No increase in Gambling Tax in France

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No increase in gambling tax in France for the time being

The budget for financing social security in France for 2025 does not include an increase in gambling tax. Earlier this month, rumours emerged that providers of (online) gambling could have to pay more than 60% of their gross gambling results.

At the beginning of October, the French daily Les Echos exclusively reported that the French government was planning to increase gambling tax on sports betting
and lotteries. According to the rumours, this would involve a tax rate of more than 60% of the providers' gross gambling results.

A contact person from the gambling sector told Les Echos that online bookmakers would take the biggest hit, with almost €150 million in additional tax costs.
Française des Jeux
(FDJ), which completed the takeover of Kindred earlier this month, would have to pay an additional €138 million for its lottery revenue.

A source from the industry association AFJEL told the French newspaper that the effects would be devastating, with a majority of legal providers potentially having to cease their activities.

No increase for now

Last week, the budget for the financing of social security for the coming year was submitted to the National Assembly.
Contrary to rumours from Les Echos, no increase in gambling tax has been included in the budget. Since this is a draft budget,
it is possible that an increase will still be included in the final budget during the process.
Isabelle Falque-Pierrotin, president of the National Authority for Games (ANJ), told Les Echos that it would not be a bad decision to increase gambling tax:

“The gambling market is only legal in exceptional cases, these are not ordinary services. It therefore does not seem illegal to tax this market in a serious budgetary impasse and in the name of public health.”

Isabelle Falque-Pierrotin, ANJ

Developments in Europe
Despite the fact that there will be no increase for the time being, providers of (online) games of chance in France pay the highest gambling tax in Europe with a rate of around 55% on their gross gaming result. In the Netherlands, gambling tax has also been a topic of discussion for months due to the increase in two steps from 30.5% to 37.8%.

Earlier this week it also emerged that the British government is considering a significant increase in gambling tax. This would include an increase from 21% to 50% for online casinos, which according to the political party Labour would yield £3 billion (€3.58 billion) for the state coffers.

At the same time, the Swedish government is reconsidering the increase in gambling tax, which was implemented a few months ago.
Three months ago, the tax rate for (online) games of chance went from 18% to 22%.
 
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