Rumored French Gambling Tax Hike Absent from Legislation

Speculation surrounding a potential French gambling tax hike has been proven incorrect as the anticipated increase was not included in the recently tabled 2025 Social Security Financing Bill. However, industry insiders and regulators caution that a tax hike could still be on the horizon, leaving operators and investors on edge. Learn more about the implications for France’s gaming sector and the possibility of future changes.

French Gambling Tax Hike Not Included in 2025 Legislation, But Future Increases Still Possible

Rumors of a looming gambling tax hike in France have been quashed, at least for now, as the 2025 Social Security Financing Bill was tabled in the National Assembly without any significant changes to the country’s gambling tax rates. This comes after speculation from French financial publication Les Echos, which had reported that the bill might include a plan to harmonize social security contributions across different gambling sectors.

France’s gambling market already faces one of the highest tax burdens in Europe, with operators subject to an approximate 60% Gross Gaming Revenue (GGR) tax. The rumored amendments had the potential to increase the financial burden on operators, particularly in the sports betting and horse racing sectors, where Française des Jeux (FDJ) is especially active.

Key Points:

1. No Immediate Tax Hike: The 2025 Social Security Financing Bill did not include the rumored increase in social security contributions for gambling operators.
2. France’s High GGR Tax: France already has the highest gaming taxes in Europe, with operators facing an approximate 60% GGR tax.
3. Future Increases Possible: Despite the current bill, there remains speculation that a tax hike could still be implemented in future legislative processes.

The French financial publication had previously warned that the harmonization of social security contributions could significantly raise the financial burden on gambling operators, particularly FDJ, which recently experienced a 10% dip in its share price following the rumors.

Comments from the National Gambling Authority

While the tax hike was not included in the bill, Isabelle Falque-Pierrotin, Chair of the National Gambling Authority (ANJ), stated that raising gambling taxes would not be unreasonable. She explained, “The gambling market is legal only by exception, these are not ordinary services. So taxing this market in a severe budgetary impasse and in the name of public health issues does not seem illegitimate.”

Her remarks suggest that while the current legislation does not impose an immediate increase, a future rise could be justified, especially in the context of France’s budgetary constraints and concerns over public health. Falque-Pierrotin also acknowledged that an increase in taxes could lead to further market consolidation, potentially impacting competition and smaller operators.

The ANJ’s finance team is currently modeling the potential impact of such a tax hike on the gambling market, indicating that the conversation around increasing taxes is far from over. Les Echos has also speculated that gaming tax amendments could still be introduced during the legislative process, keeping the possibility of future increases alive.

Broader Impact on the European Gaming Market

The French gambling sector is not alone in facing the prospect of higher taxes. Other European countries have already implemented increases, with the Netherlands and Sweden raising their gambling tax rates to 22% and 37.8% respectively. These changes reflect a broader trend across Europe where governments are looking to gambling as a source of additional revenue amid financial pressures.

The UK gaming industry has also seen its share prices dip following reports from The Guardian suggesting that the government may raise taxes on the sector. As countries across Europe continue to adjust their fiscal policies, gaming operators are preparing for potentially steeper taxes in multiple markets.

What’s Next for France’s Gambling Operators?

While the 2025 Social Security Financing Bill provides temporary relief for operators like FDJ, the long-term outlook for France’s gambling industry remains uncertain. Any future tax increases could lead to reduced profitability for operators and further market consolidation, as smaller companies struggle to cope with rising costs. As French regulators and policymakers continue to evaluate the sector, operators must remain vigilant and prepared for future changes.

The outcome of the ANJ’s impact study on potential tax hikes will likely play a key role in shaping the future of the gambling tax landscape in France. With operators already facing significant financial obligations, the government will need to carefully balance its fiscal needs with the stability of the gambling market.

While the feared French gambling tax hike did not materialize in the 2025 Social Security Financing Bill, the conversation surrounding increased contributions for gambling operators is far from over. With ANJ signaling that a tax increase could still be on the table, the gaming sector in France will need to monitor developments closely as the legislative process continues. For now, operators can breathe a sigh of relief, but future fiscal measures could still bring significant challenges to one of Europe’s most heavily taxed gambling markets.