The French government has withdrawn “proposed amendments” to the 2025 budget to pass laws and launch the online casino market.
The decision was announced on Sunday by Budget Minister Laurent Saint-Martin, who said more consultation was needed to avoid the negative impact and job losses that stakeholders had warned about.
“There was talk that the government would make an amendment. That’s no longer the case. I believe we need to work with each other first
I am very vigilant on this issue. We must not make mistakes. We must ensure that this does not harm certain stakeholders, especially land-based casinos,” the minister told Radio J over the weekend.
This would see France retain its 2010 gambling laws, maintaining a fragmented market that regulates sports betting, horse racing and poker, but bans online casinos.
The withdrawal of the amendments comes after Prime Minister Michel Barnier allowed an amendment to the online casino legislation to be included as part of efforts to reduce the national debt and raise taxes by €500 million. The amendment was intended to introduce a direct tax on gross gaming revenue (GGR) of 27.8% for online casinos, combined with federal business rates, bringing the tax rate on online casino activities to 55%.
The proposal was immediately challenged by French mayors and Casinos de France, an industry body representing France’s 200 land-based casinos.
The backlash saw “some 130 French mayors publish an article in Le Figaro yesterday declaring their opposition to the measure. They said it was like ‘opening Pandora’s box’ and would have the opposite effect to the government’s budgetary target to raise funds.”
In support of regional casinos, French mayors are seeking assurances that online casinos cannot be exempted from social duties and tax obligations imposed on physical casinos, which would give them a significant advantage.
The government is being urged to adopt the “Casinos de France model”, which proposes to structure the regulated online casino market in a similar way to the country’s existing land-based casinos.
Minister Saint-Laurent noted that the government recognises France’s unique position as the only EU member state, with the exception of Cyprus, that has not legalised online casinos.
Despite the delay, the government retains the power to review online casino laws, with potential future measures focusing on tax revenue, land-based protection and harm reduction.
“We are pleased that the government has listened to our concerns. We remain vigilant to ensure that the commitment made by the budget minister is honoured: any future legislative or regulatory changes must take place within the framework of consultation and constructive dialogue,” Casinos de France President Grégory Rabuel said in a statement.
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