Parisian gaming clubs, a cornerstone of local entertainment and significant economic contributors, have been shuttered since January 1. The closures stem from political upheaval following the French government’s collapse on December 5 due to a censure motion. This crisis has left 1,500 employees in financial limbo and threatens the stability of the sector.
Thousands of Jobs and a Sector at Risk
The gaming club closures have far-reaching consequences. Around 1,500 employees now rely on government-backed partial unemployment benefits, which cover 60% of their salaries. However, these payments fall short of easing the financial burden for workers or the businesses themselves. Fixed expenses like rent, utilities, and maintenance continue to mount, pushing some establishments to the brink of financial collapse.
Independent gaming clubs are especially vulnerable. With minimal resources and dwindling cash reserves, many small operators are struggling to stay afloat. “This situation is terrible for the 1,500 families who work in the clubs,” said Sébastien Leclercq, General Manager of Circus Casino France, which operates Club Circus Paris.
Leclercq explained that his company is providing additional unemployment supplements to employees for two months. However, he warned that this level of support cannot be sustained indefinitely. “We will not be able to last several months like this,” he cautioned during an interview with BFM Business.
Government Support but Limited Action
Efforts to stabilise the sector have been hindered by the political turmoil. While both the Ministry of the Interior and the Ministry of Labor have expressed support for gaming clubs, meaningful legislative intervention has yet to materialise.
A government report outlining measures to ensure the long-term sustainability of gaming clubs was completed before the crisis but remains unacted upon. “The Ministry of the Interior and Labor support us: they are receptive and try to help us,” said Leclercq. Yet, the lack of an operational government has stalled progress.
The clubs’ closure also impacts public finances. Parisian gaming clubs contribute significantly to tax revenues, generating a Gross Gaming Product (GRP) of €120 million in 2022. Of this, €50 million was allocated to public authorities, including €40 million for the State and €10 million for the Paris town hall. Club Circus Paris alone accounted for €20 million in revenue, with €16 million stemming from gross gaming revenue.
Independent Clubs Face Bleak Prospects
While major operators like Club Circus Paris have some capacity to weather the storm, smaller clubs are nearing their breaking point. Without swift intervention, these independent establishments could soon shutter permanently, further destabilising the sector.
Leclercq highlighted the precarious position of smaller clubs: “Some independent clubs no longer have any resources and are in danger.” Fixed costs such as lease agreements and equipment maintenance continue to drain their finances despite the lack of revenue.
The ripple effects could extend beyond the gaming sector. The closures have disrupted a local entertainment ecosystem that attracts visitors and supports related industries like hospitality and tourism.
The Need for Urgent Legislative Action
Industry leaders are urging the French government to prioritise reopening gaming clubs and enacting supportive policies. Without immediate action, the consequences could be dire for businesses, employees, and the broader economy.
- Employee Well-being: Extended closures could deepen financial hardship for the 1,500 workers dependent on the sector.
- Economic Losses: The cessation of gaming operations translates to significant losses for both businesses and public revenues.
- Sector Viability: Independent clubs, which lack the financial buffers of larger operators, are at high risk of permanent closure.
As the political stalemate drags on, the future of Parisian gaming clubs—and the livelihoods they support—remains uncertain.
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