Casinos could be coming to more French cities as cash-strapped municipal governments look for new revenue streams.
As in other markets, the French casino industry struggled in the wake of the 2008 global economic downturn. But net casino revenue in France rose 2.2% to €2.2b in 2015, the first positive growth in seven years. With momentum behind it, the casino industry – and local government – is thinking expansion.
Jean-Claude Gaudin, mayor of Marseilles, announced this week that the city was opening a public tender for the development of a casino. Gaudin has commissioned studies that show a local casino could create 500 jobs and contribute €10m in annual tax revenue to the city’s budget.
Gaudiin is looking to emulate cities like Deauville, where the municipal government derives 30% of its budget from casino taxes. Other French towns rely on gaming operations for as much as 80% of their tax revenue.