CASINO PROFITS FALL

Greymouth Evening Star, 1 June 1935, Page 10

CASINO PROFITS FALL

MONTE CARLO PASSES DIVIDEND. PARIS, April 17. The announcement to-day that the company which controls the famous Monte Carlo Casino was unable to pay a dividend this year has directed attention to the serious financial situaation facing practically every French casino.

At Monte Carlo it was revealed that receipts had fallen to £822,000, which was £137,999 below that of last year. Expenses totalled £767,000, leaving a net profit of £54,800, which would be carried forward.

Apart from the boom years of 1928 and 1929 the French casino receipts corresponded roughly with the fluctuations between the franc and sterling. The casinos were first reopened after the war in 1920, when the average exchange rate was 51 francs to the pound. Then* total receipts for that year were 117,000,000 francs. Annual receipts progressed steadily, and in 1924, when the pound was at 85, they were 204,000,000 francs. The peak year was 1928, with total takings of 414,000,000 francs (exchange rate 124 francs to the pound). DECLINING SINCE 1928, \ Since then the decline has been steady. In 1930 the total takings were 338,000,000 francs (exchange rate 124) in 1932 they fell to 152,000,000 francs (average exchange 89 francs to the pound), and in 1933 they were 146,600,000 (average exchange 84). Last year they improved slightly, being 146,600,000 francs (average exchange 79). This reflected a change in policy, namely permission by the Government for larger casinos to introduce roulette and trente et quarante. This enabled them to capture some of Monte Carlo’s ‘‘big business.” Nevertheless, the takings of the smaller casinos, which were unable to introduce roulette owing to insufficiency of cover, continued to decline If it had not been for a decrease in taxation many would have been forced to close down.

This heavy decline in profits has directly affected State finances, for the Government, during 4,he prosperous years, took just more than half the annual receipts. Two years ago, fearing general disaster among the smaller casinos, the Government granted considerable tax relief.

There are at present 173 casinos in France, but the receipts of the fifteen greatest institutions represent nearly three-quarters of the total takings. At present the most .successful casino is that at Le Touquet-Paris Plage, the total takings pf which last year were 16,600,000 francs. Then come the municipal casino, at Nice, with 1934 takings of 10,700,000 francs, Beauville with 9,900,000 francs, and Enghein (a suburb of Paris) 9,500,000 francs. As a general rule the casinos at the favourite resorts, of English visitors show the highest takings. The improvement in trad's in England was thus directly reflected last year when receipts at Le Touquet, Boulogne, Nice and Aix-les-Bains increased by 20 to 50 p‘sr cent. While the struggle between the large French casinos and Monte Carlo is in progress another internal casino war is being waged. Thus, for instance, Boulogne, which had a very successful season last year, expects

this year to introduce roulette to capture some of Le Touq.uet.’s takings from English tourists.