FDJ: No Tax Rise in French Social Security Budget
Groupe Française des Jeux (FDJ) says it doesn’t expect any increase in gambling taxes in the French government’s upcoming Social Security budget. This comes after reports and market jitters.
FDJ Reassures Investors Amid Market Volatility
FDJ’s shares fell 9.7% last week after reports said the French government might raise taxes on online gaming and betting from 2025 to boost the Social Security budget.
The tax rise was supposed to be in the Social Security finance bill (PLFSS). But FDJ says to its knowledge, there is no such tax measure in the bill. As of 7 October, FDJ’s share price has recovered a bit but is still down 5.6% over the past 5 days.
In a statement provided to Reuters, FDJ said, “To our knowledge, the PLFSS (Social Security finance bill), which will shortly be presented to the Council of Ministers, will not contain any tax measures concerning gambling.” This statement appears intended to calm investor nerves after last week’s market reaction.
French Gambling Market Growing
Despite this, the French gambling market is growing. The Autorité Nationale des Jeux (ANJ), the French gambling authority, reported 3% year on year growth in gross gaming revenue in April with casino up 8%. ANJ has also published its 2024-2026 strategy which is to reduce excessive gambling, fight against illegal gaming and improve the economic regulation of the sector.
FDJ has also completed its €2.5bn Kindred Group acquisition. This makes FDJ a major player in European gaming and a big player in the sector.
