France’s gambling industry has shown steady growth in the first half of 2024, with gross gaming revenue (GGR) increasing by 3.8 percent to $6 billion compared to the same period last year. However, this growth comes against the backdrop of potential tax increases that could significantly impact the industry’s future profitability.

Growth of France’s gambling GGR

France’s gambling GGR increased by 3.8 percent in the first half of 2024, reaching $6 billion. This growth is largely due to the strong performance of FDJ (Fran?aise des Jeux), France’s national lottery operator, and the booming online sports betting market. FDJ recorded a 5.5 percent rise in its GGR, while online sports betting operators saw a significant 10.5 percent increase.

FDJ has been one of the key players in driving the growth of the French gambling market. The company saw its lottery revenue increase by 5.5 percent to $3.82 billion, contributing substantially to the overall growth of the sector. FDJ’s growth has been fuelled by strong lottery sales, including draw and scratch games, which grew by 4 percent to $3.17 billion. Additionally, new acquisitions, including ZETurf and Premier Lotteries Ireland (PLI), helped boost the company’s GGR by 14 percent to $667 million.

Online sports betting has emerged as another major contributor to France’s GGR growth. The sector experienced a 10.5 percent rise in GGR to $1.42 billion in the first half of 2024, driven by a 24 percent increase in betting stakes, which reached $5.68 billion. The Euro 2024 football tournament and strong performances by French clubs in the Champions and Europa Leagues played a significant role in this surge in betting activity.

Despite the overall growth in GGR, not all sectors performed equally well. Horse racing tote betting, while seeing a 6 percent increase in stakes to $859 million, experienced a 2 percent drop in GGR, marking its first decline since the first half of 2022. Online poker fared slightly better, with a modest 2 percent rise in GGR to $280.52 million, supported by an 11 percent increase in active player numbers to 1.5 million. However, these results highlight the mixed performance across the industry’s various verticals.

Potential tax hike on gambling operators

France’s gambling operators could soon face a substantial tax burden increase as the government considers new tax measures. These proposals, to be discussed during upcoming parliamentary debates, could see taxes on the industry rise above 60 percent of GGR. Such an increase would affect all gambling operators, from online sportsbooks to FDJ and horse racing operators.

France’s gambling industry has demonstrated solid growth in the first half of 2024, driven by FDJ and online sports betting. However, the looming threat of increased taxes could cast a shadow over this progress, with industry stakeholders expressing concern about the potential long-term impact. As the second half of 2024 approaches, the outlook for France’s gambling industry remains mixed. While growth is expected to continue in some areas, the potential impact of the proposed tax increases could pose significant challenges.

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