French Gaming Industry Faces €1.6bn Tax Bombshell
The French government, led by Prime Minister Michel Barnier, is set to increase taxes on gambling companies to generate €500 million to alleviate the country’s debt burden.
French gaming operators currently pay a social contribution based on their GGR.
LISTEN TO THIS ARTICLE:According to French newspaper Les Echos, the government will unveil its plans to levy more taxes on the country’s gaming industry on Thursday. Land-based casinos, retail lottery and sports betting activities operated by Francaise des Jeux, and online poker operators will reportedly face slightly increased taxes.
However, online sportsbooks and horse race sites are expected to bear the brunt of the tax hike. The government aims to bolster the country’s social security system with the additional revenue from the new tax regime. It plans to raise €1.6 billion from the originally projected €1.2 billion to fund family health and social care services.
The government is considering two options to implement the tax changes: primary legislation or via amendments during upcoming parliamentary debates on the country’s budget.
French gaming operators pay a social contribution based on their gross gaming revenue (GGR). The tax rates differ across segments. For instance, retail sports betting is taxed 6.6%, while horse racing pari-mutuel operators pay 6.9%. Lotteries pay 8.4%, and physical slot machines and online sports betting operators face a 10.6% tax. Online poker’s tax would jump from 0.2% to 1%, while casinos with GGR over €1,500 face a 16.7% tax.
More Finance News
Tax Levy Adds to Industry Concerns
To further regulate the gaming industry, the government also intends to impose taxes on marketing-related expenses, such as media and advertising spending, customer rewards and bonuses, influencer marketing, and sponsorship budgets.
Reacting to the development, Casinos de France, which represents 200 land-based casinos, argues that the industry already pays €1.5bn in annual taxes (57% of GGR). The trade body warned that the proposed tax hike would jeopardize 45,000 jobs and potentially devastate Paris gaming establishments, putting 1,500 jobs at risk.
RELATED TOPICS: Finance
Latest News
Most Read
Must Read
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for French Gaming Industry Faces €1.6 Billion Tax Bombshell