The French government has recently announced that it has started a dialogue with relevant companies and associations on the legalisation of online casinos. This decision was an important step in the context of changes in the gambling industry, as France and Cyprus are currently the only EU member states where online casinos are still banned. However, the dialogue that has already begun at the level of the administration of Prime Minister Michel Barnier suggests that the French gambling market may soon see positive changes.
Over the last 5-7 years, the global trend towards the development of gambling as a legal industry has become extremely evident, and more and more governments are aware of the advantages of the legal market and the risks associated with illegal operators. Finally, this understanding has reached France, which, given its socialist political and economic system, has remained conservative in the regulation of modern industries, including online gambling, until recently.
The corresponding amendment to the state budget was introduced to the French parliament just recently. Its initiators claim that the legalisation of online casinos will allow to attract significant funds to the state budget. According to their estimates, the annual volume of the illegal online casino market in France is currently over $1.63 billion. All these funds are not taxed in any way and pass by the state budget. Legalisation will allow to start taxing online casino profits at a rate of more than 55%. Moreover, legal online casinos will create competition for illegal ones and thus increase the overall level of security for players who currently have no legal alternative to play.
Therefore, it is expected that by 2025 the government will have developed effective legalisation mechanisms, and they are likely to become legal in early 2026.
It is important to understand that this step is part of a wider trend observed in Europe and other developed markets. Every year, more and more countries legalise gambling and its specific areas, realising that it can benefit both the budget and business.
According to many studies, the legalisation of gambling is favourable for the economy, as gambling companies create new jobs, pay taxes and licence fees. And the state gains real regulatory control over gambling, which allows it to convert this into budget revenues, rather than just spending money on fighting illegal operators.
In parallel with this general trend, the Ukrainian gambling market is also undergoing significant changes, and this is not only due to the war. Unlike the global market, our regulatory environment is on the contrary showing a tendency towards radicalisation. There are more prohibitions and restrictions on the legal market, while necessary and important regulatory changes for the market have not been adopted for years. This is used by illegal operators, which, of course, has a negative impact on the state budget, players, and the business of legal organisers.
Stricter regulation and unjustified bans often spoil the important dialogue between the government and the industry. Therefore, instead of introducing bans, it is necessary to implement effective regulatory mechanisms that will not only protect players but also promote legal business. This will help Ukraine to form a competitive gambling market where the rights of players are reliably protected and the state budget can be replenished by legal companies instead of suffering losses due to illegal ones.
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