Taxes
(All of the information provided in this section are taken from the joint contribution of the Ministries of Interior, Budget and Agriculture.)
The tax percentages below refer to the games exposed aggregate gross annual income from the activity in question, the amount of the stakes less the gains. Regarding the games offered by the French Games, this levy amounted for the year 2003/2004 to 69.1% of total gross revenues. The public tax rate on casino games for the year 2003/2004 was 57.2% of total gross revenues.
Finally, the public tax rate on earnings realized paris on horse races was 51.6% for the year 2003/2004.
The remuneration of the organizers and intermediaries or professionals involved in the operation of national lottery games, sports and horse prognostic are subject to VAT at 19.6%.
LISTING
ENACTED LEGISLATION
General
– Act of 21 May 1836 concerning prohibition of lotteries (Official consolidated version).
– Act of June 2, 1891 for the purpose of regulating the authorization and operation of horse racing (official consolidated version).
– Law of 15 June 1907 regulating gaming in the casinos of seaside resorts, spas and climate (official consolidated version).
– Act of 31 July 1920 laying down the general budget for 1920, Article 82.
– Law of 30 June 1923 laying down the general budget for 1923.
– Act of 16 April 1930 determining the budget for the 1930-1931 fiscal year, Article 186.
– Act of 31 May 1933 laying down the general budget of the year 1933, Article 136.
– Act No. 83-628 of 12 July 1983 on games of chance (official consolidated version).
– Monetary and Financial Code, art. L. 151-3, art. R. 153-2 to R. 153-11, s. R 165-1, R 165-2 art.
– Civil Code, Articles 1965 to 1967.
– Consumer Code, Articles L. 121-15-1 to L. 121-15-3; L. 121-36 to L. 121-41; R. 121-11à R. 121-13.
– Decree of 6 November 1934 establishing a commission to examine applications for authorization or reauthorization games (official consolidated version).
– Decree No. 47-798 of 5 May 1947 on the regulation of games of Police in circles.
– Decree No. 59-1489 of 22 December 1959 on the regulation of games in the casinos of seaside resorts, spas and climate (official consolidated version).
– Decree No. 78-1067 of 9 November 1978 on the organization and operation of lottery games authorized by section 136 of the Act of 31 May 1933 and Article 48 of the Law of 29 December 1994 (official consolidated version 18 February 2006 (this study covers all the legal provisions in force on 31.12.2005. However, some changes of particular importance occurring after that date have been included.)).
– Decree No. 83-922 of 20 October 1983 on greyhound racing companies authorized to organize totalizator betting (official consolidated version).
(L’ensemble des informations communiquées dans cette partie sont tirées de la contribution commune des ministères de l’Intérieur, du Budget et de l’Agriculture.)
Les pourcentages d’imposition des jeux ci-après exposés se rapportent aux revenus annuels bruts globaux issus de l’activité en cause, soit le montant des enjeux moins celui des gains. Concernant les jeux proposés par la Française des Jeux, ce prélèvement s’est élevé pour l’année 2003/2004 à 69,1% des revenus annuels bruts globaux. Le taux de prélèvement public sur les jeux de casinos pour l’année 2003/2004 a été de 57,2% des revenus annuels bruts globaux.
Enfin, le taux de prélèvement public sur les gains des paris réalisés sur des courses de chevaux a été de 51,6% pour l’année 2003/2004.
Les rémunérations des organisateurs et des intermédiaires ou professionnels qui participent à l’exploitation des jeux de loterie nationale, pronostiques sportifs et hippiques sont soumises à la TVA au taux de 19,6%.
LISTING
LEGISLATION ENACTED
General
– Loi du 21 mai 1836 portant prohibition des loteries (version consolidée officielle).
– Loi du 2 juin 1891 ayant pour objet de réglementer l’autorisation et le fonctionnement des courses de chevaux (version consolidée officielle).
– Decree No. 87-430 of 19 June 1987 laying down the lottery permit conditions (official consolidated version).
– Decree No. 97-309 of 1 April 1997 on paris on parts of pelota (official consolidated version).
– Decree No. 97-456 of 5 May 1997 on horse racing companies and mutual bet (official consolidated version).
– Decree No 2005-1739 of 30 December 2005 governing financial relations with foreign countries and applying Article L. 151-3 of the French Monetary and Financial Code (official consolidated version).
– Order of 23 December 1959 on the regulation of games in casinos (consolidated version updated on 30 July 2001 and subsequent texts).
– Order of 11 December 2001 on regulation of mutual betting on the parts of pelota.
– General Regulation of the French game of games offered by Internet or digital device.
Lotteries
– Act of 21 May 1836 concerning prohibition of lotteries
– Act of 29 April 1930 allowing municipalities to take advantage of the law of 21 May 1836 on lotteries for the purchase of fire equipment or the organization of competitions or cantonal maneuvers of firefighting.
– Act No. 83-628 of 12 July 1983 on gambling.
– Law No. 84-1208 of 29 December 1984 (Article 42 amended) authorizing the organization and operation by the French Games a game involving a combination of chance and sports pools.
