La Française des Jeux (FDJ) Group, a leading French gaming operator, has announced the acquisition of ZEturf, the second-largest online horserace betting operator in France. This strategic move strengthens FDJ’s position in the competitive French online gaming market, complementing its existing sports betting, horserace betting, and poker offerings. The acquisition allows FDJ Group to enhance its revenue streams while maintaining a commitment to responsible gaming.
Background:
Established in 2001, ZEturf operates under the ZEbet brand and boasts approximately 100 employees. In 2022, the company reported revenue exceeding €50 million. ZEturf holds a significant market share of around 20% in online horserace betting in France.
FDJ’s Market Expansion:
With the acquisition of ZEturf, FDJ Group now covers a broad spectrum of gaming activities, including sports betting, horserace betting, and poker, resulting in a consolidated market share exceeding 10%. This expansion aligns with FDJ’s growth strategy and diversifies its online gaming portfolio.
Organizational Restructuring:
In light of this strategic acquisition, FDJ Group plans to implement a new organizational structure to ensure compliance with the commitments set forth by the French Competition Authority. This restructuring aims to streamline operations and optimize synergies within the expanded group.
Stéphane Pallez’s Perspective:
Stéphane Pallez, Chairwoman and CEO of FDJ, expressed her perspective on this significant move, stating: “The acquisition of ZEturf marks a new chapter for La Française des Jeux and strengthens our position in the French market for online games open to competition. Following the launch of our poker business, our entry into the world of online horserace betting rounds out our diversified online range and bolsters FDJ Group’s growth prospects while remaining aligned with our responsible gaming model.”
Financial Performance:
FDJ Group’s financial performance remains robust, with a 5% revenue increase in Q1 2023, reaching €662 million. Earlier this year, the company entered into a cross-licensing agreement with International Game Technology (IGT), further enhancing its offerings. Additionally, FDJ expanded its presence beyond France with the acquisition of Premier Lotteries Ireland.
Market Trends:
The French regulated gambling market continues to demonstrate growth, with a 4% increase in the first half of 2023, resulting in total gross gaming revenue of €5.35 billion. The entry of gaming brand Betsson into the French market in partnership with Sportradar in 2023 reflects the competitive nature of the industry.
FDJ Group’s acquisition of ZEturf solidifies its position in the French online gaming market, offering a comprehensive range of gaming options to consumers. This strategic move aligns with the company’s growth objectives and commitment to responsible gaming practices. FDJ Group continues to adapt to market trends and expand its footprint both within and beyond France.