French gaming group FDJ says it doesn't foresee gambling tax hike, as stock price hit
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
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
