France Considers Legalizing Online Casinos to Tackle Budget Deficit

In a bid to combat illegal gambling and generate additional tax revenue, France is now considering lifting the ban on online casino games.

The proposal, introduced as part of the 2025 draft budget, was discussed in the National Assembly on Monday. If approved, online casinos will face a 55.6% tax on their turnover.

A 2023 study by France’s gaming regulator, ANJ, estimated illegal gambling revenues between €748 million and €1.5 billion, highlighting the financial potential of legalizing the industry.

At present France has some of the strictest online gambling regulations in Europe. Unlike most EU countries, France has outlawed online casino games like blackjack, roulette, and slot machines. However, sports betting, horse racing, poker, and the state-run lottery, La Française des Jeux (FDJ), remain legal.

The French government believes legalizing online casinos could curb illegal operations based in tax havens, potentially reducing public health risks for gambling addicts.

However, the proposed legislation is raising concerns among land-based casino operators. Grégory Rabuel, president of the Casinos de France union said:

“According to our calculations, opening up online casinos to competition will lead to a drop in the gross gaming revenue of land-based casinos of around 20 to 30%, and the closure of 30% of establishments.

If the online casino market were to open up one day in France, it would have to be done exclusively with the help of physical casinos. It is a question of responsibility, security and the defence of local areas.”

ANJ spokesperson Elsa Trochet-Macé acknowledged the challenges, stating:

“This is a complex question insofar as the online casino offer is particularly addictive. Nor is it certain that the opening of this new offer will automatically dry up the illegal offer. Finally, we must be careful not to weaken our network of more than 200 land-based casinos.”

The latest gambling statistics for France show that the casino industry generated €2.7 billion in revenues across 2023, an 8.1% increase from the previous year.

The Budget Deficit Crisis

France’s public deficit reached 5.5% of GDP last year, surpassing EU targets. Budget Minister Laurent Saint-Martin indicated the deficit could exceed 6% this year. With declining tax revenues, the government is seeking new income sources, including from the regulated online casino market.

Natasha Lyndon

Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.