In France, Reform The Taxation Of The Gambling Industry

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April 26, 2022
3 minutes

France’s senate adopted a bill on the budget for 2020. The document contains amendment relative to tax charges in the gambling industry. It is planned that under the new rules, the taxation will not be carried out on the turnover of companies, but on gross income (ggr).

In France, reform the taxation of the gambling industry

The bill will be transferred to the national assembly – before the document becomes a law, it must be supported by deputies of the lower house of parliament.

In connection with the change in the model of taxation rates will also be changed. Racing tax will be set in the amount of 19.9% ​​of ggr, for bookmakers – 33.8%, and online poker operators will pay 36.7%.

It is also planned that payments associated with the support of social projects will also be calculated when taking into account income, and not the turnover of companies. Thus, rack operators on the races will list 6.8%, bookmakers – 10.7%, and companies employed in the online poker segment, – 4.One%.

In addition, the online bookmaker segment undertakes to pay 10.7% of ggr in favor of the national center for sports.

To summarize new tax rates, it turns out that the branch branch will pay 37.7% as tax deductions, online poker – 40.8%, online bookmakers – 55.2%, and the ground segment of the sports betting – 44.Five%.

Previously, tax rates were applied to the total amount of money received to the company, based on player rates.

In the senate, it it believed that in this way you can level the factor «lucky players», at the same time, the authorities essure that depending on the success of users, tax rates can be adjusted.

Tax Rates Can Be Adjusted

Parliamentarians noted that during the old system in taxation, the money masses were participating, which the operator actually did not own. Means the fact that the operator pays users of winnings from the total amount accumulated as player rates.

The accounts chamber of france also noted the burdensomem of laws with a fairly high tax rate for gembling operations.

It is expected that, taking into account the modified legistation as tax revenues to the french budget will come €586 million from sports betting operators, €420 million from the branch branches on horse racing and €66 million from poker operations. At the same time, according to preliminary data, €787 million will be generated by the industries of terrestrial gambling institutions.

Recall that the positive dynamics of the development of the french online market in the first quarter of 2019 covered all segments with the exception of poker operations.

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