France Considers Legalizing Online Casinos to Tackle Illegal Gambling Market

The French government is revisiting the issue of online casino legalization in an effort to combat the country’s large illegal gambling market. France, along with Cyprus, remains one of the few European Union countries that still bans online casinos. However, the illegal gambling sector is growing rapidly, with an estimated 4 million French players involved in 2023, prompting policymakers to reconsider the ban.

Push for Legalization Gaining Traction: An amendment proposing the legalization of online casinos has been introduced as part of the 2025 budget. Advocates, including L’Association Française du Jeu en Ligne (AFJEL), argue that a regulated framework is necessary to address fraud, protect players, and capture the approximately €1.5 billion generated annually by illegal gambling. Legalizing online casinos could also generate €1 billion annually in tax revenues for France.

Despite these arguments, land-based casinos in France oppose the move. The trade body Casinos de France warns that legal online casinos could lead to a 20–30% revenue loss for physical casinos, potentially causing the closure of a third of the country’s establishments and the loss of 15,000 jobs. This opposition has led the government to approach the issue carefully, delaying the proposal for further consultation and setting up working groups to explore the economic, health, and security implications.

Economic and Consumer Protection Considerations: Supporters of online casino legalization emphasize the benefits of consumer protection, including the ability to monitor players for signs of gambling addiction and implement safeguards to reduce harm. Furthermore, legalization would introduce a 55.6% tax on online casino revenues, providing additional funding for public services.

Legalizing online gambling would also help combat fraud and money laundering, bringing illegal funds into the legal economy. France’s illegal gambling market represents a significant portion of the sector’s income, and regulating online casinos would improve oversight and transparency.

The Impact of Legalization on the Gambling Landscape: While France has made significant strides in regulating some forms of gambling, such as sports betting and poker, the online casino market remains untapped. Legalization could further strengthen the gambling industry, offering a more secure and transparent environment for both players and regulators.

However, if the minimum RTP (Return to Player) for French online casinos is set too low, it could discourage players from participating in legal platforms. If casinos intentionally reduce RTP to levels significantly lower than those offered by illegal operators, players may continue flocking to unregulated sites, ultimately undermining the effectiveness of the legal framework. In this case, a balance must be struck between regulation and fairness, with a minimum RTP of 95% ensuring that players are incentivized to choose legal platforms over illegal ones.

The future of online casinos in France depends on whether regulators can create a framework that balances the needs of the industry with the protection of consumers. If this balance is achieved, it could mark a major step in the fight against illegal gambling, bringing billions of euros into the legal economy.