A controversial tax shakes French sport
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22 Nov 2024 •
Reading time: 3 minutes The Social Security Financing Bill (PLFSS 2025) is the subject of strong criticism from French sports stakeholders. Through a joint press release, AFJEL (French Online Gaming Association) and the Sports Movement, which brings together federations, professional leagues and clubs, expressed their deep concern.
While the National Assembly rejected the controversial amendment to the Social Security Financing Bill (PLFSS 2025) at first reading, a wind of panic continues to blow through the ranks of the French sports movement. The amendment provides for a significant increase in taxes on online sports betting and the introduction of an additional tax on advertising and sponsorship expenses of approved operators.
This text, considered rushed and without consultation, threatens to massively reduce funding allocated to sport, already weakened by a reduction in public funding announced for 2025. As the Senate approaches its examination, sports federations, professional clubs and licensed betting operators are calling for mobilization to prevent what they call a “double penalty” and announce that it will be the final blow for sports funding, already under pressure.
A threat to sports funding
Each year, sports betting operators contribute €155 million to the funding of French sport. This financial windfall is essential for federations, leagues and clubs, whether professional or amateur.
Among the essential projects directly threatened are:
- The development of women’s sport.
- Prevention programs for young audiences.
- Aid for equipment for amateur clubs.
The funding of these initiatives, already under pressure, would risk collapsing if this tax reform came into force.
A request for dialogue and reflection
The signatories of the press release call on Senators to reject this amendment and to suspend any additional taxation project, while an in-depth impact study is conducted.
“It is imperative to assess the repercussions of these decisions, not only on the financing of sport, but also on the expansion of the illegal market”, argues Gil Avérous, involved in this mobilization.
Sports federations and leagues also call for an open dialogue between the State, betting operators and the sports movement in order to find balanced and sustainable solutions.
Among the signatories are flagship leagues such as football, rugby, handball and basketball, as well as emblematic federations such as volleyball and basketball. This mobilization illustrates the extent of discontent within the sports movement in the face of a reform perceived as a direct attack on their financial sustainability.
An involuntary boost to the illegal market
In addition to the threat to legal financing, this tax could paradoxically benefit the illegal sports betting market. Today, this market has more than 4 million players, surpassing the legal market in terms of the number of users.
“Illegal operators, who are not subject to any taxation, offer more attractive return rates to players than licensed operators,” explains a member of AFJEL.
By increasing the taxation of legal players, the government risks aggravating this phenomenon, weakening the efforts made to preserve the integrity of sports competitions and combat manipulation.
The Senate is now faced with a decision with serious consequences: preserve the resources of French sport or risk increasing its fragility. A major challenge that goes beyond simple tax considerations.