France’s Senate has approved a controversial amendment to increase gambling taxes, signaling a potential fiscal shift that could impact local economies. Despite resistance from local leaders, the measure aims to tackle the country’s looming budget deficit.
Tax Hikes to Tackle Budget Shortfall
Faced with a €16 billion budget gap for 2025, French lawmakers are targeting industries deemed less favorable by public opinion: sweetened drinks, tobacco, and gambling. On Thursday, the Senate voted to include these tax hikes in the upcoming budget proposal. The move underscores a broader strategy to generate revenue without directly burdening the average taxpayer.
While the gambling industry is a significant focus, the decision also highlights its role in local economies. In certain regions, casinos contribute heavily to municipal budgets, prompting concern among local leaders about the unintended economic consequences of the tax increase.
Opposition from Local Governments
Mayors and other local officials have pushed back, warning that a gambling tax hike could disproportionately affect their communities. Casinos often serve as key financial pillars in smaller municipalities, where they fund public services and infrastructure projects.
Despite these warnings, the government appears committed to moving forward. Élisabeth Doineau, a senator championing the amendment, addressed these concerns by omitting horse racing bets from the tax changes—an area that had previously drawn strong opposition.
A Broader European Context
France isn’t alone in considering higher gambling taxes. In the United Kingdom, a similar proposal circulated ahead of the Labor government’s budget. However, Chancellor of the Exchequer Rachel Reeves stopped short of implementing a double-digit tax hike on gambling, reflecting hesitation over the potential economic ripple effects.
France’s decision to proceed with the amendment indicates a firmer stance. If approved by the Assemblée Nationale, these changes will likely become part of the final 2025 budget.
What’s Next for Gambling Taxes in France?
The proposal now moves to the French Parliament, where it will undergo further debate. While some lawmakers view this as a pragmatic solution to the country’s fiscal woes, others remain concerned about the long-term impact on local economies.
The gambling industry will be watching closely, as will municipal leaders who rely on casino revenues to sustain their budgets. The question remains: Can France balance its national budget without crippling local economies?
