France’s Casinos Aren’t Happy With the Power FDJ Is Yielding

Article by : Erik Gibbs Jan 24, 2024

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Prominent figures within the French casino sector have called upon the newly appointed Prime Minister, Gabriel Attal, to address what they perceive as overly ambitious expansion strategies by Française des Jeux (FDJ).

The group has also criticized what they view as “monopolistic advantages” that potentially enable the former state-owned entity to function across all sectors and channels within the nation.

This collective stance is articulated in a letter obtained by Les Echos newspaper and is endorsed by the CEOs of major casino entities, including Barrière, Partouche, Tranchant and JOA.

The communication raises concerns about what they label “significant distortions of competition” within the industry.

The casino consortium contends that FDJ, which just took over the Ireland National Lottery and said it would spend $2.7 billion to buy Kindred Group, enjoys various advantages. These were addressed as unrestricted access to FDJ premises without identification and the seamless introduction of new games.

The list of benefits also included the absence of controls at sales points, unlike the stringent measures imposed on casinos. Additionally, they highlight the use of a single FDJ customer account for both monopolistic and competitively operated games.

FDJ, in response to Les Echos, underscores its imminent separation of land-based and online databases, drawing parallels with the horse racing monopoly PMU’s compliance a decade ago.

The company underscores its commitment to prioritizing measures to prevent excessive gambling and curb underage gambling, both within its physical distribution network and online.

In recent months, FDJ has expanded its portfolio through strategic acquisitions, including the Irish lottery group Premier Lotteries Ireland and online operator ZETurf.

These moves have solidified FDJ’s position as one of the top four bookmakers in France. Notable previous acquisitions encompass the B2B betting data provider Sporting Group and payments firm Aleda.

The communication contributes to the larger and delicate discourse on the regulation of online casinos.

Les Echos, citing an article from various media sources, disclosed discussions between FDJ and the government regarding a potential exclusive license for casino operations in France.

FDJ promptly refuted these assertions, labeling them as “unfounded.” Additionally, Les Echos observed that the casinos’ actions may be contextualized within an upcoming study on the reform of gaming clubs (cercles de jeux) in Paris.