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What happens to online casino plans when your only government ally loses power?
French gambling operators face uncertainty after François Bayrou lost a no-confidence vote, ending his tenure as Prime Minister. Bayrou had been one of the few government voices supporting the gambling industry, particularly opposing proposed tax hikes that could push operator costs to 70% of gross gaming revenue.
The Prime Minister had sought exceptions for horse racing from gambling tax increases, warning of job losses similar to concerns raised in the UK. His departure leaves online casino legalisation efforts without a clear government champion.
High taxes already strain operators
How can operators survive 70% tax rates when European rivals pay 20-35%?
Recent French Senate hearings highlighted the taxation burden facing operators. Nicolas Béraud, Betclic CEO and President of online gaming trade group AFJEL, told lawmakers that French operators face effective tax rates approaching 70% of gross gaming revenue when including VAT, media spend taxes and betting levies.
Béraud stressed these rates “contrast with around 20% to 35% in many other European markets”. The taxation pressure makes France’s gambling market among the most expensive for operators in Europe.
Grégory Rabuel, President of Casinos de France and CEO of Groupe Barrière, confirmed the country’s 202 casinos oppose iCasino regulation but would adapt if legalisation proceeds. This matches recent analysis showing land-based operators’ reluctant acceptance of online competition.
Replacement candidates offer mixed prospects
Which potential leaders might support gambling industry positions?
Several candidates could replace Bayrou, each bringing different approaches to gambling policy. Sébastien Lecornu and Gérald Darmanin both served in the Michele Barnier government that originally proposed online casino legalisation, suggesting potential continuity.
Bernard Cazeneuve emerges as another frontrunner with relevant experience. During his time as interior minister, Cazeneuve supported land-based gambling expansion and commissioned reports exploring legal gambling reintroduction in Paris, citing potential economic benefits similar to London.
However, no candidate has emerged as a clear advocate for online casino legalisation or gambling tax relief, leaving operators uncertain about future policy direction.
Online casino legalisation hangs in balance
Can France’s online casino push survive government instability?
The online casino debate had slowly returned to French political discussion in recent years. Senate hearings gave operators platforms to argue for regulated iGaming expansion, but progress depended partly on government support.
Bayrou’s neutrality on online casino legalisation had been more favourable than outright opposition from other officials. His departure removes a voice that understood gambling industry concerns about tax policy and regulatory pressures.
French gambling operators now face the challenge of building relationships with new government leadership whilst managing some of Europe’s highest tax burdens. The outcome could determine whether France joins other European markets in online casino legalisation or maintains its restrictive approach.
The gambling industry must also navigate broader economic pressures as operators balance high French taxes against opportunities in lower-tax European jurisdictions.
Source: iGaming Expert
