France Opens to Foreign Gaming Companies

Several countries around the world, including France, have come to accept that the best solution with respect to internet gambling is to legalize, regulate and tax the industry.

Earlier this year, the French parliament voted in favour of legalizing online gambling, allowing international gambling operators to enter the French market for the first time. The change in French law will allow a select few highly rated foreign online casinos to tap into the potential revenue generated by French players and further fuel their growth.

It is anticipated that a number of high-profile gambling operators, such as 888casino and William Hill Casino, will have their applications for an online gambling license approved and will start business in January 2011.

High tax

However, foreign companies entering this emerging new market will have to contend with very high taxes imposed by the French authorities (as much as 8.5% on all betting stakes). This is discouraging and is clearly intended to favour and protect local businesses. In fact, the high cost of doing business in has forced many big names in the industry, such as Ladbrokes, to withdraw from the French market.

Whilst a review on gaming tax is scheduled in the coming year, it is uncertain whether this tax will be reduced or altogether abandoned.

Benefits of regulation

On the other hand, regulation also brings positives. For instance, operators are forced to adopt higher standards of service and this can include, amongst other things, detection of problem gambling and age verification. Players entering French online casinos are already required to verify their age.

Thus regulation can lead to greater protection of the consumer that is the player to ensure that they have an enjoyable and safe experience.

For more on the state of online gambling in France, visit Online Casino Reports France.