State-owned FDJ expects increased gambling taxes in France to impact its earnings. The company anticipates a €45 million (£37.4 million or $47.1 million) reduction in EBITDA this year. This is as the government finalizes tax, as well as social security increases for each gaming vertical.
Dated in February 14, FDJ said in a statement that it would likely pay an additional €90 million in taxes in France by July 2026. This is a year into the new tax rates.
FDJ stated that its 2024 gaming revenue in France totaled over €2.6 billion before the new tax takes effect. The company had already paid €4.4 billion in taxes.
The French government expects new tax requirements to take effect this July. They stem from a finance bill included in the 2025 budget, presented to policymakers last October.
In France, taxes are based on GGR or gross gambling revenue and differ significantly between verticals.
The majority of the approved increases are around 1%. For social security contributions, this will also be the case which are calculated separately to gambling taxes.
Yet, the increase is higher for online sports betting and racing levies.
The tax rate on lottery, as well as Euromillions games will jump 1% to 69% of GGR. On the other hand, CSG or social security contributions for lottery will increase to 7.2% of GGR.
For instant draw games, the new tax rate will be 56.5% of GGR. Additionally, social security contributions will increase to 7.2% of GGR.
Retail betting tax is going up to 42.1% of GGR together with a social security levy of 7.6% of GGR. Nonetheless, online betting will face the largest tax increase, with the rate rising from 54.9% to 59.3% of GGR. The government will raise the additional levy on GGR from 10.6% to 15%.
