France’s Senate Passes Gambling Tax Hikes to Cover Deficits

France’s gambling industry faces sweeping tax hikes as the Senate approves measures to address mounting public deficits.

The new taxes target lotteries, casinos, and sports betting, with increases averaging 10% across the board.

While advocates praise the move as a way to redistribute wealth, critics warn of reduced investment and increased consumer costs.

Explore how these changes will reshape France’s gambling landscape and impact operators and players alike.

France’s Senate Approves Controversial Tax Hikes on Gambling Amid Industry Concerns

Key Points:

1. Gambling Tax Hikes Approved: Lotteries, casinos, and sports betting operators will face an average tax increase of 10%.
2. Projected Revenue Boost: The government expects to raise an additional €50 million annually from gambling taxes.
3. Industry Concerns: Critics warn of reduced investment, market consolidation, and the potential rise of offshore gaming platforms.

France’s Senate Approves Gambling Tax Hikes

On November 21, the French Senate approved a set of controversial tax increases targeting gambling operators, part of the government’s plan to reduce public deficits. These measures, included in the final version of the Social Security budget, surprised many industry insiders who believed gambling taxes would remain unchanged.

The tax hikes will impact lotteries, casinos, and sports betting operators, with increases varying by activity type. On average, taxes will rise approximately 10% above current levels, with operators already paying a steep tax rate of around 55% on gross gaming revenue (GGR).

Sports Betting and Lottery Taxes

While all major gambling sectors will see tax increases, sports betting operators are receiving a smaller bump than initially expected. Online and retail sports betting platforms will face a 1% increase, compared to the 4.4% hike proposed in earlier drafts of the budget.

The government projects these tax hikes will generate an additional €50 million annually, redirecting funds toward addressing France’s growing public deficits. However, horse racing betting has been exempted from the increases, following strong opposition from the industry. Advocates argued that further financial burdens could harm horse racing and its associated businesses, such as breeding and event sponsorships.

Mixed Reactions from the Gambling Industry

The decision has sparked a divided response among industry stakeholders. Supporters of the tax increases argue that gambling operators, especially major players, are financially robust and well-positioned to absorb the new rates.

Senator Thomas Dossus, a vocal advocate, referred to online gaming operators as “parasites that contribute to making this world toxic.”

Proponents of the measure also point to the industry’s significant profitability. For example, the French gambling regulator reported a casino GGR of €13.4 billion in 2023, highlighting the sector’s capacity to contribute more to public funds.

However, critics warn of potential negative consequences. They argue the increased taxes could lead to reduced investment in the industry and force operators to pass costs onto consumers. Smaller operators may struggle to remain competitive, potentially triggering market consolidation or even pushing players toward offshore platforms.

Broader Implications

Prominent figures in France’s gambling industry have expressed concerns about the long-term implications of the tax hikes. Jean-François Vilotte, former President of the gambling regulatory body AFJEL and current CEO of the French Football Federation (FFF), warned that the changes could destabilize sports organizations reliant on gambling sponsorships.

“The proposed tax increases risk undermining the financial stability of sports organizations and could compromise the integrity of French sports,” Vilotte stated.

Other Tax Targets: Tobacco and Sugary Drinks

Gambling is not the only industry affected by France’s latest tax reforms. The Senate also approved higher taxes on tobacco products and sugary drinks.

The tax on cigarettes will increase the price of a pack to €12.70, aligning with France’s public health goals of discouraging smoking while raising €200 million annually. Similarly, taxes on sweetened beverages aim to combat rising obesity and diabetes rates while generating funds for health initiatives.

However, the Senate rejected a proposed tax hike on alcohol, despite its inclusion in earlier discussions.

The French Senate’s decision to impose higher taxes on gambling operators marks a pivotal moment for the industry. While supporters argue the changes will help address public deficits and promote wealth redistribution, critics fear long-term consequences such as reduced competition and increased consumer costs.

For operators, navigating these changes will require careful planning and adaptation. The gambling sector, which contributes significantly to France’s economy, now faces the dual challenge of maintaining profitability while complying with stricter financial obligations.

As these tax measures take effect, their impact on the industry, consumers, and broader public financing will become increasingly evident. Whether this move leads to sustainable growth or market disruption remains to be seen, but it undeniably signals a new chapter in France’s gambling regulation.

The post France’s Senate Passes Gambling Tax Hikes to Cover Deficits appeared first on Gamingo News.

France’s gambling industry faces sweeping tax hikes as the Senate approves measures to address mounting public deficits. The new taxes target lotteries, casinos, and sports betting, with increases averaging 10% across the board. While advocates praise the move as a way to redistribute wealth, critics warn of reduced investment and increased consumer costs. Explore how
The post France’s Senate Passes Gambling Tax Hikes to Cover Deficits appeared first on Gamingo News.