Towards the legalisation of online casinos in France

Written By

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Alexandre Vuchot

Partner
France

I'm a partner in our international Commercial group, based in Paris, where I provide our clients with strategic commercial advice.

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Sacha Bettach

Senior Associate
France

As a senior associate in our Paris IT, commercial and dispute resolution teams, and a member of the Paris Bar, I advise our clients on both contentious and non-contentious matters.

This Autum, the French government is unexpectedly considering authorising online casinos, a decision that is already proving highly controversial. The initiative, included in the draft 2025 budget, would generate substantial tax revenue for the state, estimated at between €750 million and €1 billion a year, and improve control over a flourishing black market.

As a reminder, the situation for casinos in France is paradoxical: physical casinos have been authorised and regulated for decades, while online casinos are prohibited. There are historical, economic and public health reasons for this (online gambling is more addictive than traditional gambling).

Physical casinos therefore fear that legalisation will pose a serious threat to their business, leading to closures and job losses. The National Gaming Authority also fears an increased risk of addiction, particularly among young people.

The government justifies this measure on several grounds:

  • Tax revenue: Regulating online casinos could make a significant contribution to public finances.
  • Controlling the illegal market: Faced with the expansion of illegal casino games, regulation would protect players while drying up the unregulated supply.
  • European alignment: France, isolated by its ban, could benefit from a competitive and attractive market.

Faced with the concerns of the Casinos de France union, proposals have emerged such as restricting access to online casinos to physical operators only, in order to minimise the impact on their business.

The next key date is November 19, 2024, when the National Assembly will hold a formal vote on the 2025 budget, unless a vote is made earlier if the government decides to skip the parliamentary discussions at the risk of being overturned.  Once approved, the bill will be sent to the Senate for further review. The Senate’s primary role being to safeguard the interests of regions, we expect the representative of the regions mostly affected by the proposed measures (sea and thermal resorts in particular) to challenge this initiative.

The legislative process, known as the "parliamentary shuttle" between the two chambers, is expected to conclude by December 21, 2024, the constitutional deadline for adopting the budget. In case of ongoing disagreements, the National Assembly will have the final say. Until then, we wait and see. 

Yet, it is interesting to note that this is the first time that a proposal to open up online casinos has been brought up for public debate by the government and not by individual MPs. 

Although it is still very uncertain, it has never been so close to succeeding since a taboo has been lifted.

Place your bet ! 

Update as of October 28, 2024:

Less than a week after the initial announcement, the government has backtracked and decided to remove from the 2025 draft budget the amendment regarding the proposed authorisation of online casinos, primarily to avoid disadvantaging physical casinos.

A consultation process with various market stakeholders will be initiated to address the rise in illegal gambling, which remains insufficiently regulated in France.

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