French senators have approved new tax surcharges across all gambling verticals. The “behavior tax increase” will target soft drinks, tobacco and gambling.
Previously rejected by MPs in the region, senators passed the measures yesterday, with lottery GGR to be taxed at 10%. All retail sports bets at 10% from 7% and online bets at 15% from 10.5% currently.
French casinos and online operators currently pay taxes on GGR of around 55%, and the new measures will see taxes rise to almost 60%. The reforms are part of the government’s plan to raise €500m to boost the social security budget and pay down the national debt.
Tax increases on all forms of gambling were proposed in October in Prime Minister Michel Barnier’s 2025 budget plan, with plans to raise €500m from French operators.
Opening the annual conference of the country’s gambling industry body AFJEL this week, Nicolas Béraud, Betclic CEO and AFJEL president, said higher taxes would make it even harder for operators to make a profit and would put many sports federations, leagues and grassroots organisations at risk.
The government is “underestimating at best and ignoring at worst” their concerns, he said.
He added that regulation is hindering the industry when it comes to providing maximum protection for players.
He also warned that French players could find an online casino site on Google in minutes and “play without even realising it’s an illegal site.” He also noted that with an estimated four million active players and revenues of €2 billion, the illegal market in France is already “the size of a mature market.”
“We honestly don’t know if problem gambling rates have gotten worse in recent years, but the four million playing on illegal sites should be brought into a legal setting. There is no one better than online operators at monitoring activity and detecting problem gamblers,” added Béraud.
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