French regulator calls for tax reform of “fragile” gambling industry

French regulator ARJEL has championed calls for a reform of the betting tax system to help the “fragility” in the French online gambling market.

Sports betting operators are currently taxed at 5.7% of turnover, but proposals are on the table to change this to be based on gross gambling revenues.

Releasing its latest revenues figures for the fourth quarter of 2018, ARJEL said: “The result of this sectoral analysis show that a relative fragility remains: the market could be lifted by a reform of the tax base.”

Qualifying its stance, the regulator said this would be an “important factor in bringing the sector in line with its European partners”.

Sports betting revenues in France grew by 32% year-on-year during Q4 2018, buoyed by an increase in bettors following this summer’s World Cup.

Revenues for the last three months of the year topped €215m, rising from the €163m reported during the same period of 2017. Total sports betting revenues for 2018 rose to €691m, up 46% from the €472m reported during 2017.

The number of sports bets placed during the entirety of 2018 topped €3.9bn, up 56% on 2017s figures and the largest increase since the French regulated market began in 2010.

Over 546,000 betting accounts were active during the final three months of the year, rising 39% from the same period of 2017 when 393,000 accounts were active.

Combined poker revenues from both cash and tournament games amounted to €64.5m during Q4 2018, down from the €65.6m reported during Q4 2017.

However, overall poker revenues for the year were up 5%, rising to €258m in 2018 from a previous 2017 high of €245.4m.

Revenues from betting on horseracing grew for the second year in a row, rising 4% to €256m during 2018 from the €245m reported during 2017.