France Revamps Gaming Taxation for 2020
Published January 8, 2020 by Lee R
France may be offering a revolutionary adaptation for taxation, to be seen in 2020.
France's gaming taxes will be calculated according to a new system for 2020.
GGR Not Turnover
France's 2020 budget bill amends gambling tax calculations to gross gaming revenue (GGR) rather than turnover.
The New Bill
The bill on the way to the National Assembly for ratification represents a shift away from a turnover-based model calls for taxes to change, with horse racing becoming payable at 19.9% of GGR; sports betting 33.8%, and online poker 36.7%.
Social Security Impact
Social security payments will now be based on revenue over turnover, resulting in further changes to rates. This amounts to a 6.8% GGR levy, 10.7% for sports betting; and online poker 4.1%.
Sports Betting's Extra Funds
Sports betting's further 10.7% levy will be allocated to the National Center for the Development of Sport.
New Tax Totals
With all taxes combined, operators will now pay 37.7% for horse racing; 40.8% for online poker; 55.2% for online sports betting and 44.5% of GGR for retail sports betting.
The Old System
The former system of player stakes on games had been levying 13.2% for online horse race betting; 7.1% for retail horse race betting; 9.3% for sports betting; and 2% for online poker, with a social security contribution of 1.8% for horse racing; 1.8% for sports betting; and 0.2% for poker.
Passing On the Benefits
The Senate seeks to enable operators and the state to “share the luck” by adjusting fluctuations according to the success of punters.
Prevailing Concerns
Both the Senate and ARJEL have in recent years expressed concerns with the current system.
New Projections
For 2020, the reworked budget projects a €586m gain from sports betting taxes; €420m from horse race betting taxes and €66m from poker taxes; in addition to €787m from taxes on casinos and €2.48bn from tax from recently privatized La Française des Jeux.
Outlook
If these adjustments pay off, a new trend could be set for the rest of the EU, so these results will certainly be monitored closely by the gaming industry.
