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So far only Covid-19 and world wars have done it: the horse races scheduled for Thursday are cancelled. Announcement from the sector, to accompany the strike and demonstration of the trotting and galloping socio-professional associations. They are mobilizing against the increase in betting taxes, foreseen in one of the many amendments to the Social Security budget project. Even if the text is rejected by deputies, the industry fears that the issue will return to the Senate.
“It is essential to maintain pressure on the government and elected officialstake the France Galop and Société du trotteur français federations by storm in a statement sent on Wednesday 6 November. Purchases should not be a balance sheet adjustment variable.they continue. The industry had already done everything last week to denounce the “deadly choice” of the government to increase this tax. The amendment in question, presented on October 28, provides for increasing the tax from 6.9% to 7.5% on the gross revenues of horse racing bets placed in physical locations (PMU, racecourses) and from 6.9% to 15 % for online betting. .
It is part of a series of other amendments aimed at focusing more on the highly addictive gaming sector. French public health says sohorse racing betting affected 7.7% of players in 2019, far behind lottery or scratch card games (65% and 56%), sports betting (11%) but ahead of casino games (almost 6%). It is also planned to increase taxation on advertising and promotional offers of operators, on the gross proceeds of some casino games, online poker and physical sports betting (from 6.6% to 7.6%) and online (from 10, 6% to 15%).
Fears for employment
“An increase in taxation means a decline in income for farmers, and is a mechanical risk of decline in activity and loss of jobs,” he had then warned the horse racing industry, which he said “already in difficulty due to the reduction in horse racing betting”.
The text of the amendment, however, supports this “The French gambling market confirms its dynamism in 2023 […]. In a context where this trend is increasing, accompanied by the continuous increase in the number of people treated for an addiction problem, increasing social security contributions would improve the fairness of the tax system. It aims to a “increased revenue for the healthcare sector”, which would also contribute to “regulate the sector by limiting the consequences in terms of dependence”.
Asked about the topic on Nov. 3, during the show Sunday in politics on France 3, the Budget Minister, Laurent Saint-Martin, assured this “do not desire” an increase in these taxes. But the sector still intends to keep up the pressure. “It is essential to make the entire political class understand, through a strong mobilization on Thursday, that we will not give up because our jobs are at stake”sector organizations insist.
Their demonstration is scheduled for Thursday at noon in Paris. Protesters will not travel on horseback into the capital for security reasons. But according to the organizers there will also be some equines on site, in particular the Italian stuntman and equestrian trainer Mario Luraschi.
Time.news Editor: Thank you for joining us today. We’re here to discuss a pressing issue affecting the horse racing industry: the proposed increase in taxation on horse race betting as part of an amendment to the Social Security budget. Could you introduce yourself and explain your background in this field?
Expert: Absolutely, and thank you for having me. I’m John Dupont, an economist with a focus on the gambling and leisure sectors. I’ve worked extensively on policy analysis concerning taxation impacts on various forms of gambling, including horse racing, over the last decade.
Time.news Editor: Let’s dive right in. The proposed amendment aims to increase tax on gross revenues from horse race betting from 6.9% to 7.5% for physical locations and a staggering increase to 15% for online betting. What are your thoughts on this substantial rise?
Expert: It’s a significant jump, especially for online betting. The move to raise these taxes can lead to unintended consequences. This is a highly competitive market, and increasing costs for operators could translate to higher prices for consumers, potentially driving them away to unregulated or illegal betting options.
Time.news Editor: There seems to be a lot of resistance from the industry. Professional associations like France Galop and the Société du Trotteur Français have expressed deep concerns. Can you elaborate on the possible repercussions for the employment sector if this amendment is approved?
Expert: Absolutely. Increased taxation not only affects operators but also everyone in the supply chain—from breeders to trainers and even the staff at racetracks. If revenues decline due to reduced betting activity spurred by higher taxes, we could see layoffs and reduced economic activity within the sector. It’s a ripple effect that ultimately harms the industry and its workforce.
Time.news Editor: That certainly sounds troubling. The article mentioned that this is part of a broader strategy to focus on the highly addictive gaming sector. Given that horse racing betting has been identified as affecting 7.7% of players, do you think this strategy is effective or overly punitive?
Expert: It’s a double-edged sword. On one hand, targeting addictive practices in gambling is essential for public health. On the other, if the government pushes these taxes too high without considering the economics of the industry, it risks flattening what remains of the market. We need balanced approaches that prioritize responsible gaming while ensuring the industry can sustain itself.
Time.news Editor: In the context of public health, what strategies should the industry adopt to mitigate addiction risks while still thriving economically?
Expert: Education is key. The industry should invest in awareness campaigns about responsible betting practices. Additionally, implementing tools to help limit betting amounts, along with counseling resources for those who feel they may be struggling with addiction, can create a safer environment for both the industry and its consumers.
Time.news Editor: The fear of this issue being sent back to the Senate looms large over the industry. What do you think the next steps should be for the associations and stakeholders involved?
Expert: They need to mobilize their members and public opinion. Engaging with lawmakers to highlight the potential negative impacts of the proposed tax increases is critical. Demonstrations, like the recent strikes, alongside constructive dialogue about a potential compromise, could prove effective. Industry representatives must communicate their concerns clearly and strategically to avoid a detrimental outcome for all involved.
Time.news Editor: Thank you, John, for providing such insightful perspectives on this complex issue. It’s clear that the proposed taxation changes could have far-reaching consequences for the horse racing industry and beyond. We look forward to seeing how this unfolds in the National Assembly and beyond.
Expert: Thank you for having me. I’m hopeful that through dialogue and collaboration, we can find solutions that support both public health and a vibrant, sustainable horse racing industry.