The French National Gambling Authority (ANJ) has provided an update on the progress made by licensees in meeting compliance duties, particularly in light of forthcoming tax reforms. The authority reviewed the “action plans” submitted by French gambling operators, which outline steps to address financial risks and regulatory obligations.
2024 Compliance Achievements
Most licensees have adhered to the compliance guidelines issued in 2024, marking a notable improvement in overall regulatory practices. The ANJ highlighted progress in anti-fraud and anti-money laundering measures, with a key focus on enhancing the detection of irregular behavior within customer accounts. Operators have strengthened their ability to identify anomalies, which is critical for preventing financial crime. Additionally, there has been a notable increase in resources allocated to compliance activities, both in terms of personnel and finances.
Internal controls have also improved, particularly in the quality of reports submitted to TRACFIN, the French financial intelligence unit. This enhancement reflects a more structured approach to monitoring and reporting suspicious activities. The ANJ welcomed these developments, which are seen as crucial for the integrity of the sector.
Progress and Ongoing Improvements
The ANJ introduced a personalized follow-up process in 2024, which included two compliance support meetings to guide operators through the implementation of their action plans. These meetings took place in spring and autumn 2024, helping operators improve practices related to detecting atypical behaviors, resource management, and internal controls. Some operators have proactively increased the number of compliance staff and enhanced their training programs. Additionally, improvements were made to alert systems to better identify potential risks.
However, the ANJ noted that further efforts are needed in refining “alert engineering” and adapting risk strategies. Operators have committed to reviewing their alert systems to ensure they align with the specific risks faced by each business.
ANJ’s Agenda for 2025
Looking ahead to 2025, the ANJ has outlined expectations for operators to further strengthen their compliance frameworks. The authority has called for enhanced action plans and more robust controls, especially concerning exclusive rights. Vigilance in business relationships remains crucial, and the ANJ is urging operators to improve their alert systems in line with their specific risk profiles. Ensuring the quality and accuracy of TRACFIN reports is also a priority.
The ANJ aims to foster stronger cooperation among key public stakeholders, including TRACFIN, the Budget Directorate, and the Treasury, to enhance efforts in combating money laundering and terrorism financing. This collaborative approach is expected to improve information-sharing and joint interventions.
Upcoming Tax Reforms
French operators are also preparing for significant tax changes set to take effect in July. The new tax framework, authorized by Prime Minister François Bayrou, will increase taxes on Loto and Euromillions games from 68% to 69% of gross gaming revenue (GGR). Additionally, taxes on online sports betting will rise from 54.9% to 59.3% of GGR. A 15% tax will also be introduced on marketing and promotional expenditures, which must be reported to the ANJ for approval.
Major operators, including FDJ United and Betclic, are adjusting their financial forecasts to account for the increased tax burden. FDJ United, France’s largest operator, estimates a €50 million impact, while Betclic anticipates an additional €20 million reduction in EBITDA results.
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