If you're a fan of poker or sports betting, the question of taxation related to these activities can be confusing. So, is it necessary to declare winnings from sports betting or gambling?
According to data from the French National Gaming Authority (ANJ), in 2022, over 4.5 million French people placed at least one bet online, with a total of 8.2 billion euros wagered. Many gamblers, whether occasional or experienced, sometimes manage to make a profit. This raises the question of taxation, even if the rules in this area are not always clear.
Profits generally exempt from income tax
According to article 92 of the French General Tax Code (CGI), any profits made should be declared as non-commercial profits (BNC). However, this rule does not apply to winnings from games of chance (slot machines, roulettes, etc.) or sports betting.
Franck Demailly, a partner at AJE, has stated in the past that, barring exceptional circumstances, the habitual practice of games of chance, such as sports betting, does not constitute a profit-making activity within the meaning of article 92 of the CGI, due to the uncertainty surrounding the winnings.
In most cases, therefore, gamblers do not have to declare their winnings to the tax authorities, even if the amounts involved are substantial.
Gambling winnings that may become taxable
While winnings from sports betting and online gambling are generally not subject to income tax, there is one exception: if the Direction Générale des Finances Publiques (DGFiP) considers that " the hazard normally associated with games of chance can be reduced " by the bettor, this could result in taxation. This could apply to a seasoned poker player who generates winnings thanks to his strategy.
The tax authorities examine each situation on a case-by-case basis to determine whether a punter should be considered a professional. There is no fixed threshold at which a poker player must declare his winnings, nor is there a specific frequency of winnings to be respected - in short, it's a bit of a lottery.
As far as sports bettors are concerned, even those who are experienced generally have no active role in the game or sport on which they are betting. The DGFiP's analysis also remains based on criteria specific to each case. Regular and significant winnings could, however, attract the attention of the tax authorities, risking the transformation of a hobby into a professional activity, and therefore a taxable one.
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