France Senate Approves a Gambling Tax Increase
Now is not a good time for French gamblers as the France Senate Approves a Gambling Tax Increase. According to gambling news websites, the decision was made yesterday as part of the tax adjustments for the 2025 budget. Furthermore, they are part of the 2025 budget proposed by Prime Minister, Michel Barnier back in October.
For France, this is a significant policy shift across various sectors. This action is part of a broader strategy aimed at mitigating public deficits. It will be done by leveraging industries characterized by substantial profit margins, such as the gambling sector.
How much will the France Gambling Tax Increase Be?
Originally, the proposed gambling tax increases on gambling were dismissed by Members of Parliament. However, the Senate endorsed the measures on Thursday. The Gross Gaming Revenue (GGR) from lotteries is set to be taxed at 10%, while retail sports bets will see an increase from 7% to 10%, and online bets will rise from 10.5% to 15%.
In October, Prime Minister Michel Barnier’s Budget 2025 suggested a tax hike across all gambling sectors, aiming to generate €500 million from French operators.
The recent tax increases have generated significant apprehension among stakeholders in the industry. Nicolas Béraud, the CEO of Betlic and President of the French iGaming trade association AFJEL, articulated serious concerns during the annual conference of the trade body. He emphasized the adverse impact these tax hikes could have on the profitability of operators. Even those that have use a sportsbook pay per head to operate their gambling websites have concerns.
In addition, he has concerns of the potential threats to sports federations, leagues, and grassroots organizations. Citing the Public Gaming Research Institute, he said the government was either underestimating or, at worst, disregarding these critical issues.
Jean-François Vilotte, the former President of the French gambling regulator AFJEL and currently the CEO of the French Football Federation (FFF), also conveyed his apprehensions. He cautioned that the financial viability of numerous sporting organizations could be at risk, which might even compromise the integrity of sports. His sentiments were shared by leaders from the French Olympic Committee, who have called on the government to reassess the proposed fiscal policies.
France Senate Approves a Gambling Tax Increase to Fund Social Security and more
Doineau’s amendment highlighted that the enhancement of taxation on gambling in France is intended to “mitigate the risk of excessive and pathological gambling.” This assertion is supported by research indicating a correlation between the growing popularity of gambling in France and the prevalence of gambling addiction within the nation.
The anticipated tax increases are projected to yield an additional €50 million each year, aiding the country’s initiatives to reduce public deficits.
The anticipated tax increases are expected to elevate the contributions from gambling to France’s healthcare system to €1.6 billion (£1.3 billion/$1.7 billion), up from the previous amount of €1.2 billion.
Nevertheless, this decision has sparked considerable debate. Opponents contend that these hikes may hinder investment in the gambling industry and result in elevated expenses for consumers, which could ultimately push French gamblers towards offshore sportsbooks platforms.
As France undertakes these fiscal modifications, the gambling sector stands at a pivotal juncture. The government plans to form working groups in January to conduct a more thorough assessment of online casino regulations, prompting stakeholders such as FDJ to brace for various outcomes. It remains uncertain whether these tax increases will foster sustainable growth or result in unforeseen economic repercussions.
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