alarmed by a proposed tax, the horse racing industry cancels races on Thursday

This is an extremely rare decision: the horse racing industry is canceling the races scheduled for Thursday, November 7 to accompany a strike and a demonstration in Paris by trotting and galloping organizations. The latter are protesting against a proposed increase in taxation on betting, despite the assurances given by the Minister Delegate in charge of the budget, Laurent Saint-Martin.

The only precedents for the cancellation of races in France date back to the world wars and more recently to the Covid period.

The industry was alarmed last week by a government amendment to the Social Security financing bill (PLFSS) providing for an increase in taxation on games and betting, particularly horse racing. Laurent Saint-Martin, declared Sunday that he “don't wish[ait] not “ that the horse racing industry be taxed and, the next day, the amendment was rejected by the National Assembly.

But, for the sector, the threat of increased taxation has not been ruled out. “Although the government's amendment aimed at increasing taxation on horse racing betting has been rejected, it is essential to maintain pressure on the government and elected officials”declare the France Galop and Société du trotteur français federations in a statement sent to Agence France-Presse on Wednesday.

“This subject risks being presented again to the Senate or at any other time in the budget adoption process and races should not be a budgetary adjustment variable”they continue. “It is essential to make it clear to the entire political class, through a strong mobilization on Thursday, that we will not give up because our jobs are at stake”add the organizations.

“We need (…) the equine industry”

The sector plans to organize a demonstration in Paris on Thursday afternoon, between Place Denfert-Rochereau, in 14^e arrondissement, and Place Vauban, behind Les Invalides. If, for security reasons, the demonstrators will not travel on horseback, there will be a few horses on site, notably with the Italian trainer Mario Luraschi.

On Thursday, there should have been around 25 races at three racecourses, which will therefore be closed, one « effort » which the sector estimates at 3 million euros.

The amendment provided for an increase in the tax from 6.9% to 7.5% on gross gaming revenue from horse racing bets placed in the physical network (PMU, racecourses) and from 6.9% to 15% for bets online. It also planned to increase the taxation of advertising and promotional offers from operators, the gross proceeds of certain casino games, online poker and physical sports betting (from 6.6% to 7.6%) and online. (from 10.6% to 15%).

“It is an amendment which makes it possible to harmonize taxation on gross gaming proceeds”to address in particular the most dynamic and the most addictive, explained Wednesday Laurent Saint-Martin, questioned on the subject by the deputy (Mayenne, Les Démocrates) Géraldine Bannier, during the question session to the government.

Recalling that “the PMU finances the agricultural life of our country to the tune of 600 million euros per year”the minister declared: “We need these players, the equine industry, and we want to protect it. » “We gave a favorable opinion to the sub-amendment allowing taxation to be stabilized at 7% and not beyond for physical or online horse racing betting. »

For her part, Géraldine Bannier estimated that “the current ecosystem is virtuous: 75% of the stakes are returned to players, 16% is used to finance the sector, keeps the breeders’ ecosystem alive, [des] coaches, [des] owners, [des] jockeys… »