The French government is contemplating the legalisation and taxation of online casinos as a means to combat illegal gambling and address its growing fiscal deficit. Finance Minister Antoine Armand announced on Tuesday that the administration is assessing ways to either regulate or shut down illegal online gambling operations, ensuring that any legal entities contribute to the national budget through taxation.

“Those that exist, which are sometimes operating illegally must either be closed or be regulated or have to contribute,” Armand said in an interview with TF1. His comments come as the government seeks innovative solutions to reduce its ballooning deficit and harness potential revenue streams.

A 2023 PricewaterhouseCoopers (PwC) report, commissioned by France’s national gambling authority, revealed that the market for illegal online gambling, including games like roulette and blackjack, is worth up to €1.5 billion ($1.6 billion) annually. In comparison, France’s legal gambling market generated about €13 billion in 2022, with €3 billion coming from regulated online games such as poker, horse race, and sports betting.

The push to regulate online casinos would allow the government to capture part of this illicit market, bringing operators under the law while helping generate new tax revenues. Armand stressed the importance of ensuring that these online platforms contribute fairly to the economy.

The move comes amid broader consolidation in Europe’s gaming sector. Earlier this year, French lottery operator La Française des Jeux SA (FDJ) agreed to acquire Sweden’s Kindred Group Plc for approximately €2.5 billion. This acquisition bolstered FDJ’s offerings in online sports betting, casinos, and other gaming segments, positioning the company to capitalise on a rapidly evolving European gaming market.

The legalization of could have wide-reaching implications for the country’s gambling landscape, enhancing revenue streams while providing a regulatory framework to combat illegal operations. The government is expected to continue discussions on the issue, with more details likely to emerge in the coming months.

This potential move, if implemented, could mark a shift in France’s approach to online gaming, offering a balance between regulation and economic opportunity.