New taxation on gambling in France: online operators raise their voices
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20 Feb 2025 •
Reading time: 3 minutes At the start of 2025, the French government has announced a significant increase in taxes on online gambling operators. This decision, included in the Social Security Financing Bill, is designed to increase government revenue. However, it has met with strong opposition from players in the sector, who are denouncing the measure as unfair and potentially destabilising for the industry.
Details of the tax reform
According to the information available, the tax on online sports betting stakes would rise from 5.7% to 7.5%, while that on online poker would increase from 1.8% to 3%. This represents an average tax increase of 31% for operators. The government justifies this measure by the need to fund policies to prevent excessive gambling and combat addiction, while emphasising the strong growth of the sector in recent years.
Reactions from online gambling operators
The main players in the sector reacted strongly to this announcement. The French Online Gambling Association (AFJEL) has denounced an ‘unfair and disproportionate’ measure that could jeopardise the sector’s economic equilibrium. Operators warn that the increase could lead to job losses and a reduction in investment in the sector. Some are not ruling out leaving the French market if the measure is maintained.
In addition, increased taxation could encourage players to turn to illegal platforms, thereby escaping all regulation and protection. This situation would be counter-productive to the stated objectives of protecting players and combating addiction.
This tax increase comes at a time when online gambling operators are already facing difficult economic conditions. After a boom period during the pandemic, when online betting exploded, the sector is now facing a drop in demand and increased competition.
Comparison with La Française des Jeux
Nicolas Béraud, Chairman of AFJEL and CEO of Betclic, is sounding the alarm over the growing tax inequality between online gaming operators and the Française des Jeux (FDJ). The reform envisaged by the government would increase taxation on digital platforms by 4.4 points, compared with just one point for FDJ on its point-of-sale sports betting. The FDJ already benefits from a more advantageous tax regime, and this widened gap would increase the contribution of private operators to more than 59% of their turnover, compared with just over 42% for the former public monopoly.
FDJ is already forecasting a loss of €45 million by 2025 as a result of this tax increase, so other players in the sector could suffer even greater losses.
‘It’s a distortion of competition’, says Nicolas Béraud, pointing the finger at the position of the State, which owns 20% of FDJ. In the face of what he sees as unfair treatment, he warns that if this measure is adopted unchanged, AFJEL will take all necessary legal action to challenge the decision.
The increase in taxes on gambling is divisive. While the government sees it as a source of additional revenue, operators denounce it as a punitive measure that could weaken the entire sector. With economic, social and political issues at stake, the debate is far from over. One thing is certain: the next few months will be decisive for the future of gambling in France.