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France’s Proposed Online Casino Legalization Sparks Controversy and Delays

Plans-to-legalise-online-casinos-in-France-met-with-opposition-Postpones-budget-amendment-on-iCasino-laws The French government’s initiative to legalize online casinos has encountered significant pushback from various stakeholders, causing officials to halt their proposed amendment to the 2025 budget. This amendment, originally submitted by Prime Minister Michel Barnier’s administration, aimed to bring France’s gambling laws in line with other European Union (EU) countries. However, the intense opposition from addiction experts and land-based casino representatives led Budget Minister Laurent Saint-Martin to announce a postponement on Sunday, signaling the need for further consultations to address concerns.

Economic and Health Arguments for Legalization

Proponents of online casino legalization argue that the current prohibition places France at odds with EU standards, as it remains one of only two EU countries, alongside Cyprus, to ban online casino gambling. Despite this, France already allows online betting and poker, with poker being categorized as a skill-based game and thus exempt from the ban on games of chance.

Advocates of the proposed legislation believe that regulating online casinos would enable the government to generate substantial tax revenue and better manage public health risks by overseeing the sector. Government estimates suggest that legalizing online casinos could yield up to €1 billion in taxes annually, with a projected gross gaming revenue (GGR) tax of 55.6%, aligning with the rate applied to online lottery games.

The illegal online casino market in France is reportedly thriving, with the government estimating annual revenues from unregulated operations reaching as much as €1.5 billion. By bringing these activities into a legal framework, officials argue, they could address health concerns more effectively. The government stated that regulated online casinos could “limit the impact of online games on the health of consumers” and reduce the appeal of unlicensed operators.

Strong Opposition from Addiction Specialists and Casino Industry

Despite these proposed benefits, the plan has faced substantial resistance from those concerned about public health and the livelihood of France’s physical casinos. Féderation Addiction, a coalition of addiction specialists, warned against the amendment, labeling it “irresponsible and contrary to public health priorities.” Citing statistics from 2019, the organization highlighted that 1.4 million people in France were already at risk of excessive gambling, with nearly 400,000 dealing with severe gambling addiction. They cautioned that legalizing online casinos could exacerbate these issues, with more individuals potentially developing problematic gambling behaviors.

France’s land-based casino industry also voiced strong concerns, citing potential economic damage. The president of Casinos de France, Grégory Rabuel, expressed alarm over the projected consequences for physical casino venues. In a statement, Rabuel noted that “opening up online casinos will lead to a fall in gross gaming revenue for land-based casinos of between 20% and 30%.” He also warned that up to 30% of establishments could face closure, threatening around 15,000 jobs. This sentiment was echoed by over 130 French mayors in an editorial published in Le Figaro, where they argued that legalizing online casinos would ultimately harm the industry rather than boost the state’s finances, describing the proposal as “opening a Pandora’s box.”

Postponement and Future Considerations

In response to these concerns, Minister Saint-Martin confirmed that the amendment to legalize online casinos would be removed from the 2025 budget proposal, stating, “We need to work among ourselves first.” He emphasized the government’s commitment to considering all parties involved, especially land-based casinos. This delay maintains the current regulatory framework established in 2010, which allows for sports betting, horseracing, and poker but excludes online casinos.

However, the government has not entirely abandoned the idea. Saint-Martin indicated that future discussions may revisit online casino legalization, with potential legislative measures addressing tax generation, protections for physical casinos, and public health safeguards. Casino representatives, for their part, remain cautious but are prepared to engage in constructive discussions. Rabuel expressed relief over the postponement and emphasized the importance of a collaborative approach: “We remain vigilant to ensure that any future legislative or regulatory changes take place within a framework of consultation and constructive dialogue.”

As the debate continues, the French government’s approach will likely focus on balancing economic incentives with the need to protect public health and safeguard the interests of the country’s established casino sector. The final decision, expected after thorough consultations, will determine whether France joins the majority of EU countries in permitting online casinos or continues to uphold one of the EU’s most restrictive gambling regulations.

