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With French policy about to change, the future of the government’s stake in monopoly gambling is being considered
September 19, 2008 (InfoPowa News) — The French government, currently working on legislation aimed at opening up its previously monopolized online gambling market in order to comply with European Union requirements, is being advised on the the privatization of national lottery and gambling company La Francaise Des Jeux via a share flotation sometime next year by Merrill Lynch professional business services.
According to the newspaper Les Echos, Christophe Blanchard-Dignac, head of La Francaise Des Jeux, has revealed that the company was preparing for a decision by the State on how to reduce its 72 percent stake.
La Francaise Des Jeux runs many games in France such as the standard Loto lottery, Millionaire, Keno, scratch card games, and the Euromillions European lottery. The firm, which was started in 1933 to benefit war victims and those hurt by agricultural disasters, had 2007 sales of $13.26 billion with 28.5 million players and a network of 38,700 outlets all over the country.
Blanchard-Dignac stated that, while online sportsbetting would be liberalized in the second half of 2009, some 96 percent of the company’s activities would remain within its monopoly.
Update: Suitors Start Lining Up for F de J
Business media speculation rife
September 19, 2008 (InfoPowa News) — The move by the French government to comply with European Union free movement of trade and services requirements by privatizing its gambling monopoly Francaise des Jeux (see previous report) has been the subject of growing speculation this week.
Analysts at the Carnegie Investment Bank said the news that F de J may be privatized in anticipation of regulated and licensed online betting by the end of 2009 could be positive for the likes of Betsson and Unibet, with current state monopolies possibly going on the acquisition trail once privatized.
The French state has a 72 percent stake in F de J, with employees holding 5 percent and historical French lottery organizations controlling 20 percent and the Soficoma brokerage fund around three percent.
Potential suitors have been named in the French business media as publishing firm Lagardere SCA and telecommunications and media firms Bouygues SA and Vivendi SA.
