New Britain herald., 1930-10-18
GAMBLING STRIKE
 HIGH TAX SEQUEL
Doubled Levy on Baccarat Stirs
 French Gaming Houses
BY NHNOTT SAUNDERS

ParlS, Oct. l8. - The business or legalized gambling in France has become such a gamble, owing to heavy taxation, that 1t is no longer good business.
 As result, all of the popular resort cities are threatened with crisis. They don't see how they can make things pay if gambling doesn't pay. ...
 The big gambling syndicates. which in the past were always ready to back" the bank, are OH strike and refuse to play bali, or baccarat, until the government, reduces it's tax levies. The strike has continued for several weeks and seriously hurt prosperity in such places at Deauville. Le Tou- quet, Juan-les-Pin and Biarritz.
 Unless Parliament acts quick ly when it opens in November, with compromising legislation for all concerned except the sucker, Of course the winter resorts such as Nice and Cannes will be hard hit. Morte Carlo, although not French, has an operating arrange ment with France which places 1t in about the same position. Tax Is Doubled
 The strike of the syndicates is aimed to force the governments hand. The tax on baccarat profits was increased last May by ap- proximately 100 per cent, and now amounts to 25 per cent oe all winnings The big gamblers. who have been willing to hold the bank against all corners in fash icnable casinos. with no limit on bets, found that this cut down the | margin of returns to such an ex- | tent that a bad run of luck was no counter-balanced.
 In other words. the percentage in favor of the bank was reduced to about 3 per cent, which was not l enough. In the long run, the bank is bound to win, but the new tax alton so neutralizes profits that the game is no longer a good com- mercial proposition.
 - W ANAAoHS IiS opSA bank baccarat is impossible, be- cause no private person has suf- ficient capital. to hold the bank ! against all corners with the neces- sory continuity. And without tho open bank game, really high play is impossible, because in chemin- | defer the stakes are limited and l banker chooses to put in the bank. In chemin-d defer the tax levied Is per 'cent Cn the stakes every time the banker wins, and this game doesn't interest the big sym dicates.
 Many Americans Play The problem has many ramifi- cations. If the big gamblers, tho best known of which is. the so- called Greek syndicate, headed by NJ Zographos, do not hold the | baccarat banks, the wealthy plungers cannot play. Many of the familiar figures at baccarat tables in popular casinos have been Americans. Without such a game running, the casino, and even the resort itself, does not interest the heavy private players.
 The resort cities therefore suf- fer from the other business that these rich visitors bring to hotels, restaurants and other interests. In this business chiefly are the re- sorts interested, for the smaller tables do not do so well if the ''swells" are not bringing public ity to the place.
 | The syndicates have threatened to operate elsewhere. outside of France, thereby attracting the wealthy players to the injury of French resorts.
 Governments Position
 France is proud of its resorts, with their finely-appointed casinos as attractions. The government position is explained by M. Bacque. chef du cabinet of the Ministry of l Tourism, as follows:
 l This tax on gambling profits does not go into the pockets of the state. The state takes the tax with one hand and forthwith spends 1t with the other, on the improve ments of the very resorts from which it comes. This tax is used as general fund to make resorts more attractive and up-to-date, to furnish credit to hotel keepers and promoters. By lowering the tax, the state either would have to con- tribute to this fund or curtail im- provements."
 This makes the positions of the government very delicate, and 6 heated parliamentary controversy Is anticipated.
 All the summer resorts have done very poorly this year. True, the weather has been bad, but opinion is divided on whether the weather or the strike of the big gambling syndicates has been nor to blame. The small volume of business at the tables, however. would indicate that the gambling syndicates hold, with their strike, a high trump card perhaps the ace.