French iGaming Legalization in Peril as Barnier’s Government Shakes

PM Michel Barnier might set a new record for the shortest PM term in the history of France, should a vote of no confidence pass. Set to take place later today, the vote could lead to political instability and, by extension, affect the gaming industry.

Barnier Failed to Appeal to the Far Sides of the Political Compass

The current vote is led by La France Insoumise (LFI), a local far-left party, and supported by the far-right party Rassemblement National (RN). This bipartisan opposition to Bernier’s government could also attract additional support, potentially spelling the end of the MP’s term.

The opposition against Bernier swelled last week when other lawmakers rejected his budget. In an attempt to address France’s national debt, Bernier sought tax hikes that would have affected a variety of business sectors, including gambling.

However, this proposal didn’t sit well with many, despite the fact that France’s national debt has exceeded the limit set by the European Union. In addition to opposing the increases in corporate and good taxes, many were dissatisfied with the MP’s planned reduction in social services.

The iGaming Legislation Might Stagnate

Bernier’s critics slammed his envisioned tax hikes on online betting, describing them as a targeted tax assault. While the tax hikes wouldn’t have affected land-based casino, lotteries and bookmakers, they could have led to significant financial instability for online companies.

While the rejected budget was a reason for industry celebration, the vote of no confidence could potentially affect the industry negatively. Lawmakers, for context, mulled over finally bringing iGaming to France. However, these plans are likely to be jeopardized, should a no-confidence vote pass.

If that happens, the 2025 budget will not be revisited until a new government has been installed, forcing the country to continue operating under an adapted version of the 2024 budget. In addition, since President Macron will be tasked with appointing a new cabinet, this would mean trouble for the ongoing iGaming efforts.

In the meantime, France’s gambling regulator, the ANJ, appointed Jérôme Gallot as gaming ombudsman.