France is considering handing over the entire iGaming market to FDJ
A few days ago, veteran gaming industry journalist Jake Pollard suggested in the Gaming & Co newsletter on Substack that gaming operator Française des Jeux (FDJ) may be able to acquire the entire online casino market.
Insiders have told Gaming & Co that the FDJ and French authorities are in discussions over possible draft regulations for iGaming. If the rumors are true (neither the FDJ nor the government has commented on this), this regulation could pave the way for the FDJ to take control of the online gaming industry.
France has held a parliamentary debate on Jonum regulation in recent months. An abbreviation for the French translation of “games involving monetizable digital objects” and a draft legal framework containing regulations for Web3 and blockchain gambling.
The French Online Gaming Association (AFJEL, by its French abbreviation) and the French Casino Industry Association (CdF) took a leading role in the discussions. They submitted various amendments to shape their vision for a regulated casino industry.
What do the rumors say
AFJEL proposed competition regulation for online casinos, while the CdF proposed allowing only land-based casinos during a three-year trial period. In the meantime, FDJ will likely use the time to develop its project while considering proposals from AFJEL and CdF, Pollard said.
There are rumors that FDJ may launch an online gaming business in February. This is consistent with the European Commission’s expected review of France’s SREN Act, including the Jonum legislation.
Pollard claims that the French government has no intention of regulating online casinos. But that's not entirely true. Earlier this year, the government began tentatively discussing a plan to allow land-based casino operators to enter the online gambling space.
They will be given a five-year head start, during which only licensed fixed operators will be allowed to launch online platforms. The bill didn't make significant headway, but it didn't die.
ulterior motives
France is likely to support the initiative as it would automatically generate revenue. FDJ was a state-owned operator until the government listed the company and retained about 25% of the company.
The French gaming market generated gross gaming revenue (GGR) of €12.9 billion ($13.95 billion) last year, of which FDJ controlled about 10%. Although the industry's sales have declined this year, they are still in good shape.
Controlling the iGaming space would allow FDJ to provide the government with a larger, more stable revenue stream. The government will gain even more if France goes ahead with plans to block illegal gambling sites.
A report released on Monday by the French Gambling Regulatory Authority (ANJ) revealed that illegal gambling is big business in the country. A study by PricewaterhouseCoopers found that more than 500 unlicensed websites generate GGR of up to €1.5 billion ($1.62 billion) annually. Most have a license from Curacao or Cyprus.
ANJ has repeatedly worked to block unlicensed gaming sites but will now step up its efforts. If successful, FDJ aims to start receiving traffic. This in turn will increase government revenue from the gaming industry.
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Source: www.casino.org
