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Online gambling body AFJEL joins calls for tax reform

Wednesday September 7, 2011 :   Online gambling body AFJEL joins calls for tax reform
 
Pressure is mounting for a revision of the tough French taxation regime applied to online gambling, with the relatively new action group AFJEL joining calls for a more realistic approach.
 
High tax is one of the main objections voiced by operators considering an application for a French licence. The 8.5 percent tax on turnover (ie all betting stakes) instead of on GGR makes it difficult for operators to turn a decent profit.
 
Several major internet gambling companies have already showed their disapproval of the high taxes imposed by the French government, with Ladbrokes, William Hill, Sportingbet, and Betfair among those that have eschewed operating in the French online gambling environment.
 
The national regulator, ARJEL, has made a submission to government which reportedly contains 65 proposals for improvement, among these a suggestion that taxation be based on Gross Gaming Revenue (GGR)* and be set at different rates by genre e.g. 25 percent for poker, 38 percent and 55 percent for sports betting and horse betting.
 
ARJEL is understood to have punted a return-to-player rate of 95 percent, an increase of 10 percent over the current requirement, in an attempt to improve the appeal of French games.
 
These proposals are in contrast to a flat 20 percent across all online gaming suggested by Deputy Jean-François Lamour of the Union pour un Mouvement Populaire (UMP), a centre-right political party, earlier this year. Lamour recommended a RTP rate no lower than 90 percent.
 
Industry observers see the proposals as an indication that the counterproductive effect of too onerous a tax regime targeting turnover has been taken on board by all concerned, and there is hope that the review on the industry scheduled for November will herald a more practical approach.
 
To some extent this appears to be supported by the ARJEL chief, Jean-François Vilotte, who has reportedly said that 'some' modifications might be achievable this year.
 
However, the Minister for Budget, François Baroin, has dampened optimistic predictions by asserting that the government will not be introducing tax reforms before the 2012 presidential elections, and that there are no immediate changes on the government agenda.
 
*GGR = amount wagered minus the winnings returned to players.

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Gambling News :

Is Gibraltar Out of Luck in US Tax Challenge - Gibraltar's challenge to the UK 15 percent point-of-consumption tax on online gambling operator revenues has already failed in the UK High Court, and it looks as if it may be rejected by the European Court of Justice too.

Quickspin are now available in Denmark - #quickspin The roll-out strengthens the long-standing partnership between the supplier and the operator, with Quickspin games already available on Vera&John’s websites around the world.

UCypher Launches - Indian entertainment and media entrepreneur Ronnie Screwvala has announced the formation of UCypher, an eSports tournament in which ten teams will compete.

Extreme Live Gaming In deal With Betsson - Extreme Live Gaming, a subsidiary of the Novomatic Interactive group, has announced a live dealer product deal with the Betsson online gambling group, with an initial launch planned for Betsson.com, followed by other brands in the Swedish group's portfolio.

Expansion Mode For BoyleSports - The Bambury premises are situated in Kildare, Meath and Dublin and will be refurbished and rebranded after acquisition, with the total of 31 staff remaining in employment..

Safecharge Q4-2016 - Online e-cash processing firm Safecharge, where Playtech's Teddy Sagi is a majority shareholder, released a trading update on its Q4-2016 performance Thursday, flagging record transaction processing volumes and revenues.

ASA Most Controversial Ads of 2016 - Paddy Power's penchant for advertisements that cause a stir saw the betting company mentioned twice in the Top Ten most controversial adverts of 2016 released by the Advertising Standards Authority in the UK Thursday.

Yggdrasi To Enter Italian Gambling Market - Yggdrasil’s Italian offering will include the company's collection of in-game promotional tools, BOOST, improving gamification, and the social sharing tool, BRAG. The company’s mobile product will also be available on its HTML5 iSense 2 platform.

888sport is the latest to join sports betting integrity body ESSA - Major operator 888sport is the latest to join sports betting integrity body ESSA with the company adding its customer base and betting market platforms to ESSA’s global anti-fraud alert and reporting system.

First partypoker live event to be held in Russia - Partypoker’s new live tour will kick off in Russia on March 24, 2017 at Sochi Casino and Resort in association with Club Poker Management. Online Day 1’s will start on partypoker on March 12, 2017.

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