France’s leading gaming operator, Française des Jeux (FDJ), is set to face a €45 million tax increase in 2025 as part of the government’s strategy to reduce its growing public deficit. This unexpected shift in fiscal policy has raised concerns within the gaming industry, which had initially been assured that no additional levies would be imposed.
The tax hike comes as France attempts to plug a €60 billion budget gap, with €40 billion in spending cuts and €20 billion in new taxes. The government’s approach includes higher corporate tax rates, increased levies on lottery and sports betting revenues, and redirected funds from gaming operations to support public programs, particularly in sports funding.
FDJ, which generated €2.6 billion in gross gaming revenue (GGR) in 2024, contributes over €4.4 billion annually to the state through various levies. However, with public debt exceeding 112% of GDP and a budget deficit projected at 5% in 2025, authorities argue that gaming operators must contribute more to economic recovery.
French casino operators worried about a distortion of competition and target the FDJ.
The proposed budget adjustments also target sports betting revenues to compensate for the €273 million cut in post-Olympic sports funding. As a result, operators fear a downturn in profits, while bettors could face higher fees and reduced odds payouts due to increased taxation.
The gaming sector is expected to push back against these changes, citing potential impacts on investment and consumer spending. However, with mounting fiscal pressures, the government remains firm in its approach. As FDJ and other gaming operators adjust to this evolving landscape, industry experts predict higher taxation could reshape the French gaming market for years to come.
