The Tug of War Over France’s Gambling Future

The Tug of War Over France’s Gambling Future

The long-running debate over online casino regulation in France has resurfaced, reigniting tensions between policymakers seeking reform and land-based operators determined to preserve their position. Casinos de France, the organisation representing the nation’s physical casinos, has reiterated its opposition to legalising online casino play, arguing that such a move would undermine jobs, tax contributions, and the stability of local economies across the country.

The French government has been reconsidering plans to introduce a legal framework for online casinos, an idea first discussed several years ago but ultimately shelved following widespread opposition. The renewed conversation reflects ongoing pressure from industry stakeholders and regulators seeking to curb unlicensed gambling activity. Yet, the land-based sector views this potential reform as a direct threat to its survival.

Casinos de France estimates that introducing regulated online casinos could result in an annual loss of €546 million to the public purse, with indirect consequences for health services and employment. The organisation argues that redirecting player activity online would weaken the financial lifelines of many municipalities that depend on casino-generated tax revenue. For smaller towns, it warns, this could translate into diminished budgets, job losses, and a decline in community life built around the economic presence of these venues.

The trade body also disputes figures put forward by AFJEL, the association representing France’s online gambling operators. AFJEL has claimed that France currently forfeits up to €1.2 billion a year through unlicensed online casinos. In response, Casinos de France has dismissed that estimate as inflated and misleading, maintaining that the supposed financial gains from regulation would not compensate for the wider damage to the land-based economy.

Grégory Rabuel, president of Casinos de France and CEO of Barrière Group, described AFJEL’s figures as a distortion of the issue. He said the notion of lost revenue was a “hoax”. He argued that the real consequence of legalisation would be “the destruction of local jobs, the reduction of municipal budgets, and the erosion of cultural life in towns and villages.” Rabuel also expressed concern over potential social costs, warning that an expanded online gambling market could increase health-related spending tied to addiction and mental well-being.

France’s gambling sector has evolved gradually over the past two decades. The state first opened parts of the market 15 years ago, allowing licensed operators to offer online sports betting and poker. However, casino games were intentionally excluded from that reform. Since then, pressure to regulate online casino activity has mounted, driven by the growth of offshore platforms and the persistent use of unlicensed websites by French consumers.

Earlier this year, the government initiated a new round of consultations on potential regulatory options. However, the proposal quickly encountered the same resistance that derailed earlier attempts. Local officials and casino operators warned that allowing online competition could destabilise an established network of land-based venues that provide both employment and fiscal support for regional development.

France’s casino network is extensive. According to Casinos de France, there are 203 licensed casinos across the country and seven authorised gaming clubs in Paris. Together, they employ more than 31,000 people and contribute roughly €1.6 billion each year in taxes and social security payments. Additionally, the sector generates over €600 million annually for local governments, funding cultural and infrastructural projects. For many small municipalities, these casinos serve as key economic anchors, supporting hospitality, tourism, and public finances.

The association has also pointed to developments abroad as cautionary examples. In Sweden, Svenska Spel, once a state monopoly, closed all of its Casino Cosmopol venues after the country liberalised online gambling. Despite a regulated market, Casinos de France notes that nearly 40 percent of Swedish wagers are still placed on unlicensed platforms, suggesting that legalization does not necessarily eliminate unregulated play. The group warns that France could face similar challenges, with regulation failing to protect public revenue while simultaneously weakening existing land-based institutions.

The question now confronting France is how to strike a balance between innovation and preservation. Proponents of online gambling regulation argue that a transparent licensing model could help the state recover lost revenue and improve oversight. Opponents, however, caution that the costs of such reform, both social and economic, may outweigh the benefits. They contend that the current system, though limited, sustains employment, local investment, and mechanisms for responsible gambling.