France Considers Sweeping Changes to Gambling Taxes in 2025

A detailed report released on December 23, 2024, by the Cour des Comptes (Court of Accounts) and the Commission des Prélèvements Obligatoires (Commission on Mandatory Levies) proposes significant reforms to France’s gambling tax system. The recommendations aim to harmonize tax rates, introduce taxes on winnings exceeding €500, and increase taxes on gambling advertising to better regulate the rapidly growing sector.

Key Takeaways of the Proposed 2025 Gambling Tax Reform

• Taxing Winnings Above €500: Winnings exceeding €500 would be subject to a tax, estimated at 10-12%, across all types of games, including lotteries, sports betting, and casinos.
• Unified Taxation: The Cour des Comptes and the Commission des Prélèvements Obligatoires advocate for a standardized tax on Gross Gaming Revenue (GGR) and increased taxes on advertising, potentially reaching 10% for sports betting.
• Enhanced Regulation: The Autorité Nationale des Jeux (ANJ), the French gambling authority, would have expanded powers to combat fraud, protect vulnerable players, and ensure transparency for winnings over €500.

Current Gambling Tax System: Complex and Uneven

Varying Rules Based on Game Type

France’s gambling tax system is fragmented, with each segment subject to specific rules. The ANJ regulates various forms of gambling, including:

• Lotteries and scratch cards
• Sports betting
• Horse race betting
• Land-based casino games
• Online poker

Taxation can be based on total stakes or Gross Gaming Revenue (GGR), the difference between stakes and payouts. This leads to highly variable tax rates, ranging from 10% to over 50%, creating confusion for operators, players, and authorities.

Competition Hindered by Inconsistency

The Cour des Comptes highlights that France has over €15 billion in annual stakes (excluding payouts). However, the current tax structure, based on multiple laws and regulations, is considered unfair by some operators. Some face high tax rates on stakes, while others benefit from more lenient or exceptional regimes, leading to market distortions and hindering investment.

Key Elements of the Proposed Reform

The gambling sector is poised for significant change. The report from the Cour des Comptes and the Commission des Prélèvements Obligatoires recommends taxing winnings over €500, revising taxation based on GGR, and increasing taxes on advertising. The ANJ would also see its powers strengthened.

Here are the main proposed measures in detail.

Taxing Player Winnings Above €500

A key proposal is to systematically tax winnings exceeding €500. This would involve taxing lottery and other game winnings, impacting players accustomed to tax-free gains.

• A withholding tax of 10-12% (the exact rate is yet to be determined) on the portion of winnings exceeding €500. For example, a player winning €1,000 could be taxed on €500 (€1,000 – €500 = €500).
• Automatic reporting to tax authorities to combat evasion and money laundering and improve transaction traceability.

The Commission des Prélèvements Obligatoires estimates this measure could generate €200-300 million in additional annual revenue, targeting significant winnings without overly affecting smaller players.

Shifting Towards Gross Gaming Revenue (GGR) Taxation

To address rate disparities, the Cour des Comptes recommends generalizing taxation on Gross Gaming Revenue (GGR):

• Taxing operators’ actual revenue (what they keep after payouts) rather than total stakes.
• Unified rates: A proposed rate of 20% for smaller operators, potentially rising to 35% for larger operators with GGR exceeding €100 million annually.

Official projections suggest this simplification would stabilize tax revenue at around €1.5 billion annually for all gambling activities.

Increasing Taxes on Gambling Advertising

Another critical point is the rise in gambling advertising, particularly online. Operator advertising spending reportedly jumped from €240 million in 2018 to over €450 million in 2023.

• Sports betting: A new advertising tax could increase from 5% to 10% of advertising spending to curb excessive promotion around major sporting events.
• Lottery games: FDJ campaigns, traditionally focused on solidarity, would be partially exempt from this increase but could see their minimum rate rise from 4% to 6%.
• Online casino games: Experts recommend a 12% tax on advertising spending targeting the French public to better regulate a market deemed commercially aggressive.

The goal is to limit gambling promotion, control campaign expansion, and generate funds for addiction prevention.

