France's 2024 Gambling Recovery Faces Tax Challenges

In 2024, France's gambling industry witnessed a notable resurgence, recovering from the challenges faced over the previous two years. The latest data from France's gambling regulator, l'Autorité Nationale des Jeux (ANJ), highlighted a market that not only saw financial growth but also an influx of a broader demographic of players. However, this revival could be jeopardized by impending heavier taxation, which might erode operator margins and alter the sector's direction in 2025.

Market Growth and Active Player Engagement

Following two consecutive years of decline, the French gambling market in 2024 experienced a significant upturn. The gross gaming revenue (GGR) reached €14 billion, marking a 4.7% increase from 2023. The online segment was a major contributor to this growth, with its GGR hitting €2.6 billion, a 12% rise year-over-year. Within the online sector, sports betting was particularly notable, contributing €1.8 billion after a 19% increase. The number of active player accounts (APAs) also saw an upward trend, indicating heightened user engagement across gambling platforms. The ANJ reported that APAs reached 5.7 million in 2024, marking an 11% increase from the previous year. Specifically, sports betting APAs increased by 13%, poker by 11%, and horse racing by 4%. This was a reversal from 2023, which saw a 3.9% drop in APAs and a 7.3% decline in unique players. FDJ United, a significant player in the market, reported over €7 billion in GGR last year, reflecting a 6% rise. Meanwhile, PMU managed to maintain its player base despite a slight loss in market share. These trends underscored France's position as one of Europe's leading gambling markets, ranking fourth on the continent according to the ANJ.

Demographic Shifts and Marketing Strategies

A significant change observed in 2024 was the increased participation of younger and female gamblers, especially in sports betting. The ANJ noted that 30% of all sports betting participants were aged 18 to 24. Additionally, female engagement in sports betting saw a 14.5% rise, reaching 500,000 players. This increase was attributed to the greater visibility of women's sports and a 'catch-up effect.' Among female bettors, the largest group was aged 25 to 34, with 174,340 players, followed by 18 to 24-year-olds at 142,902, and 35 to 44-year-olds at 96,480. Despite the growth in player engagement, concerns have arisen regarding the sustainability of this momentum, particularly in relation to the operators' expanding promotional strategies. Even without major international sporting events in 2025, operators have informed the ANJ of plans to increase advertising budgets by 11%, projecting promotional spending and player bonuses to reach approximately €695 million by the end of the year. In its annual report, the ANJ cautioned, 'The dynamics of the online market are the result of the aggressive commercial policies implemented by operators. This is marked by an increase in budgets dedicated to commercial communications, the maintenance of a high level of financial rewards and the deployment of cross-selling strategies between the different segments.' Consequently, the regulator has urged online operators to reassess and reduce their 2025 promotional expenditures to mitigate potential risks for players.

Tax Reforms and Future Implications

While 2024 showcased a robust recovery for the gambling industry, looming tax increases set to take effect in July 2025 could hinder this progress. France's 2025 budget proposes higher gambling tax rates and social security contributions across various gambling verticals. For online sports betting, social contributions will increase from 10.6% to 15%, and retail sports betting rates will rise from 6.6% to 7.6%. A new 15% tax on commercial communication spending by online sports betting operators is also planned to take effect, which the ANJ acknowledges could affect advertising investment in the second half of 2025. FDJ United disclosed that it paid nearly €45 million in taxes in 2024 and anticipates a larger impact this year. François Riahi, CEO of Banijay Group (which owns Betclic Everest Group), criticized the policy during the company's full-year earnings call, labeling the tax measures as 'anti-competitive.' The company has indicated its intention to challenge these changes, estimating a €20 million tax burden in 2025. As the industry navigates these fiscal and regulatory challenges, the critical question remains whether the rebound experienced in 2024 can endure the pressures of the upcoming changes. Source: BILAN DU MARCHÉ DES JEUX D’ARGENT ET DE HASARD 2024, anj.fr. By GamesAndCasino