The new focus comes amid intense pressure on the government to reconsider online casinos
France is taking steps to explore the potential regulation of online casinos through the establishment of working groups in January. These groups will evaluate key aspects, including public health concerns, consumer protection, and the economic implications for physical casinos. The goal is to find a balance that satisfies diverse stakeholders while addressing the €1.5 billion to €2 billion (US$1.5 billion – US$2.11 billion) illegal online gambling market.
Land-based casinos, represented by Casinos de France (CdF), seek exclusive rights to operate online casinos for three to five years. Meanwhile, online operators, represented by the trade group AFJEL, favor an open market to foster competition. The government sees the sector as a significant revenue source, potentially generating €1 billion (US$1.5 billion) in tax income. However, compromises will be needed to harmonize these differing interests.
A potential hybrid model could involve online operators managing the digital services of land-based casinos, but this idea raises concerns. CdF has also proposed restrictions preventing online groups from acquiring physical casinos to gain licenses. The debate extends to fears that online platforms might cannibalize revenues from physical establishments, a contentious point among stakeholders.
The involvement of influential players like Française des Jeux (FDJ), now aligned with AFJEL through its acquisition of Kindred Group, adds complexity. FDJ’s strong lobbying power could shift dynamics, though its criticism of online casino regulation has drawn skepticism. CdF, backed by supportive MPs and mayors, emphasizes its significant tax contributions, totaling €1.5 billion (US$1.5 billion) annually, compared to FDJ’s €4.5 billion (US$4.75 billion).
The government’s openness to these discussions marks a departure from previous policies, signaling a willingness to engage with all parties. The outcome will depend on finding common ground, with a focus on curbing illegal gambling and creating a sustainable online casino framework.
