France faces economic crossroads over online gambling legalisation

Legalising online gambling in France pits tax revenue ambitions against bookies’ warnings of closures and economic fallout

France is one of just two EU countries, alongside Cyprus, that continues to ban online gambling.

However, an estimated three million French residents played on offshore gambling sites in 2023, according to the Autorité Nationale des Jeux (ANJ).

The government claims authorisation could generate €1billion annually in taxes while improving oversight of gambling addiction.

Traditional casino operators disagree.

The trade body Casinos de France predicts that legalising online casinos would cut their revenues by 20%-30%, forcing up to one-third of the country’s 200 casinos to shut down.

This would lead to an estimated 15,000 job losses and a significant drop in tax contributions from physical establishments.

France’s 200 casinos have long been restricted to tourist towns, stemming from historical regulations designed to shield urban workers from vice.

Only in 1988 did a law allow casinos in larger, non-tourist cities.

Today, casino profits contribute €2.7billion to France’s annual €13.4billion gambling revenue, a significant portion of which goes to taxes.

Online gambling is already allowed in France in limited forms.

The national lottery (Loto) and the Pari Mutuel Urbain (PMU) offer online betting, generating billions.

In 2023, the Loto drew €21billion in bets, with €14.5billion returned to players and €4.2billion absorbed by tax contributions.

Similarly, the PMU contributed 20.2% of its €800million profit to the state.

Despite government interest in fast-tracking the legalisation of online casinos, strong opposition has led to delays. Critics argue the measure would worsen addiction rates and destabilise a regulated sector.

While the debate rages on, France faces a stark decision: embrace potential economic gains or preserve its traditional gambling structure.

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