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Online Casinos in France Rebel Against Gambling Authority
By Shane Addinall Jan 24, 2024 IndustryLeading casino groups go public with displeasure regarding the FDJ’s aggressive acquisition and expansion tendencies that are slowly closing the doors for other operators and leading to an industry monopoly.In every online casino market, there are key players, and then there are those who get left behind. Some regions have giants that aim to take over the entire industry, leaving nothing but crumbs for the rest.
Large casino groups in France have banded together to voice their grievances against Française des Jeux (FDJ) and its aggressive expansion.
Casino Groups Urge Action
The current key players of the French casino industry have spoken up, requesting the new Prime Minister, Gabriel Attal, do something about FDJ and its aggressive expansion policies. The former state-owned company’s monopolistic advantages are among the many grievances. As it provides the opportunity to run across all verticals and channels, the country has to offer.
The letter, as per Les Echos newspaper, is signed by the CEOs of the JOA, Tranchant, Partouche, and Barrière casino groups, who are all opposed to the ‘major distortions of competition’.
According to these casino groups, the FDJ benefits from various advantages, including access to the FDJ premises without ID, new games and a lack of controls at the sale points, unlike other casinos. Another big benefit is that FDJ customers can use the same software to access games across the monopoly and those operating in a competitive context.
A Split on the Cards
The FDJ has mentioned in Les Echos that the land-based and online databases will be split in the near future. Something the horse racing monopoly PMU was obligated to do about a decade ago. According to the FDJ, the priority is to prevent excessive gambling and gameplay among minors via all land-based and online networks.
The latter forms part of the sensitive yet broader topic of online casino regulation. As it was revealed in Gaming and Co, the FDJ has been discussing having an exclusive license with the government for operating iCasino products in France. The FDJ, however, dismissed these claims, stating they were unfounded, yet according to Les Echos, the moves they’re making fall within the context of the study.
The big concern among leading casinos is that they are being discriminated against as the regulator clearly favours the FDJ.
Acquisition Friction
In the most recent months, the FDJ acquired the Irish lottery group Premier Lotteries Ireland and the online operator ZETurf. A transaction that led to it becoming one of the top 4 bookmakers in France. Other acquisitions by the company also include the payments firm Aleda and the B2B betting data provider Sporting Group.
The major concern here is that its aggressive expansion policy is creating a monopoly with the FDJ using exclusive rights activities to promote and develop its own service offerings.
The leading casino operators banded together, stating that the primary focus should be fighting against illegal bidding and mitigating the damage suffered by casinos rather than promoting a possible industry monopoly.
The Casinos de France Union and the Association des Casinos Independents have provided several support methods.
It’s clear that the FDJ is eager to become the new European gaming champion. It recently launched its offer to acquire Kindred Group for an all-cash tender at around €2.6 billion. The proposal to purchase Kindred falls in line with the company strategy and provides the opportunity to diversify and balance the profile, according to Stephane Pallez, chairwoman and CEO of the FDJ group.
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