EMEA
French Government to Hold Public Consultation
The French Government has announced a public consultation with key gambling operators to discuss the framework for online casino regulation, following its recent decision to delay legalization plans. This consultation, involving leading local operators and industry stakeholders, aims to gather input on how best to regulate the online casino market. The move marks a cautious step by France’s government as it balances economic gains with concerns raised by land-based casinos and the public.
France Postpones Online Casino Legalization, Sets Public Consultation
After initially announcing plans to legalize online casinos by 2025, the French Government has postponed the legislation, citing the need for further refinement. Laurent Saint-Martin, the Minister of Budget and Public Accounts, made the announcement this weekend on Radio J, stating that additional consultation with industry stakeholders would be necessary before moving forward.
Key Points:
- French Government delays online casino regulation, schedules public consultation with gambling operators.
- Key industry stakeholders, including leading operators, to participate in shaping the framework.
- Concerns over the proposed 55.6% tax rate and impact on land-based casinos remain central to discussions.
The consultation, set for next week, underscores France’s careful approach to regulating online gambling. According to reports, this meeting will include major French operators and members of the European Gaming and Betting Association (EGBA), which has long advocated for regulated online gambling in France. Last year, the EGBA highlighted the significant revenue generated by the black market, estimated at €1.5 billion annually, as a strong case for regulation. By legalizing online casino operations, the government hopes to address this black-market presence and enhance consumer protections.
Industry Response and Regulatory Concerns
The initial regulatory proposal included a 55.6% tax rate on gross gaming revenue for online casinos, a figure that has drawn criticism from land-based casino operators. They argue that such a tax rate could stifle competition, particularly for traditional casino venues, which have historically been the primary gambling providers in France. Many land-based operators express concerns about the regulatory and competitive shifts that online legalization could bring, especially if not implemented with fair industry considerations.
France remains one of the few European Union nations, along with Cyprus, that has yet to legalize online casino gambling. As such, the French black market has flourished, creating unregulated online gaming channels that lack consumer protections. For the government, moving toward a regulated market is seen as a way to bring this revenue under control and secure tax income, while also protecting French players from unregulated online platforms.
Next Steps in the Online Casino Legislation Process
The French Government’s decision to engage in this public consultation reflects a shift toward more inclusive policymaking. By involving local operators and industry stakeholders, the government is positioning itself to address concerns head-on and establish a comprehensive regulatory framework that can serve both economic and social interests. The feedback collected will likely influence revisions to the tax structure, regulatory guidelines, and compliance measures necessary for a viable online casino market.
Laurent Saint-Martin’s statements hint that the government is not rushing the process and is instead looking to create a balanced and sustainable regulatory environment. The consultation is an opportunity for operators to voice their perspectives on tax rates, player protections, and responsible gaming protocols, potentially leading to refinements in the proposed legislation.
With its planned public consultation, the French Government is taking a measured approach to online casino regulation, aiming to create a fair, effective framework that benefits both operators and players. By delaying the legislation and seeking input from key stakeholders, France demonstrates its commitment to a responsible gambling environment while considering the economic impact on traditional casinos. As this consultation unfolds, the insights gathered will shape the future of France’s online casino market, bringing it closer to a regulated landscape that aligns with both industry and consumer needs.