Online gambling and betting: towards tougher taxation for large companies?

As part of the draft Social Security budget, which must be presented on October 10, the government plans to review social contributions on lotteries, games and online betting, with the aim of combating the risks ofaddiction among young people and the most vulnerable populations. This reform would thus make it possible to generate an additional 442 million euros for Social Security, which hopes to collect 1.17 billion euros in total.

According to the newspaper The Echoes, the reform would aim to adjust the bases and contribution rates for the different players in the sector, such as lotteries, casinos, online betting and circle games. Currently, companies pay contributions on “gross gaming revenue” (GRP), which is the difference between players’ stakes and winnings paid out. This rate varies depending on the game, from 6.6% for in-store sports betting to 16.7% for casinos.

online betting

The government’s plan would increase these rates, which would result in an increase in social security contributions for all sectors. Casinos would see an increase of 21 million euros, circle games 60 million, and lottery games as well as online betting would see their contributions increase by 138 million and 148 million euros respectively.

At the same time, social security contributions on sports betting would increase by 15% and by 4 to 5% for horse racing betting. Circle games, which until now escaped social security contributions, would see their contribution increase five times. In addition, a tax of 75 million euros on advertising expenditure could be introduced, directly benefiting Health Insurance.

It remains to be seen how the sector, which is already heavily taxed compared to the rest of Europe, will react to these measures.

For detailed analysis and comparisons of online gambling platforms, you can visit The Player’s Hideouta comparison and evaluation site which offers complete opinions on the different operators in the sector.

source site-121