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Française des Jeux (lottery)

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La Française des Jeux
Company typeSociété anonyme
Euronext Paris: FDJ
CAC Mid 60 Component
IndustryLottery
PredecessorLoterie nationale (France)
Founded1976 (1976)
Headquarters
Boulogne-Billancourt
,
France
Key people
Christophe Blanchard-Dignac
Revenue1,956 billions € (2019)
133 millions € (2019)
Number of employees
2200 (2018)
SubsidiariesFondation FDJ
Websitegroupefdj.com

La Française des Jeux (FDJ) is the operator of France's and the Republic of Ireland's[1] national lottery games, and the title sponsor of the FDJ cycling team. The name of the company loosely translates as The French Company of Games. The company was previously owned and operated by the French government. In July 2018, the French government, which owned 72% of FDJ, took the company public and sold off 50% of its ownership to bolster public finances.[2]

In addition to lottery games, the company also provides online games and sports betting markets, such as association football, cycling, rugby union, and track and field.

The company sponsors two professional cycling teams: Groupama–FDJ in the UCI World Tour since 1997, and FDJ Suez Futuroscope in the UCI Women's World Tour since 2017.

History

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The French National Lottery, established in 1933, is the precursor to the current organization. Initially known as the "Société de la Loterie nationale et du Loto national" (SLNLN) in 1979, it was later renamed "France Loto" in 1989. This name change coincided with a significant restructuring of the company. The government's ownership stake increased from 51% to 72%, while ticket issuers' stake decreased from 49% to 20%. Employees and brokers were allowed to acquire stakes of 5% and 3% respectively. The capital was increased from 20 million to 500 million francs (equivalent to €3 million to 76 million), enabling significant investments. In 1991, the organization underwent another name change and became "la Française des jeux".[3][4][5] The success of the Loto in 1976, facilitated by advancements in computer technology and televised drawings, greatly contributed to the company's revival.

Traditionally, most lotteries around the world operated within their respective territories. However, European integration and the rise of the internet disrupted this monopoly situation in European Union countries. To address this, the Française des Jeux initiated cooperation with other European state lotteries, leading to the launch of a joint drawing game called Euro Millions in collaboration with the British and Spanish lotteries. In 2004, six more countries joined the collaboration: Austria, Belgium, Ireland, Luxembourg, Portugal, and Switzerland.[6] The missions entrusted to the Française des Jeux impose management responsibilities. In 2005, the Française des Jeux contributed €2.33 billion to public finances and provided risk coverage through deductions from bets, benefiting the state, sports, and social finances.[7]

In 2011, its subsidiary LB POKER, jointly owned with the Barrière Group, reported a loss of €30 million.

Beginning in 2006, FDJ implemented a program called "Responsible Gaming" as part of its Corporate Social Responsibility (CSR) policy.[8][9]

On 28 October 2009, the Française des Jeux announced its decision to use a shorter commercial brand name, "FDJ," in order to simplify and strengthen its image, ahead of the opening of the French online gambling market to competition. Alongside the name change, a new logo featuring a modernized four-leaf clover was unveiled.[10]

In June 2011, Tracfin, the anti-money laundering unit of the French Ministry of Economy and Finance, reported that it had received 300 reports from the Française des Jeux for the year 2010.

In July 2015, the FDJ Board of Directors unanimously approved the strategic project for 2015–2020. The FDJ planned to invest over €400 million in technology and its physical network to accommodate the new digital usage patterns of its 27 million customers. By 2017, digital bets accounted for 11% of the total bets, a three and a half times increase compared to 2014. Over three years, bets increased by 17%, reaching €15.1 billion in 2017.[11]

In December 2017, the French government initiated the privatization process of the Française des Jeux under the supervision of the banking group BNP Paribas. An initial public offering (IPO) was considered to take the company public, with the government retaining a "blocking minority" to ensure a minimum level of state ownership in the management. The sale of shares began in November 2019, with the state retaining a stake of approximately 20% after previously holding 72% of the capital.[12]

In late March 2020, during the COVID-19 pandemic lockdown in France, the Française des Jeux announced significant financial losses for the upcoming year. The company anticipated a monthly loss of €55 million due to a 50% decrease in bets caused by a sharp decline in attendance.[13][14][15]

In 2022, as lockdown measures were lifted, the Française des Jeux experienced an 8.7% increase in bets, totaling €20.6 billion. The revenue also increased by 9.1% to €2.46 billion.[16][17]

On 3 November 2023 La Française des Jeux purchased Premier Lotteries Ireland DAC, the operator of the Irish National Lottery, from Ontario Teachers’ Pension Plan Board, An Post and An Post Pension Plan.[18]