Strengthening the Autorité Nationale des Jeux (ANJ)

The report also proposes increasing the ANJ’s powers, including:

• Increasing control staff (a 25% increase is mentioned) to better oversee online offerings.
• Increasing audits in collaboration with TRACFIN to identify suspicious financial flows.
• Encouraging data sharing between operators to better identify at-risk players or fraudulent behavior.

Impact on Different Types of Games

Lotteries (Française des Jeux)

The Française des Jeux (FDJ) could see its tax regime significantly altered. Moving to taxation on Gross Gaming Revenue (GGR), like other operators, starting in 2026. Winnings exceeding €500 would be subject to immediate taxation. A winner of €10,000 on a scratch card could have to pay between €900 and €1,200 in taxes.

Sports Betting

Sports betting enthusiasts would also be subject to the new tax on winnings over €500, in addition to the GGR levy. The advertising tax for this segment would increase from 5% to 10%. Operators fear a potential exodus of bettors to foreign-based sites with less stringent taxation.

Horse Race Betting (PMU and Competitors)

Some exemptions granted to PMU may end. PMU, which contributes €800 million annually to the horse racing industry, could see its special regime end. Horse race betting would be gradually integrated into the 20-35% GGR rate, with a deduction from winnings over €500. Some lawmakers advocate for maintaining a specific contribution to the equestrian world, potentially levied on the future advertising tax.

Online Casino and Poker Games

Land-based casinos, already subject to effective taxation exceeding 50%, could see their tax burden eased by the transition to a GGR-based system. For online poker, the tax on “rake” (the commission charged by the operator) would remain and be added to the new GGR tax, raising concerns about a potentially excessive cumulative effect. The 12% increase in advertising taxation could encourage some online casino players to turn to platforms based abroad, particularly in Malta or Gibraltar, known for their more lenient tax conditions.

Consequences for Operators and Players

For Operators

Industry professionals could soon face a significant increase in costs. A more unified but generally higher taxation risks directly affecting company margins. The shift to GGR taxation requires a major overhaul of IT and reporting systems, generating significant investment and resource needs. The combination of a new tax scale and a sharp increase in advertising tax raises concerns about a decline in operator investment in the French market.

For Players

A new tax threshold set at €500 would result in a direct deduction from winnings exceeding this amount, potentially dampening enthusiasm for certain jackpots or bets requiring a high stake. To compensate for the increased taxation, operators may reduce odds or promotional bonuses, making offers less attractive. In return, this evolution is accompanied by increased control to better combat fraud, money laundering, and addiction. New tools for detecting at-risk behavior should be deployed, helping to better protect players.

Implementation, Timeline, and Outlook

A Decisive Legislative Decision

The recommendations of the Cour des Comptes and the Commission des Prélèvements Obligatoires are not binding. However, the government could use them to build a bill in 2025 or 2026, depending on tax revenue targets (the Ministry of Finance hopes to recover between €1.5 and €2 billion per year through gambling). The political balance in the Assembly and the Senate, where the issue is divisive, and consultations with operators, who will lobby strongly to avoid a sudden surge in levies, will be key.

Europe is closely monitoring gambling taxation. Excessive taxation in France could discourage the establishment of legal operators and favor foreign competition. The report proposes exploring European cooperation to better harmonize regulation and advertising standards while intensifying the fight against illegal sites.

By proposing to systematically tax winnings beyond €500 and increase taxation on advertising, the Cour des Comptes and the Commission des Prélèvements Obligatoires are tackling two major levers: tax revenue and addiction prevention. By unifying taxation around Gross Gaming Revenue, they also want to make the system fairer and more transparent.

It remains to be seen when and how these avenues will be implemented. Operators fear an overly abrupt tax shock, likely to erode their margins and encourage some players to turn to the gray or black market. The government will have to arbitrate between the imperative of revenue, international competition, and player protection to forge a modern and balanced framework for a sector already weighing several billion euros in the French economy.

Stay ahead of the game in the licensed betting world – get the latest insights at LicensedBettingSites.com.