European Commission settles FDJ investigation, finds no breach

The European Commission has awarded an anticipated win to Française des Jeux (FDJ), settling a four-year investigation into France’s biggest gambling company as to whether the operator’s agreement with the French government to hold exclusivity over 25 years on offline sports betting and both online & offline lottery was tantamount to "state aid."

FDJ did not receive state aid, European Commission concludes

Originally, FDJ and the French government agreed to a €380m deal that would allow the former to secure exclusivity in the aforementioned sectors and run unopposed. However, a complaint with the commission insisted that the amount that the FDJ would have to pay amounted to "state aid."

An investigation was launched, and during that investigation, the FDJ and the commission negotiated a revised rate for the 25-year contract, seeing the total amount of the contract rise to €477m, which the commission deemed appropriate. None of the European Union’s competition rules were breached, the ruling insisted, rendering the complaint moot.

Previously, FDJ was run by the French state, but this changed when the company was privatized, shifting to a market-economy model, and a combined ownership of various investors.

Although enjoying a strong dominance in several markets, the commission has found no breach of competition law, clearing FDJ to continue operating without care. FDJ may appear as a monopolist in certain sectors, but it is not so in the online sports betting vertical, where multiple operators are vying for market share.

France in the midst of gambling regulation shifts

In the meantime, the FDJ may be one among many operators to launch an online casino, as the French government has been openly debating the possibility of introducing iGaming legalization. Although these plans have been put on the back foot because of strong opposition from trade groups and local leaders, France is pivoting towards an online casino framework.

In the meantime, the revised terms of the deal allow FDJ to continue operating in select sectors as the only available company, a status quo that will remain in place through 2044 when the contract is set to expire now that the complaint filed to the commission has been resolved.

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