EU's Commission Disputes Accusations on France's FDJ Gaming Monopoly Being Unfairly Run
In the realm of French gaming, the European Commission has made a significant decision regarding Française des Jeux (FDJ), the national lottery operator. The Commission's ruling, announced in July 2018, confirmed the legality of FDJ's privatization, a move that saw the French government sell half of its 72% ownership in the company to boost public finances.
The privatization, part of a broader government strategy to introduce private capital into previously state-controlled enterprises, left the French state with a minority stake and regulatory oversight. However, the Commission's ruling did not directly address the complainants' concerns about the amount FDJ pays the government annually or the alleged unjust state aid.
The complainants, who voiced their concerns in 2020, argued that the €15.2m ($16.5m) that FDJ pays the government annually is too little and that the discount to the true market value is a form of unjust state aid. Despite these claims, the European Commission deemed the state aid received by FDJ as legitimate.
The Commission's decision was based on a comprehensive investigation into the allegations of unfair monopoly control by FDJ. For 25 years, FDJ has held a legal monopoly on lotteries and certain betting games in France, raising concerns from competitors and the European Commission about fair competition and state aid. Regulatory measures were included in the privatization to maintain competitive fairness, but some private operators and watchdogs have expressed concerns about the monopoly position granted to FDJ.
Despite the Commission's investigation, it rejected two complaints regarding the monopoly control Française des Jeux (FDJ) has over sports betting and lottery products in France. The gambling operator welcomed the news of the European Commission's decision, with its share price increasing by 5% following the announcement.
However, the European Commission's decision does not address the complaint about the amount FDJ pays the government annually. The Commission increased the total payments by €97m ($105m) over the 25 years, but took no other action regarding the complaint about the alleged unjust state aid. The complainants from 2020 did not succeed in convincing the European Commission to take further action regarding the alleged unjust state aid in the form of the discount to the true market value of the payments FDJ makes to the government annually.
As the situation stands, FDJ continues to operate as a private company with a legal monopoly over lotteries and certain betting games in France. The European Commission's ruling serves as a confirmation of the legality of FDJ's privatization, but the debate surrounding the amount FDJ pays the government annually and the alleged unjust state aid continues. For detailed, up-to-date information, official government releases or European Commission decisions on FDJ privatization and competition law should be consulted.
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