Late last month, politicians in France decided against the legalization of online gambling amid economic concerns. While iGaming is off the table, at least for now, the horse racing sector was alarmed by an amendment in the proposed 2025 budget that called for increases in gambling taxes.
Gambling Tax Hike Results in Protests
The budget amendment came at a time when Prime Minister Michel Barnier confirmed plans to decrease spending by €40 billion ($43.1 billion) while bringing an extra €20 billion ($21.6 billion) from taxes. Not unexpectedly, that was the plan considering France’s budget deficit and marks one way for lawmakers to address the issue.
But the government’s intentions caught the attention of the horse racing sector, which responded with an unexpected move. In light of the proposed amendment, which wasn’t a part of the initial 2025 budget, the country’s horse racing body confirmed the cancellation of meets planned for Thursday, November 7, 2024.
The response of the sector isn’t limited to the cancellation of the meetings as plans for a demonstration in Paris were also confirmed. In fact, by canceling the meets, the horse racing industry seeks to encourage even more stakeholders, including galloping and trotting organizations to join the protest of the proposed gambling tax increase.
First Cancelled Meets Since the COVID Period
The decision of the horse racing industry is surprising, to say the least. This is because the last time horse race meets were canceled in France was back during the COVID pandemic. Before that, such cancellations dated back to the World Wars. Undoubtedly, this is a testament to the importance of the matter and reaffirms the sector’s dedication to fight against tax increases which may have dire consequences.
Per local media reports, the cancelation of the meets on Thursday is evaluated at €3 million ($3.2 million). Not unexpectedly, sports bets on those meets won’t be accepted as the horse racing industry rallies in protest.
In a statement released on Wednesday, the France Galop and Société du Trotteur Français groups explained that while the amendment to increase taxation on horse-racing betting wasn’t approved, the sector needs to maintain its stance. The groups added that the taxation of gambling may be discussed further in the Senate or at some point in the budget approval process.
