The French government is moving to legalize internet casinos to regulate illegal gambling and generate an additional billion euros in annual tax revenue. This decision comes amidst concerns it could threaten the land-based casino industry, risking 15,000 jobs and over 80 establishments. Current online gambling is limited to horse betting and poker, while slot machines and roulette remain offline. The government plans to impose over 50% tax on these new online games, aligning with EU standards.
For the first time in history, a government has taken the bold step of legalizing online casinos, thanks to the persuasion of Bercy and Matignon. This move follows the Conseil d’Etat’s unfavorable stance regarding a potential increase in taxes on traditional gambling. As part of the Finance Bill for 2025, an amendment pushing for this legalization was introduced on Saturday, October 19, marking fourteen years since the initial deregulation of online gambling. While the official narrative emphasizes the need to manage the surging illegal gambling sector, insiders indicate that the primary goal is to generate an additional billion euros in annual tax revenue.
Currently, French law permits only horse racing, sports betting, poker, and lottery games facilitated by La Française des Jeux on the internet. However, games like slot machines, blackjack, and roulette remain exclusive to brick-and-mortar casinos, prompting discontent among patrons. One gambler expressed concern, stating, ‘I believe it would lead to unhealthy gambling behavior online.’ Another echoed these sentiments, sharing, ‘When I win a little here, I can leave. But at home, that’s different; we often play until we lose.’
A risky move that may jeopardize physical casinos and local tax revenues
A risky move that may jeopardize physical casinos and local tax revenues
Philippe Bon, General Delegate of Casinos de France
This concern was echoed by Céline Bonnaire, a behavioral addiction expert from Paris Cité University, who warned that ‘Studies indicate that slot machines are the most addictive form of gambling because players frequently win small amounts, unlike in limited-duration games like poker.’ In a discussion on this contentious subject on Tuesday, October 22, Economy Minister Antoine Armand acknowledged the seriousness of the situation but emphasized the necessity of regulating and taxing illegal gambling sites to support ‘the national tax effort.’
Historically, no administration has taken this step out of fear that it could undermine the entire casino sector, which supports around 45,000 jobs directly and indirectly. Following the proposal’s introduction, the casino industry voiced strong opposition, predicting the loss of 15,000 jobs and the closure of 80 out of the country’s 204 casinos within a year. Philippe Bon firmly stated, ‘There was no consultation before this announcement. It was shocking to find out about it on Saturday. I understand the government’s need for new tax revenues, but this is a misguided approach that threatens physical casinos and local tax resources.’
Tax rates exceeding 50%?
In light of what they consider an unfair competitive landscape, the government plans to impose a tax exceeding 50% on online casinos. The amendment notes that ‘France, alongside Cyprus, is currently the only nation in the European Union to prohibit online casino operations.’ The amendment aims to align the gaming framework with major European counterparts. Legislative discussions began on Monday, October 21, as the fast-expanding gambling market boasts annual revenues surpassing 13 billion euros. Last year alone, three million French gamblers visited illegal sites, generating between 748 million and 1.5 billion euros—accounting for 5% to 11% of the total gambling market—without contributing any taxes to the government.