French gaming group FDJ says it doesn't foresee gambling tax hike, as stock price hit (updated)
03/10/2024 16:05
(Adds details, share move, trader comment)
Oct 3 (Reuters) - French gaming group FDJ FDJ.PA said
on Thursday that to the best of its knowledge the government's
forthcoming Social Security budget will not include any tax
measures concerning gambling.
The company's shares fell as much as 9.7% on Thursday on
media reports that the French government would implement a tax
hike on online gaming and betting from 2025, in order to
increase the Social Security budget.
"To our knowledge, the PLFSS (Social Security finance bill),
which will shortly be presented to the Council of Ministers,
will not contain any tax measures concerning gambling," FDJ said
in an emailed statement in response to a Reuters query.
Lucas Excoffier, European equity trader at Oddo BHF
Corporate & Markets, said FDJ appeared to have contacts at the
highest level of the Ministry of Finance before issuing its
statement.
"The market reaction is very severe, even though this type
of news of course feeds the risk of regulation on the gaming
sector, in particular FDJ," Excoffier said.
(Reporting by Alban Kacher; editing by David Evans and Susan
Fenton)
((alban.kacher@thomsonreuters.com))