France was reportedly mulling over following in the footsteps of other markets and increasing its gambling tax further. While this didn’t happen, the industry is not completely out of danger yet.
The Latest Bill Did Not Include a Tax Hike Proposal
Financial expert Les Echos had suggested that the 2025 Social Security Financing Bill would include gambling tax changes. The publication suggested that the government plans to use the extra proceeds to boost social security in the country.
The bill, however, was tabled yesterday and included no such measure. While this might be a relief for operators, they should not rule out the possibility of a tax increase down the line.
France, for context, already has the highest GGR tax in Europe and is taking a huge cut of operators’ revenue. Increasing the tax would have an additional strain on multiple sectors, especially horse racing and sports betting which already pay huge taxes.
As a result of the reported tax hike, FDJ, France’s national lottery operator, saw its stock experience a temporary decline.
While operators seem to have avoided a tax hike for now, L’Autorite Nationale des Jeux had recently suggested that higher taxes would not be wrong since gambling is not an “ordinary service” and is therefore legal only by exception.
Speaking to Les Echos, Isabelle Falque-Pierrotin, chair of the ANJ, suggested that increasing the tax should be okay as long as it benefits public health.
UK Also Rumored to Be Mulling over Increased Taxes
In the meantime, a new report suggested that the UK is also considering a gambling tax hike. The report was met with mixed reactions, although it firmly dismayed the Betting and Gaming Council.
Grainne Hurst, CEO of the BGC, just commented on the matter, saying that the industry is already pressured as things stand now. She suggested that applying further financial pressure would hurt its ability to compete with the black market and would channel players toward riskier illegal companies.
Hurst pointed out that UK operators are already facing challenges from the regulatory shifts following the publication of the white paper and advised the government to exert moderation when it comes to regulation and taxes.
Other markets, meanwhile, have been increasing their gambling taxes despite the industry’s concerns.
