French Poker Operators Relieved Over Revised Tax Proposals

by Jason Gorringe, Tax-News.com, London

30 July 2009

The French government has announced amendments to the structure of taxation on online poker, to enter into force in January 2010 when the government will open up the gambling sector to private sector competition following infringement proceedings initiated by the European Commission.

The government’s announcement to change the structure of its gambling tax on online poker has been met with open arms by prospective private sector operators preparing for the launch of their services next year. The industry warned that the government’s previous structure – with its 2% levy on player stakes – would have made its games uncompetitive. The newly proposed system will instead see a 2% tax on the value of pots, with the tax capped at EUR1 per hand.

Although the new system will be more favorable to those wishing to gamble in France than feared, it will still result in a significantly higher burden of taxation than that imposed by many other countries. In a statement, ChiliPoker Chief Executive, Alexandre Dreyfus, welcomed the cooperation the government had extended to operators, but warned that the revised structure is still "not ideal." He expressed hope that French legislation will evolve over time to facilitate growth in the French poker industry.

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