The Senate hits hard with an increase in gambling taxes

The taxation of gambling in France is about to undergo a major upheaval. As part of the Social Security Financing Bill (PLFSS) for 2025, the Senate approved a series of measures aimed at significantly increasing taxes on gambling, whether physical or online. These decisions raise both hopes for better regulation and concerns about the economic repercussions.

Targeted but significant increase

Among the main measures adopted, the tax rates for land-based casinos, sports betting and online poker are particularly affected. For example:

• Slot machines will see their tax increase from 7.6% to 8.1%.
• Online sports betting will see an increase from 10.6% to 11.6%.
• Online poker is one of the hardest hit, with a levy on Gross Gaming Revenue (GGR) increasing to 10%, compared to just 0.2% previously.

These increases should generate €1.6 billion in tax revenue in 2025, compared to €1.2 billion in 2023, according to projections.

Health and social issues

Beyond the figures, this tax reform aims to address public health concerns.

“The rise of gambling is accompanied by an increase in the number of people suffering from addiction, with serious consequences: over-indebtedness, isolation and psychological disorders.” Élisabeth Doineau, Senator

The revenue from these new taxes will be partly earmarked for the health sector, in particular to finance prevention programs against gambling addiction.

What will this increase be used for?

The increase in taxes on gambling has several concrete objectives. First, this additional revenue will strengthen the financing of the health branch of Social Security. A significant portion of the expected €1.6 billion will be devoted to prevention and treatment programs for gambling addictions, in order to better support vulnerable people.

In addition, this increased taxation will help finance awareness-raising actions and set up mechanisms to discourage excessive practices, particularly among young people and disadvantaged populations.

Finally, the government also hopes to use part of these funds to support regulatory initiatives aimed at cleaning up a growing sector, while maintaining a competitive and fair economic framework.

A worried industry

On the side of gambling operators, the pill is hard to swallow.

“This tax increase could reduce the competitiveness of the sector and encourage players to turn to illegal platforms.” 

Overall taxation, which could be around 60% of the GGR, is seen as a brake on the dynamism of the market, which nevertheless reached a record of 13.4 billion euros in 2023.

In addition, certain segments, such as horse racing betting, benefit from tax exemptions to preserve their sectors, which has given rise to criticism of unequal treatment.

Sports betting at the heart of the debates

Sports betting, whether online or physical, has been a particularly sensitive subject. An amendment limited the tax increase to 1%, compared to the 4.4% initially envisaged, in order to protect partnerships between operators and sports organizations, which have been further weakened by the health crisis.

But this decision is not unanimous. Green senator Thomas Dossus denounces these platforms as parasites, accusing their aggressive marketing of targeting vulnerable populations.

“These platforms promote addiction and contribute to toxicity in the sports world, particularly through the cyberbullying of players.” Thomas Dossus

A project still pending

Although the Senate has adopted these measures, nothing is final yet. The bill must now be examined by the National Assembly, where amendments could still modify or adjust the provisions voted on. This crucial passage could be an opportunity for deputies to take into account the concerns of the various stakeholders, whether they are gaming operators, associations fighting addiction or local elected officials defending exempt sectors, such as horse racing betting.

This final stage will be decisive in confirming, adjusting or rejecting these tax increases. Thus, the die is not yet cast, and the upcoming debates promise to be just as intense as those already observed in the Senate.