France engages stakeholders for online casino regulation talks

Sudhanshu Ranjan November 7, 2024

SiGMA news

The French government is set to hold discussions with major gambling stakeholders, aiming to find a path forward in the delicate matter of online casino regulation. This meeting comes after two intense weeks of developments, marked by the government’s initial introduction of a proposed amendment to open the online casino market, followed by its sudden withdrawal in response to mounting opposition from land-based casinos and local authorities.

Why iCasino regulation is a key issue?

The rise of online gambling has posed challenges for traditional casinos. With an increasing number of French citizens turning to online platforms, operators argue that regulating online casinos could bring significant revenue into the country while ensuring consumer protection and fair competition.

The government’s amendment aimed to open the online casino market to multiple operators who meet compliance and licensing criteria, creating an environment where both land-based and online casinos could coexist in a competitive space.

Reactions from land-based casinos

France’s land-based casinos, represented by trade bodies like Casinos de France (CdF), have long opposed open-market models for online casinos. They are concerned that an open market could lead to revenue declines and market erosion as players shift online.

Facing intense pressure from various fronts, the government recently withdrew its proposed amendment. The sudden reversal reflects not only the influence of France’s powerful casino lobby but also widespread disapproval from local authorities who argued that the move could have negative socio-economic effects.

More than 100 mayors signed a petition against the proposed regulation, reflecting a strong stance from local communities. For many areas, land-based casinos are significant employers and contributors to the local economy, making local government support crucial for any changes to gambling law.

Newly proposed model

Online operators, including companies like Betclic and Winamax, have been vocal in their support for a regulated market where they could compete. One possible solution is the AFJEL model, which would see online operators working in collaboration with land-based casinos to provide digital services.

Française des Jeux (FDJ) has emerged as a key player in the debate. With substantial lobbying power, FDJ has been working with the government and AFJEL to shape the conversation around online gambling regulation.

With both government and industry stakeholders now actively involved, it seems that some form of online casino regulation is likely soon. While the exact terms are yet to be determined, it’s clear that there is significant support for a solution that respects the interests of both land-based and online operators.