Alarmed by proposed tax, horse industry cancels Thursday races

This is a very strange decision: the equestrian sector cancels the races scheduled for Thursday, November 7, to accompany a strike and a demonstration in Paris by trot and gallop organizations. The latter are protesting against a proposal to increase taxes on betting, despite the guarantees given by the Minister Delegate in charge of the budget, Laurent Saint-Martin.

The only precedents for race cancellations in France date back to the world wars and, more recently, the Covid period.

The industry was alarmed last week by a government amendment to the Social Security Financing Bill (PLFSS) that provides for increased taxes on gaming and betting, particularly horse racing. Laurent Saint-Martin declared on Sunday that “I do not wish[ait] No “ that the horse industry be taxed and, the next day, the amendment was rejected by the National Assembly.

But, for the sector, the threat of a tax increase has not been ruled out. “Although the government amendment aimed at increasing taxes on horse racing betting has been rejected, it is essential to keep 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 issue runs the risk of being presented again to the Senate or at any other time in the budget adoption process and elections should not be a budget 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 organizations.

“We need (…) the equine industry”

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

On Thursday there should have been about 25 races at three racecourses, so they will be closed, one ” effort “ that the sector amounts to 3 million euros.

The modification provided for an increase in the tax from 6.9% to 7.5% on gross gaming income from horse racing bets placed on the physical network (PMU, racetracks) and from 6.9% to 15% for bets on line. It also plans to increase the taxation of advertising and promotional offers of operators, the gross income of certain casino games, online poker and physical sports betting (from 6.6% to 7.6%) and online (from 10. 6% to 15%).

“This is a modification that allows taxation on the gross gaming product to be harmonized”to address in particular the most dynamic and the most addictive, explained on Wednesday Laurent Saint-Martin, questioned on the subject by the deputy (Mayenne, Les Démocrates) Géraldine Bannier, during the session of questions to the government.

Remembering that “The PMU finances the agricultural life of our country with 600 million euros per year”the minister declared: “We need these actors, the equine industry, and we want to protect it. » “We gave a favorable opinion to the subamendment that allows taxation to be stabilized at 7% and not beyond physical or online horse racing betting. »

For her part, Géraldine Bannier estimated that “the current ecosystem is virtuous: 75% of bets are returned to players, 16% is used to finance the sector, it keeps the breeder ecosystem alive, [des] coaches, [des] owners, [des] riders…”