Legalisation
The French government looks set to legalise online casinos in the country for the first time as it seeks to raise public funds from taxes on the industry.
This move was announced as an amendment to the Draft Finance Bill 2025, the country’s budget.
Cutting The Deficit
French Prime Minister Michael Barnier has made it his mission statement to cut the country’s budget deficit to below 5% of GDP during his first term as PM. The Les Republicans leader was voted into power over the summer following a hotly-contested election in the country.
This new amendment will now be discussed in the French parliament and, if passed, could see iGaming operators in the country taxed at 55.6% of their revenue. This would immediately make it one of the most heavily taxed countries for casinos in Europe.
The tax would comprise a 27.8% GGR tax alongside further social security contributions. The government believes this will be able to raise significant funds within the country, with online casinos being popular among French players, despite not being legal.
Tackling The Black Market
Barnier’s government also believes that by legalising online casinos in France, the country will be able to tackle the ever-present black market within the country. Currently, France and Cyprus are the only EU countries that do not allow online casinos to operate.
As such, French players have become increasingly drawn into playing at illegal casinos. It is estimated by the National Gambling Authority that between €748m and €1.5bn was generated by illegal operators in 2023. The government believes that online casinos accounted for around 50% of this.
As with all gambling-related legislation, there has been some pushback from within France surrounding the issues. Brick-and-mortar casinos in the country have pushed back against the proposal, stating that it will damage their profits.
There were also proposals last year to launch a fully regulated market in France within five years. However, this met several political roadblocks and was quickly put on the shelf with the election announcement.
