France is preparing to explore the possibility of regulating online casinos by launching working groups in January. These groups will examine the social, economic, and regulatory aspects of iGaming, addressing concerns ranging from consumer protection to public health. The discussions aim to find a path forward while tackling the country’s €1.5 billion to €2 billion illegal online gambling market.
The debate around online casinos pits traditional land-based operators against online gambling companies. Land-based casinos, represented by Casinos de France (CdF), are advocating for exclusive rights to operate online casinos for three to five years. This exclusivity, they argue, would protect their physical establishments and offer a controlled transition to digital services.
On the other hand, online operators, represented by the trade group AFJEL, prefer an open market. They believe competition will foster innovation and growth, benefiting both players and the economy. The government recognizes the sector’s potential, estimating it could generate €1 billion in tax revenue annually. However, it must balance the competing interests of these stakeholders.
A proposed solution involves online operators managing the digital services of land-based casinos, creating a hybrid model. While this approach could merge the strengths of both sectors, it raises concerns. CdF, for instance, has called for restrictions to prevent online groups from acquiring physical casinos to gain licenses. There’s also worry that online platforms could draw revenue away from physical casinos, leading to financial instability in the land-based sector.
Française des Jeux (FDJ), a major player in France’s gambling industry, adds complexity to the discussions. FDJ’s acquisition of Kindred Group has aligned it with AFJEL, giving the online operator lobby stronger backing. However, FDJ’s mixed stance on online casino regulation has sparked skepticism among traditional operators.
CdF has emphasized its role in supporting local communities through tax contributions, totaling €1.5 billion annually. In contrast, FDJ pays approximately €4.5 billion in taxes. With MPs and mayors supporting CdF’s position, the debate highlights the competing priorities of economic impact and market fairness.
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