French Senators Approve Gambling Tax Hikes
Nicolas Béraud, CEO of Betclic and President of AFJEL, warned the increased taxes would harm profitability and jeopardise funding for grassroots sports and leagues.
The French Senate has approved tax increases on gambling as part of the government’s Budget 2025 proposal to raise €500 million for social security and national debt reduction. The measures include raising:
- Lottery GGR tax from 7% to 10%
- Retail sports betting tax from 7% to 10%
- Online betting tax from 10.5% to 15%
French casinos and online operators, already taxed at around 55% of GGR, could see this rise to nearly 60%, prompting criticism from operators and sports organisations. Nicolas Béraud, CEO of Betclic and President of AFJEL, warned the increased taxes would harm profitability and jeopardise funding for grassroots sports and leagues.
Jean-François Vilotte, former head of France’s gambling regulator, echoed concerns, stating the changes could destabilise sports bodies and undermine ethics in French sports.
FDJ’s Opposition to Online Casino Regulation
Simultaneously, Française des Jeux (FDJ), the French lottery operator, has opposed the regulation of online casinos, drawing accusations of hypocrisy. FDJ benefits from a monopoly on scratchcards and instant games, which offer payout ratios of 65%-72%, significantly lower than online slots’ 96%. Regulation could force FDJ to compete with higher-payout casino games, threatening its margins.
FDJ’s recent €2.6 billion acquisition of Kindred Group, owner of 32Red and Maria Casino, suggests the company is prepared for regulation but prefers to maintain its exclusive position. FDJ stated that regulation would fail to address illegal gambling or public revenue concerns and called for comprehensive impact assessments.
Next Steps
Following opposition from casinos and local leaders, the French government withdrew the online casino amendment. A roundtable has been held to discuss the issue, and working groups will evaluate the matter in January 2025.
