The French government is progressing toward legalizing online casinos as part of its 2025 draft budget, with the primary goals of generating additional revenue and curbing illegal gambling activity. With an estimated annual deficit approaching 6% of GDP—double the EU’s 3% target—France aims to use regulated online gaming to bolster state finances. By bringing the black market, currently valued at €748 million to €1.5 billion, under control, the government hopes to raise substantial tax revenue. A proposed 55.6% tax rate on gross gaming revenue from online casinos could yield hundreds of millions annually for the budget.
The legalization of online casinos is also seen as a strategy to tackle the country’s growing illegal gambling market. The national gambling regulator, l’Autorité Nationale des Jeux (ANJ), has reported an increase in gambling without consumer protections on unregulated platforms, which are often linked to addiction risks. Legalization would enable the implementation of safeguards, such as monitoring and addiction prevention measures, aimed at creating a safer, regulated online gambling environment.
While the proposed legislation promises to capture revenue from previously untaxed sources, it has drawn criticism from France’s land-based casinos. Industry leaders warn that legalizing online casinos could lead to a 20-30% drop in revenue for traditional casinos, risking closures and job losses across the sector. To mitigate this impact, the government has suggested partnerships between physical casinos and online operators, potentially allowing for a more integrated gambling framework.
This proposal highlights France's push to modernize its gambling landscape, aligning with broader European trends and addressing both financial and regulatory challenges in the process.
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