In a historic first for France, all horse races were cancelled nationwide on 7 November, as industry professionals rallied in Paris to protest against the government’s proposed tax increase on sports betting.
Leading jockeys, trainers, and industry stakeholders — including top jockey Christophe Soumillon — gathered in the capital to express their opposition. The cancellation of races on Thursday is estimated to have resulted in losses totalling approximately €3m.
The rally was organised in response to proposed amendments that would raise taxes on gross proceeds from horse racing bets.
These amendments propose increasing the tax rate from 6.9% to 7.5% for bets placed on the physical network (such as betting organisation PMU, or Pari Mutuel Urbain, and racecourses) and from 6.9% to a significantly higher 15% for online bets.
The legislation also seeks to raise taxes on operator advertising, promotional activities, and revenues from certain casino games, as well as from both physical and online sports betting.
Taxes on physical sports betting would rise from 6.6% to 7.6%, while online sports betting taxes would increase from 10.6% to 15%.
According to industry leaders, this shift would impose a projected additional tax burden of €115m on the sector.
Filling a massive budget deficit
The new taxes are part of the larger budget reform by French Prime Minister Michel Barnier in a bid to try and reduce France’s growing budget deficit. Barnier presented a budget package containing €20bn in tax rises and €40bn of cuts in public spending to head off the growing fiscal pressure.
The government claims that it must institute all these changes in order to stabilise the country’s finances. However, horse racing and gambling stakeholders argue that such proposed taxes can cripple their sectors.
An estimated 26,000 horse racing professionals representing 11 unions and associations paraded through Paris during the demonstration. Many argued increasing the financial burden on horse racing, a sector that supports thousands of jobs and generates substantial revenue, would drive bettors away from the industry.
The PMU, France’s largest betting operator, announced its horse racing bets turnover at €9.3bn for 2023. The tax proposals, if implemented, would likely lead to a substantial drop in that number.
Organisers of the protest have expressed concern that the new taxes would have far-reaching consequences. Industry leaders argue that the projected tax increase could discourage investment and push small operators out of business.
In addition, horse racing advocates maintain that the proposed measures would ultimately do more harm than good. They could potentially drive bettors to unregulated platforms or deter interest in the sport altogether.
The end result would be considerable shrinkage of the sector. This would impact not only betting operators but also jockeys, trainers, breeders, and other professionals who rely on horse racing for their livelihoods.
Deliberations begin
The tax proposal is moving through a lengthy legislative process in the French parliament. Debates in both the Assemblée Nationale and the Senate are expected to continue until mid-December.
As the budget faces scrutiny and possible adjustments, it remains uncertain whether the government will succeed in passing the proposal in its current form.
Adding complexity to the situation is France’s consideration of launching online casino. This proposal has also generated its own wave of controversy.
While online betting on horse races, sports, and poker is currently allowed in France, the government has traditionally restricted online casinos.
France’s existing gambling industry, primarily centred around the PMU network and other regulated venues, has expressed concern that further online expansion could destabilise traditional betting channels and weaken the entire ecosystem.