– Amending Finance Act for 1994 n ° 94-1163 of 29 December 1994, Section 48.
– Act of 31 May 1933 laying down the general budget of the year 1933, Article 136.
– Decree No. 78-1067 of 9 November 1978 on the organization and operation of lottery games authorized by section 136 of the Act of 31 May 1933 and Article 48 of the Law of 29 December 1994 (official consolidated version 18 February 2006 (this study covers all the legal provisions in force on 31.12.2005. However, some changes of particular importance occurring after that date have been included.)).
– Decree No. 85-390 of 1 April 1985 on the organization and operation of sports betting games authorized by Article 42 of the 1985 Act of finances.
– Decree No. 87-264 of April 13, 1987 taken for the application of Article 7 of the Law of 21 May 1836 as amended relating prohibition of lotteries and Article 1 of Law No 83-628 of 12 July 1983 prohibiting certain gaming devices.
– Decree No. 87-430 of 19 June 1987 laying down the lottery permit conditions.
Casino Gaming
– Law of 15 June 1907 regulating gaming in casinos resorts, spas and climate.
– Act of 31 July 1920 laying down the general budget for 1920, Article 82.
– Act No. 83-628 of 12 July 1983 on gambling.
– Law No. 88-13 of 5 January 1988 of decentralization improvement, Article 57.
– Finance Law No 90-1168 of 29 December 1990, Article 50.
– Corrective Finance Act No. 95-1347 of 30 December 1995 Article 34.
– Monetary and Financial Code, Article R. 153-5.
– Tax Code, Article 945.
– The Social Security Code Article L. 136-7-1.
– General Local Authorities Code, Articles L. 2333-54 to L. 2333-57, and Article L. 5211-21-1 Articles D. 2333-74 to D. 2333-82.
– Monetary and Financial Code, Articles L. 561-1 to L. 564-3-
– Ordinance No. 96-50 of 24 January 1996 on the reimbursement of the social debt, Article 18.
– Decree of 6 November 1934 establishing a commission to examine sets of authorization permit applications or renewal.
– Decree No. 59-1489 of 22 December 1959 on the regulation of games in the casinos of seaside resorts, spas and climate.
– Decree No. 97-663 of 29 May 1997 made pursuant to Article 34 of the amending Finance Law for 1995 (No. 95-1347 of 30 December 1995)
– Order of 23 December 1959 on the regulation of gaming in casinos.
– Order of 24 February 1997 on the regulation of gaming establishments in the territory of St. Pierre and Miquelon.
Machine Gambling Outside Casinos
– Act No. 83-628 of 12 July 1983 on gambling.
Betting
– Civil Code, Articles 1965 to 1967.
– Act of June 2, 1891 for the purpose of regulating the authorization and operation of horse racing.
– Act of 16 April 1930 determining the budget for the 1930-1931 fiscal year, Article 186.
– Act of 23 December 1964 on the Finance Law for 1965, Article 15§3, as amended by Law No 98-546 of 2 July 1998.
– Law No. 84-1208 of 29 December 1984 Finance Act 1985, section 42.
– Decree of 5 May 1997.
– Decree No. 85-390 of 1 April 1985 on the organization and operation of sports betting games authorized by section 42 of the Finance Act 1985 (consolidated version 18 February 2006 (This study covers all the legal provisions in force on 31.12.2005. However, some changes of particular importance occurring after that date have been included.)).
– Decree No. 83-922 of 20 October 1983 on greyhound racing companies authorized to organize totalizator betting.
– Decree No. 97-309 of 1 April 1997 on paris on parts of pelota.
– Decree No 2003-287 of 27 March 2003 empowering the racing companies to organize operations taken paris collected or gathered in France on foreign races and abroad on French races.
– Decree No 2004-227 of 9 March 2004 fixing the rate and distribution of non-tax levy on amounts committed totalizator betting to off and on race tracks.
– Order of 13 September 1985 on the settlement of the Pari Mutuel consolidated version.
– Order of 11 December 2001 on regulation of mutual betting on the parts of pelota.
Bingo
– Bingo is not a specific category of gambling in France. The games that can resemble it fall under the “Lotteries” category.
– Code général des collectivités territoriales, articles L. 2333-54 à L. 2333-57, article L. 5211-21-1 et articles D. 2333-74 à D. 2333-82.
– Code monétaire et financier, articles L. 561-1 à L. 564-3-
– Ordonnance n°96-50 du 24 janvier 1996 relative au remboursement de la dette sociale, article 18.
– Décret du 6 novembre 1934 instituant une commission chargée d’examiner les demandes d’autorisation ou de renouvellement d’autorisation de jeux.
– Décret n° 59-1489 du 22 décembre 1959 portant réglementation des jeux dans les casinos des stations balnéaires, thermales et climatiques.
– Décret n°97-663 du 29 mai 1997 pris en application de l’article 34 de la loi de finances rectificatives pour 1995 (n°95-1347 du 30 décembre 1995)
– Arrêté du 23 décembre 1959 relatif à la réglementation des jeux dans les casinos.
