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A government-backed to France’s 2025 budgetwould legalise online casinos and tax them at 55.6 percent of revenue, in a move that has enraged land-based casino operators.
Weeks ago, whispers of tax increases across the board for gambling caused similar consternation, but failed to make an appearance in the final proposed Budget bill, although it is thought they will reappear later as amendments.
France, still in the midst of financial woes, needs to raise funds and has now turned to online casinos to do the job.
Amendment I-3638, dated October 19, states “a levy on the gross gaming product (GGP) of online casinos is thus planned at 27.8% for the State levy and the same levy will be provided for in the PLFSS 2025 for social security. Online casino games will thus be taxed at 55.6% of the GGP, i.e. at the same level as the general category of online lottery games.”
If the amendment passes, it would make it the highest gross gambling tax in the world.
The amendment is vague about the exact nature of how online casinos will be regulated, leaving the specifics up to a future ordinance.
If passed, it would "authorise the operation of online casino games by opening the market to competition", but does not indicate how many licences would be available.
This detail, along with technical regulations and strengthened responsible gambling requirements, must be legislated for within six months of the budget passing, the amendment says.
Land-based casinos are already voicing their extreme displeasure. Grégory Rabuel, the president of Casinos de France, said in a local interview that the measure “amounts to signing the death warrant for land-based casinos”. He also demanded that land-based casinos be the only operators allowed to have online brands.
Rabuel warned that “smaller casinos would not be able to withstand the arrival of online gaming”.
The amendment maintains that France is simply joining the rest of Europe by allowing online casinos. “This opening is the result of aligning the gaming framework with our main European neighbours, France being, along with Cyprus, the only country in the European Union to ban online casino gaming.”
It cites the study by the National Gaming Authority (ANJ) at the end of 2023, which reported that illegal online gambling in France generated between €748m and €1.5bn, half of that coming from online casino games.
The amendment also includes in its text the justification of player protection: “While one in two consumers of illegal offers are unaware of their illicit nature, playing these games is not without risk: there is no approval of the games used, making cheating possible, winnings may not be paid, minors are not protected, bets are not supervised and the theft of personal data is frequent.”
The amendment was preceded by the news at the beginning of October that France’s lottery operatory La Française des Jeux (FDJ) will acquire Kindred Group. Kindred is an online gambling operator that has nine online brands which offer online poker, online bingo, sports betting and online casino. Rabuel, as part of his complaint, questioned the timing of the acquisition.
The FDJ did not return request for comment as of publication. The amendment's progress is dependent on its processing by the National Assembly and its admissibility.
