New taxes on online gambling in France: is the government jeopardising a strategic sector?

For French online gambling operators, July 1 marks a real regulatory shockwave, with the entry into force of a new tax system deemed ‘record-breaking’ and ‘unfair’ by industry professionals.

High tax pressure

Three key measures make up this reform: a drastic increase in the general social contribution on sports betting (from 10.6% to 15% of gross gaming revenue), a staggering rise in taxation on poker bets (from 0.2% to 10%), and a new 15% tax on advertising and sponsorship expenditure. In all, the total levy on operators’ turnover rises to 67.4%.

An unprecedented level in Europe, denounced as ‘unsustainable’ by the Association Française du Jeu en Ligne (AFJEL), which brings together the main licensed players in the market.

Some voices speak out 

At a recent Senate hearing, Nicolas Béraud, Chairman of AFJEL and founder of Betclic Group, did not mince his words. He pointed out that French operators are now the most heavily taxed in the world, with a levy level of over 60%, compared with 10-35% elsewhere.

The Autorité Nationale des Jeux (ANJ) was no different. Its president has publicly acknowledged that the profitability of licensed operators is already ‘very fragile’ and that this reform could ‘seriously or even very significantly’ weaken eight of the sixteen companies operating on the French market.

SMEs under pressure, giants under strain

The consequences of this new tax regime could be particularly severe for small operators, who are already faced with a constrained business model. 

Behemoths like Betclic and Winamax, regarded as the “tech champions” of the French gambling industry, could take the brunt of the blow… but at what price? A drastic reduction in their marketing, sponsorship and patronage spending is likely.

French sport on the brink

It is perhaps the world of sport that could suffer most quickly. The new 15% tax on advertising expenditure will have a direct impact on the partnerships that operators had with professional clubs… as well as amateur clubs.

Hundreds of clubs, hitherto supported through equipment grants, poster campaigns or sponsorship, could lose crucial funding. 

 Vincent Reynaert, marketing consultant in the online gambling sector:

‘While some countries, such as Spain, are banning shirt sponsorship by operators, this move in France will have to be accompanied by a real rethink, given that many professional sports clubs and sportsmen’s clubs are struggling to find sponsorship budgets. This tax will inevitably reduce operators’ ability to support them. It will even affect many amateur clubs that used to benefit from equipment or support programmes financed by operators. These “sponsorship” initiatives are very likely to disappear.’

The shadow of the illegal market is widening

Another feared perverse effect is a massive shift towards illegal supply. Less taxed, unregulated and often domiciled in digital tax havens, this unfair competition could become the big winner of this reform.

‘Ultimately, the effect of this unsustainable tax system will be to weaken the legal offer (which protects players and is controlled by the State) and to strengthen the appeal of the illegal offer (offshore and linked to organised crime) against which we must collectively fight!’ declares AFJEL.

A forgotten strategic sector?

Online gambling is not an epiphenomenon. In France, it generates around 11,000 jobs, spread between platforms, technical centres, customer services, marketing and IT. These jobs are often concentrated in major cities or in technology incubators.

By overtaxing this sector, is the government running the risk of weakening a strategic industry? This is the view of many professionals, who point to the key role played by these companies in the fight against cybercrime, the protection of personal data and the funding of addiction prevention campaigns.

What does the future hold after the shock?

The first half of 2025 will serve as a benchmark. The figures for the second half, expected in January 2026, will allow the real effects of the reform to be measured. The rate of migration to illegal sites, the reduction in marketing campaigns, the fall in advertising revenue in sport and any failures of French operators will be closely scrutinised.In the meantime, one thing is clear: this exceptional tax regime is jeopardising an entire ecosystem, from technology to public health and amateur sport.