The horse racing industry has expressed strong opposition to a government amendment increasing taxation on betting, arguing it threatens the livelihoods of farmers, breeders, and trainers. Organizations like France Galop and the FNCH contend that horse racing is not typical gambling but supports agriculture. The proposed tax hike, affecting both physical and online betting, comes amidst a decline in horse betting activity, raising concerns over job losses and financial stability within the sector.
The amendment overlooks the unique nature of horse racing betting, which plays a vital role in supporting the agricultural sector, according to a joint statement from France Galop, the Société d’encouragement à l’élevage du trotteur français (SETF), and the Fédération des courses hippiques (FNCH).
Following the backlash from land-based casinos, the horse racing industry has voiced its concerns regarding a proposed amendment to the budget. On Tuesday, October 29, industry representatives criticized the government’s ‘devastating decision’ to increase the taxation on wagers, a move that they argue endangers the livelihoods of numerous farmers, breeders, and trainers.
The horse racing sector is calling for the ‘immediate removal of the amendment’ pertaining to the social security budget, which fails to reflect the true nature of horse betting—distinct from traditional gaming as it sustains an entire agricultural industry, state officials were warned. This statement came from France Galop, SETF, and FNCH, emphasizing the need to reconsider this approach.
The amendment, introduced on Monday, includes a proposal to raise the tax rate from 6.9% to 7.5% for gross gaming revenue generated from horse bets placed within physical venues (like PMU and racecourses) and from 6.9% to 15% for online betting. Additionally, it seeks to increase taxes on advertising and promotional activities associated with various gaming operators, while also adjusting the tax rates for gross revenues from specific casino games, online poker, and both online and physical sports betting.
The industry warns of worsening conditions in light of decreasing horse betting revenue
An increase in taxation poses a significant threat to farmers, as it will lead to reduced income, resulting in a potential decline in operations and job losses within the sector. The industry has already been struggling due to a downturn in horse betting activity, and further reductions in funding sources are untenable. In response, the amendment’s proponents claim there has been ‘significant growth in the gambling sector over the past few years, thanks to the expansion of online platforms.’
As reported, the French gambling market is thriving in 2023, reaching a historic level of performance with gross gaming revenue totaling 13.4 billion euros, marking a 3.5% increase over 2022. In light of the rising trend coupled with an increase in individuals receiving treatment for gambling addiction, proponents of the amendment believe that raising social levies will enhance equity within the taxing system. They argue it would also yield additional funds for the healthcare sector, while helping to regulate the industry and mitigate addiction concerns.