The French gaming industry has been particularly turbulent in recent months due to the government’s plans to privatize La Française des Jeux (FDJ). The state intends to sell more than 50% of the 72% stake it currently holds in the company.
This operation will, among other things, result in the creation of FDJ terminals that will be positioned in bars and tobacco shops and at several retailers, where French people will be able to play the digital lottery. However, it must be said that this measure is not really to the liking of casino groups, who see it as potential competition in a sector where they have previously held a monopoly.
The Barrière group at the forefront
It was through its CEO, Dominique Desseigne , that the Barrière group, France’s number 1 casino operator, responded to these reforms. Indeed, in a letter to senators and deputies from the cities of Cannes, Deauville, Enghien-les-Bains, Bordeaux, Lille, Nice and Toulouse, the group expressed its concerns. For its top manager, the installation of FDJ terminals will be direct competition to the group’s gaming establishments that are present in these different cities.
In another letter addressed to the mayors of the affected municipalities, the directors of Barrière establishments also stated that the low probability of winning at FDJ terminals is not a strong enough argument. To support its argument, the Barrière group cited the examples of Italy and Germany, where recent reforms in the gaming sector have had disastrous effects.
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The response of the Ministry of the Budget
For the Ministry of the Budget, the draft ordinance currently being considered by the Council of State and the European Commission takes into account the balance of the sectors. The law stipulates that the operation of slot machines remains the exclusive responsibility of casinos.
Furthermore, according to the ministry, there is no likelihood that FDJ terminals will compete with slot machines. Indeed, FDJ does not plan to develop casino games or sports betting games in its points of sale. Furthermore, the number of terminals present in the same space will be the subject of a decree from the Minister of the Budget to reduce the risk of competition with casinos. Arbitration is currently underway on this matter.
Strict and close control
The government is aware of the risks of addiction and disruption to public and social order that the installation of FDJ terminals could cause. To address this, the law grants the minister the power to suspend or prohibit the operation of a game if public and social order are at risk. Strict monitoring of the terminals will also be implemented through the installation of cameras.
Only players of legal age will be allowed access to the terminals. Retailers will be held responsible for ensuring compliance with these various provisions, according to clearly defined specifications. Key appointments within the FDJ will also be subject to approval by the Ministers of Economy and Budget.
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