulations in the European Union in the field of online gambling. Currently, only sports betting, horse racing betting and poker are authorized online and strictly regulated in France, which remains, along with Cyprus, one of the few European countries banning online casinos.

Physical casinos on the front line against the measure

Physical gaming establishments, which feared a massive drop in their attendance and turnover, expressed their relief following the announcement of the withdrawal of the amendment. According to Grégory Rabuel, President of Casinos de France and CEO of the Barrière group, the authorization of online casinos could have led to “catastrophic consequences” for the land-based casino industry.

“Opening up online casinos to competition will lead to a 20 to 30% drop in gross gaming revenue for land-based casinos, and the closure of 30% of establishments.”

Grégory Rabuel, President of Casinos de France, in an interview for Les Échos.

This project, according to him, risked precipitating thousands of jobs into precariousness. Indeed, estimates put forward by casino representatives predict up to 15,000 job losses if online casinos were legalized without rigorous consultation with stakeholders. This concern has not gone unnoticed, as many local elected officials share this alarmist vision. 

Local elected officials approve

In addition to the voices of the sector, the withdrawal of the amendment was applauded by more than a hundred mayors who had mobilized to express their concerns. These elected officials, mainly from municipalities with physical casinos, had signed a platform addressed to the government, highlighting the economic and social dangers of such legalization. They estimated that the authorization of online casinos could lead to the disappearance of a third of French casinos, directly threatening the local economy and the tax revenues of municipalities.

The mayors recalled that casinos often play a major role in the economic activity of certain cities, generating tax revenues that are used to finance local public services.

“I understand that there is a need for new tax revenues, but this is a false good idea.”

Philippe Bon, general delegate of Casinos de France, in an interview with Le Figaro.

Risk of addiction

Opposition to the project was not limited to local elected officials and physical casinos. The Addiction Federation, a public health protection organization, also sounded the alarm, citing the risks of addiction associated with online gambling. The federation stressed that online casinos, due to their increased accessibility and interactive nature, are considered among the most addictive games. It insisted on the need to supervise these practices with strict regulation, in the interest of public health.

Necessary consultation

Laurent Saint-Martin indicated that the government did not intend to definitively abandon the idea of ​​legalizing online casinos, but insisted on the importance of consultation before proposing such a reform.

“I am very vigilant on this subject. We must not make mistakes. This must not penalize a certain number of players, particularly physical casinos.”

Laurent Saint-Martin

He added that any decision should be preceded by an in-depth dialogue with the ministers and stakeholders concerned.

He also left the door open for a possible resumption of discussions in the future. Asked about a postponement of the measure until next year, the minister simply replied: “we’ll see”. However, he specified that if this legalization were to be reintroduced, it would be within a strictly controlled framework to guarantee adequate taxation and control of addiction phenomena.

Contrasting reactions in the industry

The withdrawal decision was positively received by physical casinos, but it was met with frustration by the French Online Gaming Association (AFJEL). This organization, which brings together online gaming operators, said it “acknowledged” the government’s decision, while calling on it not to postpone the debate on the regulation of online casinos indefinitely.

“There is a solution to be imagined collectively, which would allow all the protagonists (land-based casinos, licensed operators, elected officials, etc.) to build a winning model for all, while ensuring better protection for players and providing new tax and social revenues for the community.”

AFJEL in a press release. 

The suspension of the project to authorize online casinos in France demonstrates political caution in the face of the economic, social and public health issues related to this industry. The government, by backing down for the moment, seems to have heard the concerns of local stakeholders and health associations, while indicating its willingness to continue discussions. While the authorization of online casinos could open up interesting tax prospects for France, the need for balanced regulation and consensus between stakeholders remains crucial.