The European Commission has recently dismissed two complaints alleging that Française des Jeux (FDJ), the French state-owned operator, has an unfair monopoly over sports betting and lottery products in France. The Commission conducted a thorough investigation and determined that the 25-year exclusive arrangement held by FDJ is legal and that the state aid it receives is justified. As a result of this decision, FDJ’s share price experienced a 5% increase.
One of the complaints lodged in 2020 argued that the €15.2 million ($16.5 million) that FDJ pays the government annually is insufficient and constitutes unjust state aid due to being below market value. While the European Commission did decide to increase the total payments by €97 million ($105 million) over the 25-year period, it did not take any further action against FDJ.
FDJ, on the other hand, welcomed the Commission’s ruling, which confirmed the legality of its privatization in July 2018. The French government had opted to sell half of its 72% ownership in FDJ in order to bolster public finances. This move was seen as a positive step for the operator and its shareholders.
Overall, the European Commission’s decision to uphold FDJ’s monopoly control over lottery games and sports betting in France has provided clarity and stability for the operator. This ruling also signifies the legitimacy of the state aid received by FDJ, further solidifying its position in the market. With the Commission’s approval of FDJ’s privatization and ownership changes, the operator can now focus on continuing to provide quality gaming services to its customers.