The French government has withdrawn a proposed amendment to its 2025 budget that would have legalized online casinos, citing the need for further consultation. The announcement came from Budget Minister Laurent Saint-Martin, who on Sunday explained that additional discussions are required to address potential risks, including job losses and the impact on regional land-based casinos.
“There was talk that the government would submit an amendment. This is no longer the case,” Saint-Martin stated in an interview with Radio J. “I believe we need to work among ourselves first. We must ensure that [any changes] don’t harm certain stakeholders, especially land-based casinos.”
France’s existing gambling laws, enacted in 2010, restrict online gaming to sports betting, horseracing, and poker, with online casinos remaining prohibited. The government’s initial proposal for online casino legislation included a 27.8% gross gaming revenue (GGR) tax, along with additional federal business taxes, which would result in an effective tax rate of 55% on online casino revenues.
However, the proposal met swift resistance. The Casinos de France association, representing over 200 land-based casinos, and approximately 130 mayors publicly voiced their concerns, warning that legalizing online casinos could undermine regional economies and threaten jobs.
In a recent editorial published in Le Figaro, the mayors likened the legislation to “opening a Pandora’s box” and argued it could undercut the government’s goal of increasing tax revenue.
One primary concern raised by the mayors and Casinos de France is the discrepancy in social duties and tax obligations between online and physical casinos. They argue that exempting online casinos from these obligations would create an uneven playing field. The group has called for any future legislation on online gambling to follow the “Casinos de France model,” mirroring the regulatory framework applied to traditional casinos.
In response to the government’s decision, Grégory Rabuel, President of Casinos de France, issued a statement: “We are relieved that the government has heard our concerns. We remain vigilant to ensure that the commitment made by the Budget Minister is upheld: any future legislative or regulatory changes should take place within a framework of consultation and constructive dialogue.”
Although the amendment has been withdrawn, Minister Saint-Martin confirmed that the government retains a mandate to revisit online casino regulations in the future. This potential review would aim to address France’s unique status within the European Union as one of the only member states, alongside Cyprus, to prohibit online casinos.
Future discussions around online casino legislation may revisit the themes of tax generation, protections for the land-based casino sector, and responsible gambling measures. For now, however, France’s 2010 gambling laws will remain in place, preserving the current fragmented regulatory structure that excludes online casino gaming.
Original article: https://www.yogonet.com/international/noticias/2024/10/28/83433-france-withdraws-online-casino-amendment-from-2025-budget-citing-need-for-further-consultation