Sources:

“Plans to legalise online casinos in France met with opposition“, rfi.fr, October 23, 2024.

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Is Australia Considering Adjustments to Proposed Gambling Ad Ban?

Australian-government-expected-to-water-down-Murphys-law-gambling-ad-ban A series of media reports have indicated that the Australian government is preparing to announce its response to the 2023 Murphy Report. However, it appears that the comprehensive ban on gambling advertisements recommended by the report is unlikely to be fully implemented. The government is expected to introduce a less stringent version of the ban, informally known as “Murphy’s law,” in memory of the late MP Peta Murphy, who championed these reforms.

The proposed restrictions include a cap of two gambling ads per hour until 10 p.m. and a prohibition on gambling advertisements one hour before and after live sports broadcasts. These measures reflect a compromise intended to balance public concern over gambling promotions with the interests of the media industry.

Current Status of the Proposal

Jamie Nettleton, a partner at the gaming law firm Addisons, shared his insights with iGaming Business, suggesting that the government may be cautious about alienating media organizations. “The government’s final stance on the issue remains uncertain,” Nettleton noted. “These proposed restrictions are currently in the draft stage and have not yet gone to cabinet, so there is no clear timeline for implementation.” The government is expected to release its response in the coming weeks, with the understanding that any changes would need to be enacted through legislation filed in parliament.

Focus Shifts to Online Gambling Ads

The initial report by the House of Representatives Committee on Social Policy and Legal Affairs, published in June 2023, called for a complete ban on all gambling advertisements within three years. This would cover both broadcast media and online platforms. The report was authored by MP Peta Murphy, who sadly passed away in December last year.

As it stands, online gambling ads might also face restrictions, particularly on commercial radio, where ads could be banned during specific time slots, such as from 8:30 a.m. to 9 a.m. and from 3:30 p.m. to 4 p.m. A full ban on online advertising is still a strong possibility, which Nettleton believes could significantly impact affiliates and influencer marketing. “The sector has known this was coming and has been working to put restrictions in place for some time,” Nettleton explained.

Meetings between the government, sports organizations, gambling stakeholders, and media entities have been ongoing. However, there is still uncertainty surrounding the implications for sports advertising, including jersey sponsorships and on-field promotions. According to Nettleton, these aspects have not yet been clearly addressed.

Reactions to the Proposed Restrictions

The government’s revised approach has sparked reactions from various quarters. Independent senator David Pocock criticized the watered-down version of the restrictions on August 6. Pocock questioned why there had been a shift from the initial support for a total ban to the current, more lenient proposals.

“A phased-in gambling ad ban would destroy sport – where have we heard that before?” Pocock expressed in a post on X. “What a total cop-out & betrayal of the late Peta Murphy’s legacy. There is support in the parliament to implement the Murphy Review recommendations in full – not some watered-down policy to appease the gambling industry.”

Industry Adjustments to Advertising Practices

In response to the evolving regulatory landscape, some Australian gambling operators have begun to adjust their advertising strategies. Betting operator Tabcorp, for instance, had initially backed the reduction of gambling advertising in its submission to the Murphy Report last year.

Similarly, PointsBet has taken steps to curtail its gambling advertising. The company no longer displays ads on free-to-air television between 6 p.m. and 9:30 p.m. Additionally, PointsBet is withdrawing its branding from stadiums and sports team jerseys, meaning sponsorship agreements with teams like the Manly Sea Eagles and Cronulla Sharks will be terminated by 2025.

As the Australian government continues to deliberate on its final response to the Murphy Report, the gambling industry awaits a clear direction on how these proposed changes will reshape the landscape of gambling advertising in the country.

Source:

Australian government expected to water down “Murphy’s law” gambling ad ban, igamingbusiness.com, August 6, 2024.

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