Everything has been going well in the online gambling industry for several years now. Boosted by the health crisis, the practice of online games and betting continues to grow in France, with a turnover of 2,621 million euros in 2023, an increase of 6.5% since 2022.
Even if the announcement was made discreetly at the start of the year, the purchase of the capital of Kindred Group by Française des Jeux marks a turning point in the history of European iGaming. By signing a contract worth more than 2 billion dollars, the FDJ aims to diversify and extend its influence throughout the Old Continent.
To talk about it with us, nothing better than the opinion of online gaming expert Erik King, who answers our questions on the potential creation of a gaming giant in Europe.
What does the takeover of the Kindred Group company by Française des Jeux mean?
The method is clever in more than one way, because by proceeding as such, the FdJ extends its power of action to the South of Europe, notably with countries like Malta, considered as paradises for gambling with references like OnlineCasino.mt. In addition to this, it takes a considerable lead over its European competitors.
By purchasing all the capital of a company like Kindred Group, Française des jeux is expanding its empire and holding even more rights to operate abroad. The decision took a few months and the issue excited investors. With a contract worth 2.7 billion dollars, the FdJ is making a bet on the future and tends to diversify its sources of income, on mobile and computer, in particular by including the giant Unibet under its fold.
Unibet has 14 million global users every day. Despite difficult beginnings, the site managed to establish itself sustainably in France. Today it competes with other major French brands in the sector.
The Kindred group is not very well known in France. What is its influence abroad?
Indeed, the Kindred group is far from being a newcomer in the iGaming industry, since the company was founded in 1997 in Sweden. Today, it represents a group made up of 9 brands, including the Unibet betting platform which has managed to become a reference in France. Currently, the group's revenues stand at over $751 million.
The Kindred group can boast of having 30 million regular customers across all of its brands. The purchase by the FdJ has every reason to create a sort of gaming giant, with a hard core made up of the most European brands in online entertainment.
Has the FdJ carried out any other large-scale buyouts recently? What are its long-term goals?
You are probably referring to the acquisition of the Premier Lotteries Ireland group, which holds all exclusive lotto rights in the Irish Republic. It is moreover the first time that a European group buys an international lottery. The contract, estimated at 350 million euros, corresponds to the value of the company at the time of purchase in November 2023.
The general ambition of the FdJ is to offer brands to all European customers with whom it has forged excellent relationships. By taking advantage of gambling laws that are different for each country, FdJ is expanding its customer portfolio and continuing to boost sectors such as betting and national lotteries.
What will be the impact of the Olympic Games on the betting behavior of the French?
Of course, the event causes great enthusiasm among sports and betting enthusiasts. La Française des Jeux is an unwavering partner of the games, and it also finances the participation of French athletes. On the marketing side, it offers new limited edition products to celebrate the Olympics. We are thinking of new scratch games and virtual scratch games.
The Olympic Games definitely give thousands of bettors the opportunity to bet on something other than football! Generally, the Olympics are a big moment for international sports, and it is also a time of growth for betting sites. Punters can already bet on their favorites well before the competition.
What are the new trends in FdJ communication for its consumers?
La Française des Jeux has long understood the importance of preventing the risks associated with gambling. She also has to show her credentials before the Olympic Games. To do this, it offers its customers a gaming experience focused on pleasure, with control of their expenses and self-control in all circumstances.
In an advertising campaign that has been running since January 2024, the French company emphasizes the ban on gaming for minors but also the prevention of excessive gaming.