Strong Growth in France’s Gambling Industry Amid Concerns Over Future Tax Increases
In 2024, the gambling landscape in France exhibited notable growth, attracting a younger audience and seeing a significant rise in female engagement, according to recent analysis from the l’Autorité Nationale des Jeux (ANJ).
The ANJ’s 2024 market review highlighted the sector’s revitalization, which follows two consecutive years of declining revenue from active player accounts (APAs). With a year-on-year increase of 11%, the total number of APAs reached 5.7 million. This positive trend spanned various segments, including a 13% rise in sports betting accounts, an 11% uptick in poker participation, and a modest 4% growth in horse racing.
In contrast, the previous year saw a decrease of 3.9% in APAs, with unique player numbers falling by 7.3%.
Overall gross gaming revenue (GGR) soared to €14 billion ($15.8 billion), marking a 4.7% year-on-year increase. Online gambling, which comprised 18.6% of the total market with €2.6 billion, experienced impressive growth driven by a 19% surge in online sports betting revenue, totaling €1.8 billion and representing 69.2% of the online segment.
Growth in Female Sports Betting Participation
The ANJ reported a significant rise in female involvement in sports betting, which surged by 14.5%, bringing the number of women participating to half a million in 2024. The overall player base for sports betting grew by 8.5%, totaling 2.8 million participants.
The rise in female bettors is partially attributed to increasing visibility of women’s sports and a resulting "catch-up effect." Notably, the majority of female players are aged 25-34, comprising 174,340 participants, while the 18-24 age group accounted for 142,902 players, and those aged 35-44 numbered 96,480.
In a broader context, players aged 18 to 24 made up a significant 30% of the betting demographic in 2024.
However, as the gambling sector flourished, the ANJ issued warnings regarding potential risks for players in 2025, as operators plan to enhance their advertising efforts despite the absence of major international sporting events. Operators must provide the ANJ with their projected marketing budgets at the start of each year.
This January, the ANJ urged online gambling operators to reassess and potentially lower their promotional expenditures for 2025, noting that proposed increases could lead to a total marketing budget of approximately €695 million ($724 million) by the year’s end, including player bonuses.
“The evolution of the online market is characterized by aggressive marketing strategies from operators that include increased spending on advertising, high financial incentives, and cross-promotional tactics,” the ANJ remarked in its latest review.
Economic Concerns with Upcoming Tax Increases
While there is a palpable sense of optimism regarding the gambling market in 2024, this momentum could be jeopardized by impending tax hikes taking effect this year.
FDJ United disclosed that it incurred nearly €45 million in taxes for 2024, with total revenue reaching €3.07 billion—a 16.9% increase from the previous year—and anticipated a more substantial tax burden in 2025.
As of July 2025, French operators will be subject to increased tax rates and social security contributions as delineated in the finance bill of the 2025 budget. The tax structure, based on GGR, varies across different verticals, with a rise in social security contributions affecting all operators.
For instance, contributions for online sports betting will escalate from 10.6% to 15%, while those for on-premises betting will see an increase from 6.6% to 7.6%.
The ANJ has acknowledged the potential implications of these tax changes on the market’s performance in the upcoming year.
“It will be crucial to assess whether the new 15% tax on marketing expenses within the online sports betting sector will influence real investment levels in the latter half of the year,” the regulator stated.
François Riahi, CEO of Banijay Group, which owns Betclic Everest Group, criticized the tax increases as "anti-competitive," expressing intentions to challenge this with the authorities. In their 2024 financial results, the company projected a €20 million impact on its profitability due to the tax hikes.
Overall, while the French gambling market shows promising growth, the looming tax changes could shape its future significantly, prompting stakeholders to adapt to a rapidly evolving regulatory landscape.