On 22 January 2024, the Française des Jeux proposed to acquire online betting firm Kindred for 27.95 billion Swedish kronor, aiming to become Europe's second-largest gaming operator and significantly expand its digital and international presence.[19]

On 3 October 2024 the tender offer is accepted by more than 90% Kindred shareholders, thus starting a "squeeze out" process in Nasdaq Stockholm to delist Kindred. [20]

In November 2024 FDJ announced its first bond issue with a value of €1.5 billion in order to repay a part of the debt of €2 billion bridging loan for the acquisition of Kindred.[21]

Retail Network

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FDJ Store.

In 2017, out of the €15.1 billion generated, nearly 95% was redistributed, with 6% allocated to the retail network (€0.9 billion). This distribution includes payouts to players (66.8%, equivalent to €10.1 billion in 2017), the retail network (6%, equivalent to €0.9 billion in 2017), and the community (21.8%, equivalent to €3.3 billion).[22] The retail network comprises 30,800 points of sale, including tobacco shops, bars, and newsagents in mainland France, as well as village grocery stores and service stations in overseas territories.[23]

In November 2019, FDJ announced the acquisition of Bimedia, a software publisher specializing in payment and point-of-sale solutions, with the aim of supporting the development and modernization of its retail network.[24]

References

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  1. ^ https://www.groupefdj.com/en/activities/ [bare URL]
  2. ^ "UK's Camelot Tipped to Manage Privatised French Lottery FDJ". 19 July 2018. Retrieved 23 July 2018.
  3. ^ "7 novembre 1933: premier tirage de la Loterie nationale". Les Échos (in French).
  4. ^ "Française Des Jeux". Senat.fr (in French).
  5. ^ "Le jackpot perdu de Gérard Colé. L'ex-PDG de la Française des jeux a fait fi de toutes les règles de gestion". Libération.fr.
  6. ^ "La Française des jeux veut responsabiliser les joueurs". Le Monde (in French).
  7. ^ "Panne. Française des Jeux: le grand "bug"". La dépêche. Retrieved 1 May 2013.
  8. ^ "atrungroi". atrungroi.vn. Retrieved 1 July 2023.
  9. ^ "La Française des jeux veut responsabiliser les joueurs". Le Monde.
  10. ^ "Plus de mises et plus de joueurs... La belle affaire pour la FDJ en 2022". www.20minutes.fr (in French). Retrieved 15 February 2023.
  11. ^ "La FDJ attend que le gouvernement décide de son sort". Agefi (in French).
  12. ^ "Le gouvernement donne le coup d'envoi de la privatisation de la Française des jeux". Le Monde (in French).
  13. ^ "Française des jeux (FDJ), les actions revenues à un prix d'achat? : le conseil Bourse du jour". Capital.fr (in French). Retrieved 22 March 2020.
  14. ^ "Française des jeux précise l'impact de la crise sur ses perspectives et grimpe en Bourse". Le Revenu (in French). Retrieved 22 March 2020.
  15. ^ "La Française des jeux touchée par les retombées du coronavirus". Le Monde.fr (in French). Retrieved 22 March 2020.
  16. ^ "Française des jeux: 8.7% increase in bets in 2022, driven by the lottery". LEFIGARO (in French). 15 February 2023. Retrieved 15 February 2023.
  17. ^ "Plus de mises et plus de joueurs... La belle affaire pour la FDJ en 2022". www.20minutes.fr (in French). Retrieved 15 February 2023.
  18. ^ https://www.lottery.ie/about [bare URL]
  19. ^ "'A European gaming champion': FDJ offers to buy online gambling firm Kindred for $2.7 billion". Yahoo Finance. 22 January 2024. Retrieved 24 January 2024.
  20. ^ "FDJ's tender offer for Kindred succeeds, creating a European gaming champion". groupefdj.com. 3 October 2024. Retrieved 5 October 2024.
  21. ^ "FDJ announces its first bond issue". Gameongazette. 18 November 2024.{{cite web}}: CS1 maint: url-status (link)
  22. ^ "La FDJ organise un Loto à 20 millions d'euros pour Noël". Le Figaro (in French). 22 November 2017.
  23. ^ "Privatisation de FDJ : l'État empochera toujours ses 3 milliards d'euros". Le Point (in French). Retrieved 18 June 2018.
  24. ^ "La FdJ se renforce dans les solutions de paiement avec une acquisition". Le Figaro.fr (in French). 25 November 2019. Retrieved 25 November 2019.
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