FDJ in line for exclusive dot fr iCasino
FDJ-government talks for iCasino, JOA Groupe ad fraud, Entain & Co
Hello on Gaming & Co today:
Could French lottery Française des jeux be in line for an exclusive iCasino licence?
Second largest casino operator JOA Groupe bemoans ad fraud on socia media.
Entain woes set to continue.
Kindred out of US, news in brief.
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FDJ in talks for exclusive iCasino licence
Sources suggest French lottery operator could be in line for exclusive iCasino licence.
French twist: Could lottery operator Française des jeux be about to agree a deal with the French government that would see it become the only company licensed to operate online casino games in the country?
French industry sources have told Gaming & Co that FDJ and the country’s authorities were working on a regulatory project that would make such a venture possible.
Tool up: Should it happen industry stakeholders would be up in arms about. Horse racing monopoly PMU is understood to be particularly upset at the idea.
Why now? Both AFJEL, the country's online gambling trade body, and Casinos de France, the land-based casino lobby, were highly active during the parliamentary debates on France’s web3-JONUM regulations that concluded in October. They put forward numerous amendments outlining their visions for a regulated iCasino vertical in both houses of the Assemblée Nationale.
With AFJEL calling for a competitive regulated online casino sector and CdF putting forward a proposal where only physical casinos would be licensed as part of an experimentation period. These were rejected, but FDJ would be making its move with full knowledge of those proposals.
Should the information be accurate, events are likely to unfold from February 2024 when the European Commission is expected to have reviewed France’s online digital bill in which the JONUM bill is included. FDJ did not respond to requests for comment.
Why FDJ? The nature of the group’s instant and scratchcard games (in both online and retail settings) are close to slots products and at the time of the web3-JONUM deliberations, FDJ executives warned government officials about the risk to those revenues should the iCasino regulations put forward by AFJEL and CdF be adopted.
Could it really happen? In short, yes. As with the web3-JONUM legislation it pushed through in October, the French government has shown it would have no qualms about doing something similar, only this time it would favour FDJ.
Industry observers have also pointed to the fact that as opposed to the regulation of online sports betting in 2010, the government has not stated its intention or desire to regulate online casino, preventing a concerted lobbying effort from stakeholders.
How would the government frame it? Good question, but in the words of one industry source, “the authorities could present it as a three or five-year experiment with a review set at the halfway point, emulating what they did with the web3 regulations”.
European infringement proceedings against France would also be likely in the event of FDJ being granted an exclusive online casino licence. However these can be lengthy, drawn out and favour incumbents.
It’s also worth noting that the French state still owns around 25% of FDJ and the group is the most active of all the French gambling operators across all channels.
It has exclusive rights to land-based sports betting and lottery operations, these are replicated online and are complemented with ZETurf, the number 2 (digital) horse racing pari mutuel brand in France, with its ZEBet brand enabling FDJ to grab the number 4 spot for online sports betting.
Cold hard cash: In 2021 FDJ paid out €3.8bn in taxes to the French state, making it the largest gambling contributor to French coffers, which gives it considerable sway over regulatory proceedings.
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JOA Groupe victim of ad fraud on social networks
Online casinos targeting France use logo and branding of country’s second largest casino group
Social frauds: JOA Groupe, the second largest casino operator in France, has filed a complaint against the authors of advertisements that use its name and logo to advertise online casino sites claiming to be part of the group.
JOA said that since November 18 several of its French land-based casinos had been used in misleading adverts across a number of social networks, but in particular on Meta.
The group said the operators concerned used JOA branding, logo and casino properties “to promote their illegal online casino games” to French consumers.
Chairman Laurent Lassiaz said: "This legal action is an essential step in preserving the integrity of the gambling industry. We are surprised that advertising platforms with so many resources have their control processes so widely and easily circumvented.”
No let up
As Entain CEO Jette Nygaard-Andersen continues to feel the pressure from disgruntled investors, sources close to both the UK group and MGM told SBC News that the US casino giant is “not interested” in reopening M&A talks to acquire the whole company and will maintain the focus on acquiring the 50% of BetMGM that Entain holds.
Losing my religion: Earlier this week the Financial Times reported that investors “had lost faith” in Nygaard-Andersen and that her position was looking increasingly difficult.
Their discontent follows a near three-year run of 11 acquisitions of varying size and success.
This summer’s €750m buyout of Polish bookmaker STS led investor Ricky Sandler, CEO of New York-based hedge fund Eminence Capital, to go public with his criticisms of the group.
Double Dutch: Entain has also been fined €3m by the Dutch regulator KSA for anti-money laundering and responsible gambling failings by BetCity, the online gambling group it acquired in 2022. Entain said it was aware of the issue when it acquired the group.
At the end of last week the UK group announced it had reached a deferred prosecution agreement with the UK Crown Prosecution Service over its historic activities in Turkey. The DPA is expected to be approved on 5 December.
Further reading: Why time is on MGM’s side
US exit stage left
Unibet’s parent company Kindred is set to exit the US market by the end of Q2 2024. The decision comes as part of the strategic review it announced in 2022.
The group said it would focus on its “core markets” and will reduce headcount by up to “300 employees and consultants during 2024”.
It expects to make savings of around £40m as a result, these will be reallocated to “extensions of hyper-local casino brands in selected markets” and for “continued product differentiation through exclusive content”.
News in brief
Kaizen Gaming’s online sports betting brand Betano has confirmed it will be a betting sponsor of the EURO 2024 tournament taking place in Germany next year. The group, which was a sponsor at the Qatar World Cup, said it was the first betting company to reach a partnership with UEFA.
Lottomatica is set to issue €500m in debt notes in Q124 to fund its €640m acquisition of SKS365. The deal saw the Italian group become the largest omnichannel group in Italy. SKS365’s PlanetWin365 and PlanetPay365 brands include more than 1000 betting points and 120 arcade venues.
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