The Council for Compulsory Levies published a report on December 23 concerning taxes on gambling operators, weeks after The government was censured following the draft finance bill. This draft was already aiming to raise taxes on operators.
- Re-codify the specific taxation borne by gambling and gaming operators within the Tax Code for Goods and Services.
- Replace existing levies on gambling operators with a single tax based on GGR (Gross Gaming Revenue), except for the tax on online horse race betting, the social security contributions (CSG) on winnings from slot machines, and levies on unclaimed or orphaned winnings. In short, a single tax—though not entirely.
- Streamline the applicable tax rates for gambling operators to align them with public policy objectives.
- Transfer the State’s share of gambling levies to the Social Security health branch.
- Introduce a tax on marketing budgets (amounting to €601M in 2022, including €350M in player bonuses, €214M in online/TV advertising, and €36M in sponsorships). The proposal includes a 25% tax on marketing expenses, with the tax base targeting player bonuses as well. The exemption for horse race betting should be eliminated.
- Evaluate the potential inclusion of gambling and gaming winnings in income tax (IR) and social contributions, net of wagers. If implemented, for income tax purposes, a new schedule would be created to include all net gambling winnings exceeding €500 per year, irrespective of whether the activity is habitual or not.
What now for iGaming Operators in France ?
Those recommendations won’t necessarily be followed by actions. Nevertheless, it shows how instable the sector is in France and that margins could be impacted.
What could it changes ?
Having more taxes on operator could lead to a raise of offshore gambling (as it is already the case with illegal casinos) since the margins would be reduced.
On top of that, putting into reality players taxes following what’s already in place in land-based casinos in France, would require software developments to track, collect and send the taxes to the government. Impacts on HR in Compliance, Finances and Legal can also be anticipated.
