By: James Dollar
Many online gaming operators in France have been unduly hurt by the taxes imposed on them. These taxes have forced a number of providers to leave the French gaming market.
The biggest problem with the tax structure is that operators pay a share of their gross earnings instead of their net profit. This has created some challenges for many operators that operate on slim profit margins. Gaming providers have been forced to prohibit French players from participating in some of their popular tournaments that were among their most profitable offerings elsewhere.
Many players have also been turning towards illegal gaming sites which don?t usually pay the high operating tax and can afford to provide tournaments and other promotions.
The government has begun to realize that many of these issues are going to be a big problem for the online gaming industry. They want to encourage players to play on legitimate websites. The online gaming industry expects that they will change their taxation system this year.
Players are still concerned that French lawmakers will reintroduce the Aurelie Fillippetti bill. This bill would impose a large tax on players that earn more than 5,000 euros a year from online gaming. However, that bill was voted down in 2012 and most experts don?t expect that lawmakers will pursue it further.
The online poker industry believes that there will be more favorable changes to the French online gaming market in 2013. Players are excited by the fact that Full Tilt Poker is back in business and many famous online poker players have returned to the market. These changes may inspire lawmakers to make the changes needed to ensure there is a level playing ground for all gaming operators.
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