France Rumored to Be Finally Legalizing Online Gambling

With the rapid growth of the number of players gambling online, countries worldwide have found themselves in tricky positions regarding the regulation and legalization of this activity. Some opted to fully legalize it, the others decided to ban it completely, leaving consumers no other choice but to gamble on illegal platforms.

According to some rumors, France is mulling over the option of iGaming legalization in the first months of 2024. Although rumors aren’t yet confirmed, it is speculated that the gaming operator Française des Jeux (FDJ) could be given the entire online casino market.

Another reason why these speculations are believed to be much more than just that is the fact that the European Gaming and Betting Association (EGBA) urged France to regulate online casinos, so to prevent people from visiting the black market.

Experimental Period

France may not have taken some concrete steps towards the regulation of online gambling, however, that doesn’t mean that no progress has been made so far.

Earlier this year, the government hinted its plans to give land-based casinos permission to provide online casino gambling. According to the Bill presented, brick-and-mortar operators would be allowed to launch online platforms during a five-year period. No significant progress has been made ever since, but the Bill wasn’t killed either.

On the other hand, the country is preoccupied with the regulation of Jonum, which encompasses “games with monetizable digital objects”. This legislative framework aims to address the regulation of Web3 and blockchain gaming.

Putting a Stop to Illegal Practices

As far as the stats reveal, over one million consumers access offshore gambling sites each month, exposing themselves to unsafe sites and potential harm. That’s also one of the reasons EGBA urged France to focus more on regulating the iGaming sector.

In addition to this, it is evaluated that the legalization of black gambling could account for up to €1.5bn ($1.6bn) in annual gross gaming revenue (GGR). Also, 50% of France’s black market website traffic is visits to online casinos, with 3 million customers accessing sites at least once per month.

Maarten Haijer, EGBA Secretary General, said:

 “The ban is counterproductive and fails consumers. By regulating online casino games through a multi-licensing model, France would better protect its consumers, regain more control over its online gambling market, and secure vital tax revenues.”

As he concluded, the best way to deal with the black market is to establish a competitive regulated market, which would benefit the country itself, gambling companies, and consumers.

More Reasons in Favor of Gambling Legalization

Aside from providing a safer environment for consumers, France is highly likely to support the initiative of gambling legalization because of the revenue it would automatically acquire.

As a small reminder, FDJ was a state-run operator before the government took it public and retained approximately 25% of the company. Assigning FDJ to control the interactive gambling sector would secure the government with a larger revenue stream.

On top of that, earnings would be even higher if the government were to block illegal gambling sites. Worth noting is that ANJ, the local regulator, is already working on blocking illegal websites, but this will only motivate them to step up its efforts. The ultimate goal is to forward the traffic to FDJ.

Source:

“EGBA urges France to legalize online casino games for player safety”, gamblinginsider.com, December 5, 2023.