(AOF) – The Competition Authority announces that it has authorized “under conditions” the planned takeover of the ZEturf group by La Française des jeux (FDJ), following notification dated June 6, 2023. In order to remedy the risks competition concerns identified, FDJ has subscribed to “behavioral commitments”. The FDJ confirmed in mid-November 2022 the acquisition of this online horse racing betting and online sports betting operator under the ZEbet brand, after it was in exclusive negotiations on September 19.
The FDJ has notably undertaken not to exploit its gaming activities as a monopoly (lottery games online and at points of sale and sports betting at points of sale) for the development of competitive games (online horse racing and sports betting ).
The company will clearly separate the exercise of the two activities, by setting up “separate websites or applications for each type of activity without a common home page and without a gateway between them”, “by creating or maintaining a player account specific to each activity without the possibility of a bridge between accounts”, “by refraining from reconstituting a database of customers intended for the promotion of its competitive gaming activities which would reveal data relating to game players in a monopoly.
FDJ also committed to refraining from any promotion of its competitive games in the points of sale of its network or to online lottery players, and to operating separate social network accounts depending on the type of activity. .
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Key points
– Second European lottery, created in 1933 and 4
th
global player, a leading player in sports betting in France with 50% market share under the brands Loto, Cash, Parions Sport, etc.
;
– Turnover of €2.5 billion achieved 77% in lottery, 19% in sports betting & online games and the rest in diversification – payment & services, entertainment, international;
– “Raison d’être” business model based on 4 pillars – the games offer, the societal model, territorial anchoring and sustainability: benefiting from a regulated framework, a monopoly on the lottery ensured for 25 years and a network of 30,000 points of sale ensuring regular growth in sales / aiming to become a leading international player in games and services;
– Capital held at 20.46% by the French State (27.42% of voting rights), the veterans’ mutual (14.78% and 19.31%), Stéphanie Pallez president and CEO of the board of administration of 13 members;
– Solid financial situation with €925 million in equity, €968 million in net surplus and €1 billion in cash.
Challenges
– Strategic plan 2020-2025:
– in 3 points: lottery dynamics, progression of sports betting and growth levers (export of expertise, new services at points of sale),
– increased objectives: annual increase of 4 to 5% in revenues including 20% from digital investments, operating margin rate of +25% and distribution rate of 80 to 90%;
– Innovation strategy:
– multiplied from its own technological infrastructure (+5 billion transactions per year in the group’s clouds, 100,000 pieces of equipment connected at points of sale):
– commitments, for €75M, in start-up financing funds (300 supported) with 2 own investment funds, Aria and V13Invest and, internally, an inno Lab;
– Environmental strategy:
– reduction of CO2 emissions by 50% in 2025 vs. 2017 for the entire value chain,
– Scope 1 carbon neutrality since 2019 by financing carbon offset projects;
– Acceleration of distribution activities in the physical network – public treasury invoices, payment services under the Nirio brand for landlords or energy companies, etc. – and rise of digital (12.7% of total stakes);
– Strategic visibility with the confirmation by the State Council of the gaming monopoly.
Challenges
– Uncertainties regarding the maintenance of the participation in the Chinese BZCP;
– Spinoffs from investments in online games: in online poker, in sports betting in France through the acquisition of Zeturf (20% of horse racing betting in France) and, through partnership with Scientific Games, in scratch games phygital
;
– Integration of Aleda and L’Addition;
–
After growth of 7% in revenue at the end of March, 2023 objectives of a turnover increasing by 4 to 5% and a stable margin rate of around 24%;
– 2022 dividend up 10% to €1.37, i.e. a distribution rate of 85%.
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