The French government was mulling over the legalization of iGaming. However, lawmakers have now taken a stake back amid certain economic concerns.
France Drops Its iGaming Plans, for Now
Last week, reports said that PM Michel Barnier’s government was seeking to regulate the iGaming sector in hopes of gaining the upper hand in the war on illegal gambling. France, for context, is the only EU member state, other than Cyprus, that still prohibits iGaming.
Proponents also argued that the legalization would generate additional tax revenue for the government, increasing its capacity to tackle important projects. According to estimates, iGaming could have generated as much as €500 million a year in taxes.
For context, France continues to struggle to channel players toward legal gaming and betting operators. As a result, customers’ money has been leaking into shadier online gambling sites, prompting lawmakers to consider a legal alternative.
Despite the aforementioned considerations, industry stakeholders and French mayors warned that legal iGaming could impact the economic stability of the land-based sector, leading to potential job cuts.
As a result, Laurent Saint-Martin, France’s Minister Delegate for the Budget and Public Accounts, confirmed that the country is no longer considering the legalization of iGaming, at least for now. This means that the proposed amendment will not be a part of the 2025 Budget.
Saint-Martin spoke on the matter, saying that his team is wary of making mistakes and does not wish to harm industry stakeholders, such as land-based casino operators.
A Temporary Relief for the Land-Based Sector
If France does end up legalizing online gambling in the future, French mayors requested assurances that such businesses will not be exempted from the social duties and taxes land-based casinos pay. Local governments noted that such exemption could greatly hurt the brick-and-mortar sector and provide online operators with significant advantages.
Additionally, experts advised the government to regulate and structure the potential online sector similarly to the land-based sector.
In any case, the decision to postpone the legalization was a relief to the land-based sector. Representatives thanked the government for heeding its concerns. Casinos de France reiterated its commitment to engaging in constructive dialogue when it comes to potential changes to France’s gambling ecosystem.