– Arrêté du 24 février 1997 portant réglementation des établissements de jeux de hasard dans la collectivité territoriale de Saint Pierre et Miquelon.
Media Gambling Services
– Act of 21 May 1836 concerning prohibition of lotteries.
– Consumer Code, Articles L. 121-15-1 to L. 121-15-3; L. 121-36 to L. 121-41; R. 121-11à R. 121-13.
Sales Promotional Gambling
– Act of 21 May 1836 concerning prohibition of lotteries.
– Consumer Code, Articles L. 121-15-1 to L. 121-15-3; L. 121-36 to L. 121-41; R. 121-11à R. 121-13.
Charity Gambling
– Act of 21 May 1836 concerning prohibition of lotteries, Articles 5, 6 and 7.
– Decree No. 87-430 of 19 June 1987 laying down the lottery permit conditions.
JURISPRUDENCE
General
– The French case law addresses specific games.
Lotteries
– CE, 15 May 2000, No. 202666 (legifrance.gouv.fr).
– CE, March 22, 1978, No. 00704 03723 03724 (legifrance.gouv.fr).
– CE, 17 March 1995 No. 93229 93230 (legifrance.gouv.fr).
– Cass. crim., May 22, 1997, No. 94-85933 (legifrance.gouv.fr).
– CE, 27 October 1999, No. 171169, 171170, 172384 (legifrance.gouv.fr).
Casino Gaming
– EC, 3 October 2003, No. 248523 (legifrance.gouv.fr).
Media Gambling Services
– Loi du 21 mai 1836 portant prohibition des loteries.
– Code de la consommation, articles L. 121-15-1 à L. 121-15-3; L. 121-36 à L. 121-41; R. 121-11à R. 121-13.
Sales Promotional Gambling
– Loi du 21 mai 1836 portant prohibition des loteries.
– Code de la consommation, articles L. 121-15-1 à L. 121-15-3; L. 121-36 à L. 121-41; R. 121-11à R. 121-13.
Charity Gambling
– Loi du 21 mai 1836 portant prohibition des loteries, articles 5, 6 et 7.
– Décret n°87-430 du 19 juin 1987 fixant les conditions d’autorisation de loteries.
Machine Gambling Outside Casinos
– Cass.crim, December 15, 2004, No. 04-81319 (legifrance.gouv.fr)..
Betting
– Court of Appeal of Paris, 4 January 2006, registration number 05/15773 general directory.
– TGI Paris, interim order of 8 July 2005 (mentioned by the PMU).
– CE, 7 June 1999, No. 188812, 188874, 188907 (legifrance.gouv.fr).
– CE, February 9, 1979, No. 97821 97 822 (legifrance.gouv.fr).
Charity Gambling
– Cass. crim., June 6, 2000, No. 99-85066 (legifrance.gouv.fr).
BARRIERS
French law lays down a general principle of prohibition of gambling. This prohibition derives from Article 1 of the Law of 21 May 1836 which provides that “lotteries of any kind are prohibited.” This text does not endorse the fact of playing but the organization of gambling. Article 1 of the Law of 12 July 1983 has meanwhile that “the fact to establish or take on public roads and outbuildings as well as in public places or open to the public or premises, even private, all of these gambling not authorized by law whose stake is money is punishable by six months imprisonment and a fine of € 7,500. ”
The legislator, however, organized a large number of exceptions to this principle. Cellesci will be considered for each sector concerned in the detailed developments following this overview. It should be noted now that the Minister of the Interior may authorize the practice of gambling in gaming circles.
The authorization is valid for two years. These circles are formed an association and access is restricted to members. The revenues of the circle, from levies on the amount or the earnings of banks as gaming, undergo specific progressive proportional taxation equated with entertainment tax and whose profit comes to the welfare office of the municipality as well . Social payments represent on average 10% of the prize pool after payment of entertainment tax (Reporting by ministries of interior, Budget and Agriculture. Gaming circles are governed by the law of 30 June 1923 laying down the general budget for the year 1923 and by Decree No. 47-798 of 5 May 1947 on the regulation of games of Police in circles.). The practice of gambling in circles is actually very limited (14 circles in France with a product of very low games). (Information provided by the Ministries of Interior, Budget and Agriculture following consultation of the Interim Report.) It concerns concretely, in most cases, the only game of poker, slot machines are specifically excluded. ( information provided by the ministries of Interior, Budget and Agriculture following consultation of the interim Report.)
Furthermore, French law subjecting foreign investments in the gambling sector to authorization of the Minister for the Economy (Article R. 153-2 of the Monetary and Financial Code, established by Decree No. 2005-1739 December 30, 2005, art. 2). Article R. 153-3 of the Monetary and Financial Code (established by Decree No. 2005-1739 of 30 December 2005, art. 3) states that an investment means in this context is due to acquire control of a company whose registered office is in France, either due to directly or indirectly acquire all or part of an industry of a company whose registered office is in France. Minister of control is justified in the law that the activities in question are, for some, “likely to harm public order, public safety or interests of national defense” (Art. L . 151-3 monetary and financial Code).
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