This weekend saw a significant stride in the process of the framework for online casinos in France.
Introduced by new Prime Minister Michel Barnier, the plans seek to boost the country’s GDP as it navigates economic headwinds.
Economic upside would largely be fuelled by a 27.8% levy on online casinos’ gross gaming revenue as well as an increase in taxes to 55% on the country’s whole gambling industry.
Confirmation of the mandate will likely be reached before the end of the year as debate over the bill elevates when the country formulates its 2025 budget.
Nonetheless, this has led to criticism from the land-based sector, specifically the Casinos de France, the trade body representing the country’s 200 land-based casinos.
Grégory Rabuel, President of CdF and CEO of Barrière Groupe, was damning about the bill, speaking to Les Echos, he described the move as “a totally ill-considered decision, without any consultation with stakeholders”.
As part of its JADE proposal, the CdF urged the regulatory body to allow physical casinos to have a period of three year exclusivity to operate digital casinos.
Rabuel issued the following warning: “Opening up online casinos to competition will lead to a 20-30% drop in GGR for land-based casinos and the closure of 30% of establishments. This will have catastrophic consequences, particularly in social terms: it is estimated that 15,000 jobs will be lost. More generally, this is tantamount to signing the death warrant for land-based casinos.”
Significantly, in a bid to maximise the economic benefits of the sector, the country is looking to introduce a highly competitive online gambling market that is open to all players, providing they are compliant with the framework.
The plans come following widespread support from the country’s online operators such as Betclic, Winamax and Française des Jeux, which now includes Kindred Group’s Unibet sportsbook along with its 32Red and Maria Casino brands.
Furthermore, the speed at which the bill is being pursued has surprised many commentators, however, the government underlined that the lack of regulated online casino had led to the “development of a significant illegal offer in recent years”.
In total, the surge in the black market has led to it being valued between €748m and €1.5bn, while government sources have estimated that the tax revenues generated by iCasino regulation could reach €1bn.
Recently, the ANJ launched a new information campaign about online casinos – “100% winner?” – to remind the French public about the dangers of illegal online gambling websites.
The campaign is part of the ANJ’s 2024-2026 strategic plan to tackle several objectives in the country’s gambling market, which includes combating illegal gambling.
Isabelle Falque-Pierrotin, President of the ANJ, stated on the campaign: “The illegal supply of online gambling represents between 5% and 11% of the overall gambling market in France. It is particularly harmful for the players who consume it: addiction, over-indebtedness, family problems, etc.
“This parallel market constitutes real financial support for multiple international criminal organisations. This is why the ANJ is determined to use all the levers at its disposal to stop this illegal supply.”
The regulator has also intensified its focus on uncovering the ultimate beneficial owners (UBOs) of the websites and has been in regular contact with counterparts in Curaçao, where many of the sites are licensed, as part of its efforts to reform its iGaming laws.
