Operator News
France – French casinos up in arms over latest enforced closures
By Phil - 26 October 2020
Casinos in France are up in arms having been told that the majority of them must shut up shop due to the worsening coronavirus pandemic in France with most other businesses in the hospitality sector being told they can continue to operate under a curfew.
Prime Minister Jean Castex has applied a curfew from 9 p.m. to 6 a.m. in 54 French departments but has told casinos they are exempt from the curfew and instead must close completely. This will see the closure of 119 casinos; two in Guadeloupe, 117 in metropolitan France and eight Parisian gambling clubs.
Although initially lasting for one month, Head of state Emmanuel Macron has said he wants it to be extended until at least December 1, but he will need to get parliament’s approval for such a measure.
The Circus group has immediately filed for interim relief against the Paris Prefect of Police decree for the closure of its Club Circus Paris. It had seemingly won the right to stay open until the new decree was announced.
It said : « The order of the administrative tribunal obtained by Circus was qualified as a “Pyrrhic victory” because the administrative judge validated the urgency and the infringement of the fundamental freedom of trade. Everything therefore seemed to be moving towards a reopening of the Club Circus Paris from October 19, 2020, but due to the Covid-19 epidemic, the state of health emergency, introduced a curfew and a closure of P-type “playrooms” ERPs in the eight agglomerations targeted by the health emergency. ”
Sébastien Leclercq, Managing Director of Circus Casino France and Club Circus Paris said: “We immediately contacted the employers’ union Casinos de France and all his counterparts from the casinos and clubs affected. The first question that arose was that of a class action suit. There is a difference in status between casinos and clubs even if the two types of establishments are subject to common legal rules. In addition, some groups are doubly impacted because they have a club and one or more casinos in the eight agglomerations in question. Finally, others had only their club’s interests to defend.
“The closure criterion retained, namely the classification of gaming rooms in establishments receiving the public of type P, does not appear relevant, it is therefore not justified. Rather than choosing to allow casinos and clubs to games to operate between 6 a.m. and 9 p.m., the State has decided that, in each area where a curfew is imposed, necessarily, mechanically and systematically, casinos and gaming clubs should be completely closed to the public in as a category P “playroom” ERP.
“However, dance halls and discotheques are authorized to operate their activity until 9 pm. “If an analogy were to be made, it would undoubtedly be more relevant with restaurants, which nevertheless come under another category of establishments open to the public, and in which protocols have been put in place, which allow their operators to remain open until 9 p.m. in areas where the curfew is in place, even though the barrier gestures that are implemented by construction are certainly more risky than those in casinos.
“The opinions of the ARS do not show that casinos and / or gaming clubs are epidemic hotbeds. The general closure measure imposed in curfew areas is in any case disproportionate, since the objective of fighting the Covid-19 epidemic can be achieved by less restrictive measures.
“Our intention was not to engage in a standoff against the state. We have a duty to preserve jobs and do everything possible to avoid the collapse of our establishments,” added Mr. Leclercq. “It seemed normal to me to involve all groups, large and small, in this action. Despite the gravity of the situation, I welcome the support of employers’ unions and employee unions. Beyond the Covid and the health emergency, it should be noted that joint action by competitors supported by all unions is anachronistic, to say the least. For our group, this is how we like to work, with consensus and collective energy.”
Since their reopening on June 2, casinos have developed much stricter health procedures than those requested by the government, including the permanent wearing of face masks, social distancing, Plexiglas partitions, cleaning of slot machines, to the point that ‘no cluster was to be deplored in one of the French casinos.’
The Force Ouvrière union of casino employees said; « From closing to closing, our professions are dying in total indifference. More than 15,000 jobs are being sacrificed today amid general indifference. If our leaders wanted to kill our industry, they wouldn’t do it any other way. And if we do nothing, they will succeed. Of the eight Parisian clubs, how many will be left on December 1? In casinos, the disaster will be of the same magnitude. Why are you focusing on casinos, gaming clubs so much? The hard measures always strike the same, continues FO. Why the curfew does not apply to us and why are we not able to operate between 6:00 am and 9:00 pm? The accommodations and exemptions offered to restaurateurs must extend to professions that have strict and identical health protocols. It’s a way to save what can still be saved. »
The Partouche group, has moved quickly to obtain an additional six-month postponement on its loan repayments.
It said: “All of the group’s bank debts see their maturities of the next six months in capital, and for some in interest as well, postponed and spread out after their due date. The maturities of October 31, 2020 and January 31, 2021 of the syndicated loan are both postponed to the new Final Repayment Date, namely July 18, 2026, compared to October 18, 2025 initially; and April 18, 2026 after the first postponement. In addition, the bond issue issued by the Groupe Partouche holding company and the credit leases are not affected. ”
“Some of the group’s casinos first had to endure closure decisions by order of certain Prefects of departments where there were maximum (health) alert zones. The Aix casino was thus closed a few days (from September 28 to October 9) before a decision of the Administrative Court of Marseille ordered its reopening. The court ruled that the decision to ban public access violated the freedom to conduct business and was manifestly disproportionate given the system put in place at the site to fight the pandemic. This health defense system is also implemented by all casinos under a policy initiated by SA Groupe Partouche. ”
Partouche added : « A summary action will be initiated with the Council of State, in order to assert the disproportionate nature of the administrative system which does not appear to have taken into consideration the arsenal of prevention, precaution and protection measures that have been established in all of our casinos and, consequently, in recently closed casinos. »
