FDJ increases revenues in first three quarters
Française des Jeux (FDJ) has revealed that its revenue increased by 7% in the first nine months of the year to €1.4 billion.
France.- Française des Jeux (FDJ) is getting ready to be privatised at the end of November, but it is not worried about its year-to-date gross gaming revenues (GGR), as they have increased 7% to €1.4 billion year-on-year.
FDJ said that the growth comes after an increase in stakes across all of its segments. Lottery is still the highest-grossing vertical for FDJ, reporting a 6% rise in stakes to €10 billion. Euromillions and Loto accounted for 20% of FDJ’s total stakes in the first nine months of the year.
Moreover, sports betting stakes rose 14% to €2.6 billion, and once again tennis, football and basketball were the sports that generated the biggest revenue during that nine-month period.
Another vertical that continues to register impressive results is the online segment, which reported a 38% increase in stakes to €2.4 billion. FDJ said that it has also contributed with €2.6 billion in taxes in 2019, which is also an 8% rise from 2018.
Estimations for 2019 and 2020
FDJ said in its financial report that it estimates a positive outlook for both this year and 2020. Player stakes are likely to increase by 7% by the end of the year. Adjusted revenue would be around €2 billion.
Furthermore, lottery will remain the biggest revenue generator for FDJ and post €1.5 billion. Sports betting is likely to generate €370 million.
Chairwoman and CEO of FDJ, Stephane Pallez, said that she expects the company to continue this momentum. She said that the new regulatory framework grants the company the exclusive rights to operate lottery and sports betting, which are the biggest contributors to their finances, meaning that they’re not afraid of losing a big share of money with these new changes.
French government announces new regulatory authority
As part of FDJ’s privatisation, the government has unveiled the creation of the L’autorité nationale des jeux (ANJ), which will replace L’autorité nationale de régulation des jeux en ligne (ARJEL).
The Minister of Action and Public Accounts, Gerald Darmanin, announced the news and said that the ANJ will be in place on January 1. This order was made in the Council of Ministers, which specified the terms of the privatisation of FDJ. The authority will be in charge of all gambling activity except casinos in France.
The French state currently holds 72% of FDJ, but after the privatisation, it will only have 20% of the company. Government spokeswoman Sibeth Ndiaye said that the ordinance ends the FDJ monopoly to replace it with a limited-term right, set at 25 years and renewable.
