France is moving closer to legalizing online casinos, with Prime Minister Michel Barnier’s government introducing a proposal as part of the country’s 2025 budget plan. The move is aimed at addressing the growing illegal gambling market and boosting government revenue through taxation.

If approved, the new regulation would see online gaming operations taxed at 55.6% of their turnover.

The proposal is also seen as a response to the expansion of illegal gambling in France. According to estimates from the National Gambling Authority (ANJ), illegal online gambling is currently valued between €748 million ($806.28 million) and €1.5 billion ($1.62 billion). Legalizing and regulating online casinos could help curb this activity while providing an estimated €1 billion ($1.08 billion) in tax revenue to the state. 

France’s current regulations are among the strictest in Europe, banning all online casino games like blackjack and roulette, although sports betting and poker are allowed. With the rise of illegal gambling platforms, the government is facing pressure to create a legal framework for online casinos. Support for the proposal has come from several online operators, including Betclic, Winamax, and Unibet, who are eager to expand their presence in the regulated market.

However, the proposal has been met with resistance from the country’s land-based casino industry. Grégory Rabuel, President of the Casinos de France trade body and CEO of Barrière Groupe, voiced strong opposition, warning that legalizing online casinos could lead to a 20-30% drop in gross gaming revenue for traditional casinos.

He also predicted the closure of up to 30% of physical casinos, potentially resulting in 15,000 job losses. Rabuel and the Casinos de France have proposed a three-year exclusivity period for physical casinos to operate online platforms before opening the market to broader competition.

Despite these concerns, the government insists that regulating online casinos is essential for combating illegal operations. Officials have pointed to the rapid growth of the black market, which is siphoning revenue away from legal operators. They also argue that legalizing online casinos would offer greater protections for consumers, particularly in terms of preventing addiction and curbing the financial risks associated with unregulated gambling platforms.

The proposal is now under debate as part of France’s budget discussions, with final decisions expected by the end of the year. If passed, the plan would bring the country more in line with its European neighbors while addressing both economic and regulatory challenges.