The new legislation aims at simplifying casinos tax regime and at introducing more "tax justice" in this regime. The objective of the new law is to increase the progressive nature of tax levies on casinos, thus partially shifting the tax liability to the most prosperous establishments. More specifically, the new law provides that:

  • the progressive rates and brackets of tax levies shall be adjusted based on the casinos income so that the tax liability of small casinos is reduced. This reduction would be compensated by the progressive rates applicable to the upper brackets (the range of the rates would vary from 6% to 83.5% compared to the 10% to 80% rates under prior legislation);
  • the amount of salary costs relating to the operating of table games shall be taken into account by implementing a rebate on the taxable base to which the table games graduated tax levy applies;
  • the additional deduction available for high quality artistic events shall be replaced by a reimbursable tax credit.

If the objective pursued by the new legislation is honorable in itself - let us remind that there are around 200 game establishments in France, an important fraction of which highly suffered from both the economic downturn and an accrued competition due to the opening of the online gaming market - it is nevertheless surprising that such a significant reform was implemented by the way of a parliamentary amendment whereas, as acknowledged by the finance commission, no study on its financial impacts has been carried out. The first estimations indicate that the State would incur a loss of €6.4 millions (partially compensated by the replacement of the additional deduction available for high quality artistic events with a tax credit), and that the local collectivities and casinos would benefit from an additional gain (€2.2 millions and €4.2 millions respectively). Nine establishments out of ten should note a diminution in their tax levies. It appears that the legislator rolled a dice with this reform whose financial consequences are not properly anticipated... The die is cast!