France, often considered the most romantic country in the world, has adopted a gambling-friendly approach. According to industry insiders, this is the best move the country could have made because it will boost the French economy and protect the interests of residents who are enthusiastic about gambling. Currently, all forms of gambling are regulated in France, but the industry had to follow a long, thorny path to get here.
Over the past decade, the gambling industry in France has grown rapidly. At the moment, there are over 200 land-based casinos offering various games. In Q3 2019, total revenue from the gambling market was estimated to have risen by 27.7% to €346 million. Statistics show that the most popular games among French players are video slots, roulette, and online poker.
Gambling Regulations in France
France has a rich history when it comes to gambling. The mere fact that some of the most iconic games, namely roulette and blackjack, originate here is proof enough that the country embraces this pastime. Gambling in France can be traced back to the 1500s, when the Queen was introduced to playing cards. Another indication that France is a gambling-friendly country is that its government regulated slot machines as soon as the game genre exploded in popularity. Moreover, in 1997, the government passed a law that lowered the legal gambling age from 21 to 18.
However, the gambling industry in France underwent a significant change in 2010, when the government passed the Gambling Act. It is worth noting that this occurred under pressure from the EU, which urged the French authorities to relax the rules. Before the Gambling Act was enacted, the French online gambling industry operated under a state monopoly.
The new law ended the state monopoly and led to the creation of the Autorité de régulation des jeux en ligne (ARJEL), the country’s gambling watchdog responsible for issuing licenses and overseeing the online gambling industry in France. Once online gambling was regulated, many casino operators entered the French market. However, traditional casino games such as roulette, slots, and table games were not included in the Gambling Act, as legislators considered them too addictive.
Unfortunately, the Gambling Act imposed prohibitive taxes on poker and sports betting. In addition, the law allows the pool to be shared only among players residing in France. Consequently, many licensed casinos left the French market, and these restrictions led numerous players to place bets at unlicensed offshore casinos. However, there are no laws targeting French casino enthusiasts who choose to play at unlicensed virtual casinos.
Currently, ARJEL is responsible for online poker and online sports/horse betting. Land-based gambling activities fall under the authority of the Minister of the Interior. Bingo and lotteries, in both their online and offline forms, are entrusted to the Budget Minister and the Minister of the Interior.
The Future of the Online Gambling Industry in France
In 2019, it became clear that the French government was considering amendments to the gambling tax. According to the latest information, the tax will be imposed on gross gaming revenue instead of overall turnover. Online sports betting will be taxed at 33.8%, and online poker will be taxed at 36.7%. Horse racing will be taxed at 19.9%. Furthermore, the government proposed that social security payments be based on revenue, which will result in a tax of 6.8% on horse racing, 10.7% on sports betting, and 4.1% on online poker.
According to the Senate, these changes will allow operators and the state to receive their fair share based on players’ success.
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