France To Begin Discussions on Future of iGaming This Week

Article by : Erik Gibbs Dec 2, 2024

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France is set to begin discussions this week on the future of online casino regulation as part of a six-month consultation process. The first working group, led by the Ministry of Health, will meet today, focusing on problem gambling and measures to mitigate addiction. This marks the start of broader deliberations involving government agencies, industry stakeholders, and local representatives.

The push for regulated online casinos has sparked debate in France. Although the government announced plans earlier this year to introduce a competitive online casino market by 2025, it backtracked after receiving backlash from land-based casino operators and local authorities. Concerns range from potential harm to public health to the economic impact on physical casinos and other sectors.

The Ministry of Health, the Budget Ministry, and the Ministry of the Interior each bring different priorities to the discussions. The Health Ministry emphasizes the need to address the risks of gambling addiction, while the Budget Ministry views online casinos as a potential source of revenue to help reduce France’s debt. Meanwhile, the Ministry of the Interior, which oversees land-based casinos, holds a pivotal position in shaping the outcome.

The land-based casino industry, represented by Casinos de France (CDF), has argued for exclusive digital rights as an extension of their physical offerings. They claim this would avoid replicating the sports betting market, where a few dominant brands control the majority of business. Their concerns have gained support from local mayors and the horse racing industry, which fears that online casino competition could harm their revenue streams.

Surprisingly, Française des Jeux (FDJ), a major player in France’s gambling sector, has also raised objections. Despite its acquisition of the Swedish online operator Kindred, FDJ warns that online casino games pose a heightened risk of addiction. It may also fear that the new market could cannibalize its existing lottery and sports betting revenues.

On the other side of the debate, the online gambling operator association AFJEL has highlighted the need to regulate the growing unlicensed online casino market. They have suggested creating a compensation fund to benefit local communities, although skepticism remains about its feasibility.

The consultation process will unfold in two phases. The first three months will address whether France should regulate online casinos at all. The following three months will focus on how such a framework could be implemented if approved. During this time, the country’s gambling regulator, ANJ, plans to study the impact of online casino markets in other nations to inform its recommendations.

Political uncertainties add another layer of complexity. A rise in gambling taxes has been approved, but ongoing political tensions, including a possible vote of confidence in Prime Minister Michel Barnier’s government, could disrupt plans entirely. For now, the future of iGaming in France remains uncertain, with all eyes on the upcoming discussions.