Casinos in France: concerns raised over government tax plans
There are fears that government tax plans could risk the future of land-based casinos and gaming halls.
France.- Casinos de France, which represents France’s 200 land-based casinos, has warned that a planned tax hike could put businesses in jeopardy. It said the move would make French casinos the “most heavily taxed sector” in Europe.
The French prime minister Michel Barnier aims to raise €500m to help reduce France’s national debt. According to Les Echos, a package of tax measures will be announced tomorrow (Thursday).
Casinos de France said its members already pay over €1.5bn in taxes, representing around 57 per cent of GGR, and that the rate is a heavier burden than that imposed on huge tech companies like Google and Amazon.
It argues that the planned measures would jeopardise the future of the 45,000 jobs sustained by the sector, with the introduction of a tax on the GGR of Parisian gaming halls likely to cause many to close. That alone would put 1,500 direct jobs at risk.
The group’s president Grégory Rabuel, CEO of Barrière Groupe, said: “The increase in taxation would worsen an already difficult situation for our sector, which is the most heavily taxed in Europe”
It’s expected that sports betting, online poker and the lottery offering of Francaise des Jeux will also be hit in a bid to raise an extra €1.6bn from the gambling sector. Horseracing tote betting is expected to be hit hard, with the tax on GGR to rise to 10 per cent for retail bets.
It’s expected that the government will raise the social levy on GGR from 8.4 to 9.2 per cent for lottery. Paris-based cercles de jeux would no longer be exempt from social contributions and would be required to pay 10 per cent of GGR.
It’s reported that the government is also planning to tax marketing and advertising spending in the gambling sector as well as financial rewards and bonuses, influencer marketing and sponsorship deals. This would be likely to hit sports and horse racing betting in particular.
The government is expected to claim that the healthcare costs posed by problem gambling justify an increase in taxes on the sector. It argues that 6 per cent of gamblers are at risk of moderate or excessive addiction. However, there are no recent figures available.
FDJ completes acquisition of Kindred
Last week, the Paris Euronext-listed gambling operator La Française des Jeux (FDJ) completed its acquisition of the Swedish igaming group Kindred, owner of the Unibet brand. The deal makes FDJ the biggest gambling operator in Europe in terms of market value.
FDJ announced a €2.45bn bid for the Swedish online gambling operator last year. The French competition regulator l’Autorité de la Concurrence gave the move the green light last month, leading FDJ to bring forward the acceptance period for the deal from November 19 to October 2.
