The French government introduced an amendment over the weekend to regulate online casino and has set in motion the process that could see France become a regulated iCasino market, but the regulatory format that has been outlined has led the country\u2019s land-based casinos to say that it is \u201ctantamount to signing their death warrant\u201d.<\/p>\n\n\n\n
The amendment paves the way for the legalisation of the vertical, which stakeholders have been calling for for many years, and, if passed, would see France become the last major western European market to host a legal and licensed online casino sector.<\/p>\n\n\n\n
With new Prime Minister Michel Barnier<\/strong> seeking to raise revenues to address the country\u2019s debt levels, which currently stand at 112% of its gross domestic product while its public deficit is at 5.5% of GDP and nearly double the 3% level imposed on EU Member States, the amendment will be debated as part of the country\u2019s 2025 budget in the coming months. If passed, there could be regulated online casino in France by the middle of next year.<\/p>\n\n\n\n GGR tax and open competition <\/strong><\/p>\n\n\n\n The amendment states that a levy on online casinos\u2019 gross gaming revenues of 27,8% will be introduced as part of the measures, but, with the government also looking to increase taxes on all of the country\u2019s gambling verticals as part of a drive to raise \u20ac500m for the country\u2019s social security coffers, tax levels on regulated iCasino would reach 55.6% of operators\u2019 GGR, the same overall tax level that applies to lottery products.<\/p>\n\n\n\n Importantly, the document also states that the purpose of \u201cthe amendment is to authorise and open up the online casino gaming market to competition by defining the tax framework applicable to this type of gaming\u201d, meaning a market open to operators of all types as long as they meet compliance and licensing requirements.<\/p>\n\n\n\n This outline has already been strongly criticised by Casinos de France, the trade body representing the country\u2019s 200 land-based casinos. Reacting to the amendment, Gr\u00e9gory Rabuel,<\/strong> President of CdF and CEO of Barri\u00e8re Groupe, told Les Echos <\/em>that the move was \u201ca totally ill-considered decision, without any consultation with stakeholders\u201d.<\/p>\n\n\n\n Recall, as part of its JADE proposal, CdF called for physical casinos to be allowed to operate digital casinos during an initial three-year exclusivity period.<\/p>\n\n\n\n \u201cOpening up online casinos to competition will lead to a 20-30% drop in GGR for land-based casinos and the closure of 30% of establishments,\u201d added Rabuel. \u201cThis will have catastrophic consequences, particularly in social terms: it is estimated that 15,000 jobs will be lost. More generally, this is tantamount to signing the death warrant for land-based casinos.\u201d<\/p>\n\n\n\n The government\u2019s text said the lack of regulated online casino had led to the \u201cdevelopment of a significant illegal offer in recent years\u201d estimated to be worth between \u20ac748m and \u20ac1.5bn, while government sources have estimated that the tax revenues generated by iCasino regulation could reach \u20ac1bn.<\/p>\n\n\n\n However, in his interview with Les Echos, CdF President Rabuel said the measures will lead to the government losing around \u20ac450m in tax revenues from the country\u2019s physical casinos, with the smallest communes most badly hit. He called for French MPs and senators to reject the amendment and renewed his call for land-based casinos to be granted exclusive right to operate online casinos.<\/p>\n\n\n\n The vertical being regulated according to the framework set out by the government would represent a major win for France\u2019s online operators such as Betclic, Winamax<\/strong> and Fran\u00e7aise des Jeux<\/strong>, which now includes Kindred Group\u2019s Unibet sportsbook along with its 32Red and Maria Casino brands, which have called for an open market environment for many years.<\/p>\n\n\n\n The speed at which the amendment has been introduced has caused some surprise, but, in common with other European economies, France is looking to raise revenues and cut costs, while Prime Minister Barnier gained some experience of dealing with gambling-related issues in his role as European Commissioner and then Vice-President in charge of Internal Market and Services from 2010 to 2014.<\/p>\n\n\n\n