Industry leaders back idea of simpler French gambling tax amid debate on online casino
CEOs from three major French gambling operators made their case at a Senate Finance Committee hearing.
France.- Leaders from three French gambling operators have called for the government to simplify gambling tax and to regulate online casino gaming. Barrière Groupe CEO Grégory Rabuel, Betclic CEO Nicolas Béraud and FDJ United CEO Stéphane Pallez put their views to a Senate Finance Committee hearing.
All three told general rapporteur Jean-François Husson that they were open to the idea of a single unified tax on gross gambling revenue to replace the current system of various tax rates on different types of gaming products. Pallez described the gambling tax hike introduced this year as “counterproductive”, claiming the company will see zero growth for the first time since 2019.
She suggested that the hike had hit investor confidence and would lead to staff reductions, while the state would actually take less money. Béraud, who is also the president of the online gaming trade association AFJEL, said that the tax rises had also harmed the online sector and that some smaller operators would close unless there was a rethink.
Online casino in France
While France has licensed online sports betting and poker, online casino gaming in France remains unregulated. Proposals to introduce legislation this year were postponed after land-based casino operators raised concerns. The potential for cannibalisation of land-based casino business was brought up again at the hearing along with debate on channelisation.
Grégory Rabuel, who is also president of Casinos de France (CdF), said land-based casino operators remained largely opposed to proposals for the legalisation of the vertical, claiming that it could lead to a loss of 25 per cent of revenues and 15,000 jobs. However, he said CdF would take part in any legislative process to defend its members’ interests.
Béraud defended calls for regulation, suggesting that the vertical already exists albeit unofficially. He argued that land-based casinos continued to grow and suggested that if online casino gambling was going to have an impact it would have already happened.
“There are no reasons why we can’t do it,” he said. “All European countries have done it, with a few exceptions, so we have to do it because the status quo is a lose-lose situation for everyone. It’s a loss for the state, which loses between €1bn and €2bn in tax revenues. It’s a loss for the regulator, which is not fulfilling its role of protecting players. It’s also an opportunity for physical casino operators to develop a new business that is currently being run by offshore companies.
“I know that some casino operators are in the process of building skills in this area. So that means they believe in it. It’s common sense. Maintaining the status quo and waiting every year means billions go abroad, with millions of players at risk and the weakening of an industry that is at the limit because of being overtaxed.”
