Betting Giants Sound the Alarm Over Proposed Tax Increases
The French online gambling industry is bracing for a potential financial shock. Companies like Winamax and Betclic could soon face a staggering 60% tax burden following the latest Social Security Financing Bill (PLFSS). With mounting concerns over rising fiscal pressure, industry leaders have urgently requested a meeting with the Minister of Budget this week.
A Growing Tax Burden: Online Operators Cry Foul
France’s tax environment is becoming increasingly hostile for the online gaming sector. Already subject to significant levies, these companies now risk an additional €250 to €300 million in social contributions. The online betting industry argues that it is being disproportionately targeted compared to traditional betting operators like La Française des Jeux (FDJ) and the Pari Mutuel Urbain (PMU).
Currently, online betting platforms contribute nearly 54.9% of their revenue to mandatory taxes, a rate 14 points higher than their offline counterparts. This discrepancy, they claim, creates an uneven playing field and discourages innovation and investment in the sector.
A 50% Social Charge Increase and New Advertising Levies
The proposed law, emerging from the joint parliamentary committee, includes a significant increase in social charges—from 10.6% to 15%, marking a 50% surge. On top of that, a new 15% levy on advertising spending is set to further squeeze operators.
By the time all these measures take effect, the total tax burden could reach nearly 60%, compared to just 42.1% for traditional betting shops and only 20% to 25% in other European markets. Many in the industry view this as an excessive financial strain that could drive companies to reconsider their presence in the French market.
A Matter of Urgency: Will the Government Reconsider?
Industry representatives are pushing for an immediate discussion with policymakers, but time is running out. With the PLFSS legislative process nearing completion, the window for negotiation is rapidly closing.
Risks and Opportunities: What’s Next for Online Betting in France?
While the government sees this tax increase as a means to boost social security funding, critics argue it could cripple a thriving industry, forcing companies to cut jobs, reduce investments, or even exit the French market.
On the flip side, this reform might level the playing field for traditional betting companies, potentially boosting revenue for state-backed operators like FDJ. However, the long-term consequences remain uncertain: will this policy lead to higher consumer prices, reduced innovation, or even an increase in unregulated offshore betting?
For now, France’s online gambling industry is in crisis mode—waiting to see whether the government will stand firm or reconsider its approach before it’s too late.
The desperate need of French Government to find new incomes will potentially lead to the online casino legalization. Probably a bit late, though.
