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The French Senate has approved amendment 134 to the 2025 draft Social Security Finance Act that would increase taxes on certain online and brick-and-mortar gambling activities, after a similar amendment that was leaked in October was scuppered after uproar.
According to changes to the bill made on Thursday (November 21), taxation on online sports betting will increase from 10.6 percent to 11.6 percent of gross gambling revenue (GGR), for the benefit of social security.
According to Diane Mullenex, a lawyer at Pinsent Masons, attempts were made by some politicians to push tax rates further.
“During the debates, an amendment limited the tax increase on online sports betting to 1 percent as, initially, the suggested amendment provided for an increase from 10.6 percent to 15 percent. The aim of this limitation to 1 percent was to preserve the sports partnerships developed by certain operators,” she said.
Taxes for online sports betting still include 33.7 percent of GGR to the state and 10.6 percent of GGR to the National Centre for the Development of Sport.
Online poker will now also be taxed at 10 percent of GGR for social security; currently, online poker is taxed at 0.2 percent of stakes.
A further 15 percent tax on the total spend on advertising has also been added to the bill. The levy takes into account publications costs, space purchases and financial bonuses given as an incentive to players.
Élisabeth Doineau, the rapporteur, said in parliament: “Several studies attest to a correlation between the intensification of advertising and the increase in the number of players.”
The changes will be applicable for the 2025 fiscal year.
In October, local national news broke the story that taxes would increase to raise revenue for France’s budget crisis.
The Senate will finish voting on amendments for the budget bill and adopt the final text on November 26.
At that point, according to Pinsent Masons, “the parliamentary shuttle between the two chambers (National Assembly and Senate) will then start. During that phase, this article can be modified or even removed.” That phase should end around December 21.
It is still possible that the text could be sent to the French Constitutional Council to evaluate its constitutionality. The council has the power to void articles partially or in their entirety. Any tax increase is not definitive until after the Constitutional Council, if it is called upon, has its say.
