France’s gambling sector grows in 2024, but tax hike looms
France’s gambling sector shows growth indicators as younger players have entered the market and female participation in sports betting has risen, according to 2024 player activity and revenue data from the l’Autorité Nationale des Jeux (ANJ).
In its 2024 market review the ANJ insisted the sector was showing signs of “vitality” following two consecutive years of revenue decline for active player accounts (APAs)
In 2024 APAs increased 11% year-on-year to 5.7 million. ANJ said that trend was seen across a number of verticals, with player accounts in sports betting up 13%, poker up 11% and horse racing receiving a 4% bump.
This was compared to APAs falling 3.9% year-on-year in 2023, while uniques were down 7.3% during the 12-month period.
In terms of revenue, overall GGR for 2024 hit €14 billion ($15.8 billion), up 4.7% year-on-year.
Online GGR accounted for 18.6% of the total gambling market, at €2.6 billion. This marked a 12% increase on the previous year. This was driven by a 19% increase in online sports betting which reached €1.8 billion. Betting accounted for 69.2% of the total online market.
Female participation in sports betting rises
The ANJ has noted a significant uptick in female gamblers in the sports betting segment.
Female participation in sports betting increased by 14.5% to reach half a million players in 2024. The total number of sports betting players increased 8.5% to 2.8 million.
The ANJ stated the increase in female players is in part due to increasing coverage of women’s sports competitions and a linked “catch-up effect”.
The largest age demographic of female players was 25-34, which stood at 174,340 players in 2024. The 18-24 age range was 142,902 players and 35-44 was 96,480.
Looking more broadly at all genders, betting participants aged between 18 and 24 accounted for 30% of the segment in 2024.
France’s gambling promotional spend
As player activity and revenue rise, the French regulator warned player risk could increase in 2025, as operators have outlined increased advertising budgets for the year.
Despite no major international sports events planned this year, operators have signalled an intent to raise marketing spend.
Operators are required to report their marketing spend plans to the regulator at the beginning of each year.
In January, the ANJ called on the online sector to review and bring down its promotional spending in 2025. This was after operators reported marketing spend would likely increase 11% across the sector.
This is due to hit roughly €695 million ($724 million) by the end of 2025. This figure accounts for both marketing spend and player bonuses.
“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,” the ANJ stated in its 2024 market review.
Incoming tax increases
While the ANJ has pointed to a fresh market “vitality” in 2024, this may falter as new tax rates come into effect this year.
FDJ United stated in its full-year results that its French tax bill hit almost €45 million in 2024. Group revenue for the year came in at €3.07 billion, up 16.9% year-on-year. It expects an even higher impact in 2025.
In France, operators are due to pay higher tax and social security contributions as of July. These were set out in a finance bill included in France’s 2025 budget.
France’s gambling tax rates are based on GGR and differ between verticals. Operators then pay a separate social security contribution, which will increase across all verticals.
As part of the social security payments, online sports betting contributions are being increased from 10.6% to 15%. On-premises sports betting contributions are moving from 6.6% to 7.6%.
The ANJ acknowledged that gambling taxation could have an impact on the 2025 market.
“It will be important to determine whether the new 15% tax on commercial communications expenditure by online sports betting operators will have an impact on the actual amount of investment made in the second half of the year,” the regulator said.
Betclic Everest Group owner Banijay Group CEO François Riahi told analysts in its full-year 2024 results, the tax increases in France are “anti-competitive”. The company plans to contest them with the authorities. In its results published on 6 March, it estimated it would face a €20m impact from taxes in its 2025 results.