French horseracing levy approved by EC
Lobby groups keen to review compatibility with EU law on state aid grounds
The European Commission has approved France’s introduction of a horseracing levy, following the implementation of changes which the EC believes “ensure fair competition” between operators.
The 8% levy, scheduled to come into force on 1 January 2014, will be imposed on stakes from horse betting in the dot.fr market, with proceeds going towards “a service to improve the bloodline and promote horse”breeding”.
This is considered in line with the Treaty on the Functioning of the European Union (TFEU), which permits state aid “To facilitate the development of certain economic activities, subject to certain conditions.”
Land-based operators will be required to contribute an amount “at least equal” to that contributed by the egaming industry, while French authorities will be required to provide an implementation report to the EC two years after the measure comes into law.
Lobby groups the Remote Gambling Association (RGA) and the European Gaming and Betting Association (EGBA) have expressed its concern with the ruling and said it needs to be “reviewed thoroughly” by the egaming industry.
In a joint statement the organisations said they would “scrutinise previous Commission decisions” to assess whether horse breeding can be “categorised as a service of general economic interest”.
“A clear distinction must be made between [common interest objectives] and the funds being extracted by law from one industry and transferred to another industry for commercial or quasi-commercial purposes,” the statement continued.