French casino crisis
21
03.2018

The French casino industry in trouble

By Sophie Couard

The employers' association Casinos de France, assembled at a congress, has just sounded the alarm.

On Tuesday, March 13th, the employers' association Casinos de France, representing half of the companies in France, organized a congress in Le Touquet. At this event, the association seized the opportunity to raise the alarm, as the situation of casinos in France is currently quite difficult.

10 years in crisis

Since 2008, the big casinos in France have been experiencing more and more difficulties. Among others, the following factors contributed to this:

  • the global economic crisis,
  • the smoking ban in public places,
  • compulsory identity verification at the casino entrance,
  • the competition of online gambling websites.

Casino barriere deauville

Massive obligatory investments and higher taxes

To get out of this bad situation, the sector had to make massive investments. On average, almost 100 million euros were spent by all concerned every year in order to refresh their offering and to follow the new regulations. At the same time, casinos also suffer from higher taxes and increased CSG (Contribution Sociale Généralisée, Social Security). It is expected that 20 to 30 institutions will be in danger this year.

The smallest casinos are experiencing the greatest difficulties

Despite a rise in gambling revenues, half of the casinos are stagnating or declining.

The gross turnover of the games, which had declined by 25% between 2008 and 2015, is now slowly returning to growth. But this growth affects only half of the casinos and some of them are still not profitable enough. The concern therefore relates to all the others who are stagnating or even turning back. Last year, for example, 83 French casinos registered a decline in sales. In most cases, these were smaller casinos that cannot afford to invest like their larger competitors, and are therefore in great danger.

Will the state now respond to the alarm call of the industry? Only time will tell.

By Sophie Couard
By Sophie Couard - EDITOR

I am a great fan of gambling, I became a croupier to finance my studies. After my high school diploma in economic and social sciences , I obtained a bachelor's degree in economics and then a master in philosophy with a thesis on player behavior. After working in an online casino customer support, I became a writer on FeedBack Casino.