France intends to grant legal status to online gambling platforms by the upcoming year.
Based on various sources, France is on the brink of legalizing online casinos in 2022. This proposal will be discussed in parliament soon. If approved, France will join the majority of EU countries, leaving Cyprus as the sole nation where online casinos remain unlawful.
Is Online Gambling in France a 2022 Reality?
As reported by France24 and others, online gambling in France might become legal, potentially as early as next year. The government has included an amendment to the 2022 budget plan, which will be debated in parliament next week. The purpose of the new legislation is to control the burgeoning black market, suppress illegal services, and protect vulnerable individuals and public health.
Today, a majority of French citizens support legalization. The advantages are threefold: increased player safety, reduced money laundering, fraud, and data theft, and substantial tax revenue for the state."Nicolas Beraud", President of the French Association of Online Games and CEO of Betclic, Le Figaro*
The primary driver for this change is the estimated annual tax revenue of around 1 billion EUR. The plan is to levy a tax rate of 55.6% on gross gaming revenue. Unlawful online casino games in France are believed to generate up to 1.5 billion EUR in gross gaming revenue. According to a PwC study [Link in French], between 3 and 4 million people in France have gambled on illegal websites, with roughly half of users unaware that they are using illegal platforms.
Divergent Opinions on Potential Legalization
France's land-based casinos are reportedly displeased with the legalization plans, fearing a downturn in revenue and job losses. Gregory Rabuel, chairman of the French Casino Association, predicts a 30% closure of establishments and up to 15,000 job losses. Supporters of legalization argue that online casinos already exist in an illegal format, and the legal casino market is still thriving.
Le Figaro [Link in French] reports that French citizens are more favorable towards legalization, with 62% supporting it. 93% are at least open to a more regulated and secure online gaming environment.
France as a Latecomer in the EU
By legalizing online casinos, France would be aligning with a European trend. While online betting was legalized in France before the 2010 FIFA World Cup, online casinos have remained prohibited due to their high addiction potential. Poker is an exception, as French courts regard it as more a skill-based game than a game of luck.
Illegal Gambling in France Remains a Growing Concern, According to PwC Report
Despite strict regulation by the Autorité Nationale des Jeux (ANJ), illegal gambling in France remains a significant problem, as per the PwC report. Particularly, online casino games dominate the illegal market, given their official ban in France. These offers, often operated by providers from countries with favorable tax models like Cyprus and Malta, are easily accessible and attract millions of users.
While the ANJ has intensified its efforts against these illegal offers in recent years, the fight remains challenging due to the constant emergence of mirror sites, or sites that reappear with new URLs after being blocked. Over 1,200 illegal websites offer gambling services like online casinos, slot machines, and roulette in France.
- Around 65% of illegal offers are online casino games, which dominate the market.
- Most operators are based in Curacao, Malta, the United Kingdom, and Cyprus.
- Between 3% and 5% of the total gambling traffic in France is generated by illegal websites.
- Approximately 8% of French adults have used illegal gambling services in the last 12 months.
- The user profile: 62% men, predominantly under 35 years old.
- Since 2022, the ANJ has blocked over 2,365 URLs, but "mirror sites" quickly resurface.
If legalized in France, Cyprus would be the only remaining EU member state where online casinos remain illegal. No plans for legalization have been reported in Cyprus, although physical casinos are permitted there.
In line with this discussion, France24 also reported that the legalization of online gambling in France is a possibility for 2022, aiming to control the black market and protect vulnerable individuals and public health. The proposed legislation could generate an estimated annual tax revenue of around 1 billion EUR.
Furthermore, a PwC study suggests that between 3 to 4 million people in France have gambled on illegal websites, with half of users unaware of the illegality of these platforms. With France's decision, Cyprus would be the only EU member state where online casinos remain illegal.
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