France Ponders Legalizing Online Casinos Amid Black Market Surge

One of the only countries in Europe where online casinos are technically illegal, the French gaming authorities are worried about a 35% rise in illegal gambling in the past 2 years. A study back at the beginning of November by the French Online Gaming Association, AJFEL, found that more than 3 million French people have developed poor gambling habits on these illegal platforms. The lack of player protection measures, poor security, and the vague legislation regarding what is legal and what is not is harming France.

And over 80% of those gamers using the illegal platforms don’t even realize they are effectively breaking the law. Along with Cyprus, France is the last country in Europe to have no legal online casinos, state regulated or otherwise. It would have one of the biggest markets as well, rivalling Italy, Germany and the UK. Talks about legalizing online casinos have been pondered in the past, but now, more than ever, France may have to think about joining the rest of Europe and legalizing online casinos in 2026.

Are Online Casinos Illegal in France

Only a few forms of gambling are legal in France. Landbased casinos, betting and gambling is permitted. Online gambling was legalized in 2010, but it was limited to only a few types of games. Sports betting, horse racing and poker – like Texas Hold’em or Omaha – are all legal both online and offline. However, the classic casino games are not legal on online platforms.

That means, slots, blackjack, baccarat, punto banco, and a French favourite, roulette, are only legal at landbased French casinos. Gambling is strictly regulated, although foreign EU based operators can cater to French gamers, but they can only offer poker, sports betting and horse racing bets.

Online gambling was legalized in France shortly before the 2010 World Cup, and within the first month, over a million customers opened betting accounts on licensed sites. They bet over €80 million on that tournament, which was twice as much money as the summer of 2009, when the only legal channels were the state-owned betting websites.

Besides sports betting, horse racing and poker, France also has legal state lotteries, and a plethora of landbased gambling venues. The Autorité de Régulation des Jeux En Ligne, or ARJEL, is the original gambling authority in France that was created in 2010. It was replaced by the Autorité Nationale des Jeux, ANJ, in 2020. The ANJ is now the new and current gambling authority in France.

No Online Casinos – Too Addictive

On the subject of online casino games, spread betting and even betting exchanges, the French authorities deemed that these types of products were too addictive. To curb gambling addiction, the French authorities made a 8.5% tax rate on sports betting, with payback to players limited to just 85%.

However, given the recent data on black market gambling, it seems the French authorities’ plan has pretty much backfired. Black market gambling is on the rise, and with it, there are very real dangers to the overall well-being and health of the French gambling public.

AJFEL Study on the Black Market

The AJFEL, which is a trade association that represents licensed online gambling operators in France, is not connected to the French Gambling Authority, ANJ. It carries out independent research and acts as a mediator between operators and lawmakers, much like the EGBA does for Europe as a whole. In November, the AJFEL conducted a study on the black market in France. The study was made in light of recent French legislation to increase the taxation on operators, and the president of the AJFEL, Nicolas Béraud, stated the urgency to reopen the discussions on the regulation of online casinos and restore fair conditions for a better balanced industry.

The gross online gaming revenue in France reached €2.6 billion in 2024, a 11% increase on the year before. However, the organization claimed this was due to major events like the Paris 2024 Olympics and the 2024 European Championship in football. While the revenue increase seems positive, the report suggests it is short lived, and licensed French operators have serious competition from a growing black market.

• 5.4 million French players are participating in unlicensed online gambling activities
• 3+ million French players display risky gambling behaviors
• 4 in 5 French people who use the black market sites don’t know they are illegal
• Illegal gaming has increased by over 35% in the past 2 years
• Around 70% of users report being victims of cybercrime such as phishing or data theft after using these sites
• An estimated €1.2 billion in tax revenue is being lost to the state each year due to unregulated gambling

The argument is clear. Legalizing online casinos would clean up the sector, introducing licensed iGaming sites for players to turn to, and draw back lost revenue from the black market.

Opposition from Landbased Casino Operators

Though there has always been pushback from the landbased operators. The Casinos de France, an association that represents over 200 French landbased casinos, has always stood out against legalizing online casinos. The argument is that the online iGaming platforms would drain revenue from the landbased operators, potentially causing a 20-30% drop in revenue for these venues. When landbased gaming venues take a hit, that brings the threat of staff cuts and potential closures. Which, in turn, impacts gambling tourism and state revenue for the worse.

The group has dismissed any potential state revenue through legalizing and taxing online casinos, stating that the net result would be a financial loss, as broader economic impacts are factored in. Efforts to legalize online casinos in France have been circulating for years, and the draft amendment to the 2025 National Budget proposed opening the market. With strict taxes and conditions to protect players, it was drafted in the framework, but the political backlash stopped any meaningful action from being taken. With the warnings from the AJFEL and player welfare at stake, France may well have to onboard the possibility that legalizing online casinos may be the answer.

iGaming Laws Tightening Across Europe

European regulators have actively enhanced security, reformed their licensing framework, and tightened control over their markets. A pan European alliance last month saw 7 countries link forces, sharing data about black market operators to identify them more easily. Italy has reshaped its licensing structure, wiping out hundreds of betting skin sites to create a cleaner market. Spain has also introduced greater player protection legislation, and the UK has  increased gambling tax, and it has stepped up its responsible gambling incentives.

There are many roads for France to take if it were to legalize online casinos. Limiting payment options, restricting gambling ads, enforcing deposit limits, creating a nationwide self exclusion register, and introducing extensive responsible gambling tools could help create a safer environment for players. It has many precedents across Europe to use when drafting up the legal online casino framework. As one of the last EU countries with illegal online casino gaming, France is already losing revenue and players to the black market, and now it has to reconsider its priorities.