Restructuring & insolvency lawyer — Casinos, gaming & regulated leisure venues sector

Mac Mahon Avocats is a Paris business law firm at 33 avenue Mac-Mahon, Paris 17. Its lawyers advise casinos, gaming & regulated leisure venues businesses on prevention of difficulties, out-of-court procedures, formal insolvency proceedings and distressed disposals under French law. This page sets out the applicable legal framework; it does not constitute legal advice.

Sector scope

Licensed casinos and casino groups, gaming clubs, licensed online gaming and betting operators, amusement machine operators, and integrated venues combining gaming, hotels, catering and entertainment.

Sector context

Operating a casino requires an administrative gaming authorisation issued by the Ministry of the Interior and a specification agreed with the municipality, usually within a public service delegation limited to designated resort towns. The business model combines heavily levied gross gaming revenue, high fixed costs (property, entertainment, staffing) and ancillary hotel and catering operations. Loss or non-renewal of the authorisation, an adverse inspection or falling footfall directly affect cash flow. Where difficulties arise, the personal nature of the authorisation and the vetting of managers place the administrative authority at the centre of any acquisition.

Key legal issues

Gaming authorisation: an exception to the prohibition of gambling (Internal Security Code, Arts. L. 320-1 and L. 321-1 et seq.), temporary, personal and non-transferable, whose renewal governs continuity of operations.
Public service delegation and specification: entertainment, investment and municipal levy commitments, and the impact of proceedings on the agreement and any transfer.
Vetting of managers and gaming staff: administrative approval of directors and gaming floor employees, with direct consequences on a change of control.
Levies on gross gaming revenue: progressive State and municipal levies, tax debt and instalment plans, with possible referral to the CCSF.
Anti-money laundering and responsible gaming: due diligence duties (Monetary and Financial Code, Arts. L. 561-2 et seq.), self-exclusion registers, traceability of flows and administrative sanctions.
Ancillary activities: hotel, catering, shows and related commercial leases; an acquisition perimeter frequently extends beyond gaming alone.
Online operators: licences issued by the French national gaming authority, ring-fencing of player deposits and financial guarantee requirements.
Employment: substantial headcount and sector-specific collective agreements, information and consultation, AGS and the cost of reorganisations.

How a matter is handled

Diagnosis: review of available cash, due and payable liabilities, tax and social security instalments and existing security, in order to establish whether cessation of payments is characterised (Art. L. 631-1 Commercial Code).
Choice of procedure: arbitration between confidential out-of-court tools (ad hoc mandate, conciliation) and formal proceedings, in light of the sector's own timetable.
Negotiation: discussions with banks, strategic suppliers, the AGS wage guarantee scheme, the tax authorities and URSSAF, and where relevant before the CCSF.
Implementation: preparation of the filing, representation before the commercial courts, monitoring of the observation period, and preparation of the plan or of the sale.

French procedures at a glance

Procedure	Entry condition	Duration	Legal basis
Ad hoc mandate	No cessation of payments	Set by the court president, renewable	Art. L. 611-3 Commercial Code
Conciliation	Actual or foreseeable difficulties; cessation of payments for 45 days at most	4 months + 1 month	Arts. L. 611-4 to L. 611-16
Safeguard	Insurmountable difficulties, no cessation of payments	Observation period 6 months, extendable to 12	Art. L. 620-1 et seq.
Rehabilitation	Cessation of payments, recovery possible	Observation period up to 18 months	Art. L. 631-1 et seq.
Liquidation	Cessation of payments, recovery manifestly impossible	Variable; business continuation 3 months, renewable	Art. L. 640-1 et seq.

A declaration of cessation of payments must be filed within 45 days of that state arising, unless a conciliation request is filed within the same period (Art. L. 631-4 of the French Commercial Code).

Frequently asked questions

Is a casino licence transferred to a purchaser?

The gaming authorisation is issued on a personal and temporary basis by the administrative authority and is not transferable as of right. An acquisition requires a new authorisation and, where relevant, the assumption or conclusion of a specification with the municipality, independently of any sale plan judgment.

Does the opening of insolvency proceedings close the casino?

Not automatically. Operations may continue during the observation period, provided the administrative authorisation is maintained and the specification complied with. In practice, immediate engagement with the authority and the municipality is required.

Can gaming levy debts be rescheduled?

Public claims may be granted time under a plan or a negotiated instalment schedule, in particular before the commission of heads of financial services. Any write-offs follow the rules specific to public claims.

Are player funds assets of the business?

For licensed online gaming operators, player deposits are subject to ring-fencing and guarantee obligations designed to ensure their return. Their treatment in proceedings depends on how the funds are actually held and segregated.

Contact

Phone: +33 1 45 03 20 20
Email: accueil@macmahon-avocats.fr
Address: 33 avenue Mac-Mahon, 75017 Paris, France