Date: 31.10.2024

by Sebastian Warowny

European Commission Confirms FDJ’s Compliance with EU Laws

The European Commission has concluded its four-year investigation into Française des Jeux (FDJ), determining that the French gambling giant operates within European legal frameworks. The probe focused on whether FDJ received undue advantages from the French government that could distort competition within the European Union.

Investigation into Exclusive Rights and Fees

The Commission examined the exclusive rights granted to FDJ by the French government, allowing the company sole operation of sports betting games and lottery products. Concerns were raised that the initial fee of €380 million paid by FDJ for these rights, securing exclusivity from 2019 to 2044, was below fair market value.

This could have potentially given FDJ an unfair advantage over domestic and European competitors. Acknowledging that the fee was slightly low, the Commission accepted FDJ’s subsequent agreement to increase the payment to €477 million. This adjustment satisfied legal requirements, leading the Commission to conclude that the arrangement does not constitute unlawful state aid.

Implications for France’s Gambling Industry

With the investigation concluded, FDJ is set to continue its exclusive operations in key gambling sectors for the coming decades.

Meanwhile, France is considering significant changes to its gambling laws, including the potential legalization of online casinos. Although recent efforts have been postponed due to opposition from local leaders and industry stakeholders, the subject remains on the legislative agenda.

FDJ’s established presence could position it favorably in the event of regulatory changes, potentially allowing for expansion into new areas of the gambling industry.