France: Are pro-iCasino arguments recognised & accepted?

French Senate hearing enabled online leaders to clearly spell out case and context for the much needed regulation of online casino, benefitting the state and protecting consumers

The Senate’s Financial Committee hearing that featured France’s leading gaming companies two weeks ago saw senior executives spell out the context and factors impacting their specific verticals. Although the arguments have been aired before, could the fact that they were addressed at sitting politicians may help produce a more understanding environment of the pressures French gambling groups operate under?

Hearing Aid

Nicolas Béraud, Betclic CEO and President of the online gaming trade group AFJEL, pointed out that French online operators are overtaxed, at close to 70% of their GGR, once extra costs like VAT, media spend tax and right to bet levy are included.

He stressed that it was important for French lawmakers to understand that such levels of taxation “contrast with around 20% to 35% in many other European markets”.

Grégory Rabuel, President of Casinos de France and CEO of Groupe Barrière, reiterated the point that the country’s 202 casinos were not in favour of iCasino regulation, but, should it happen, they would be ready, which very much chimes with G&Co’s recent analysis. 

Stéphane Pallez, CEO of FDJ United, was more neutral and called for serious analysis and for stakeholders to take the time to assess all the factors. Again, despite owning strong online casino brands via its ownership of the Kindred Group, FDJ has been decidedly lukewarm on online casino regulation.

However, this could be due to the fact that it already runs a large portfolio of online instant and casino-like games.

A Big Ticket Item

For the online industry the major ticket remains the potential regulation of online casino in France, which, as G&Co has written numerous times, is the last major western European market not to have legalised the vertical.

What is undeniable is that via Béraud’s words, the hearing enabled the online sector to explain to politicians the environment in which it works and put forward the arguments for iCasino legislation. Béraud and AFJEL did not respond to inquiries about whether they had received any feedback from the Committee.

However, the main points of discussion: that the online casino is an active vertical that is already open despite not being regulated, that the majority of European countries have successfully legalised the activity and that the current situation is no longer tenable and that France needs extra tax revenues; now seem well-established and understood by all.

A reduction in taxes is unlikely – like prices, once they have risen they rarely go down. But when it comes to iCasino, the question will be whether the pro arguments convince the country’s Senators to, if not push for, at least not lobby against regulation should the country’s lawmakers decide to move forward with it.