FDJ moves closer to privatisation

Francais Des Jeux (FDJ) is one step closer to becoming privatised, following the passage of the so-called ‘Business Growth and Transformation Plan’ (PACTE) in France.

Lawmakers in the French national assembly voted 147 votes to 50 in favour of the bill, which is being hailed as a “key moment” in the history of the FDJ.

Speaking to Reuters, French finance minister Bruno Le Maire said: “This is a law which will help our economy and prepare us for the future.”

PACTE comprises a raft of economic reforms, including the privatisation of FDJ, French airport authority Group ADP and state-owned natural gas company ENGIE.

The French government currently owns a 72% stake in the French national lottery operator, which will be sold off to private investors for the first time in its history.

Qualifying its decision, the French government highlighted “multiple competition and profound sectoral changes”, adding that the FDJ must continue to innovate to keep up.

“The company is pursuing a strategy of modernization and transformation of its business to continue to be a European leader. To meet these challenges, the expansion of its shareholding will offer opportunities for development,” the legislation adds.

As part of this process, regulations governing gambling will be strengthened to introduce additional controls governing any prospective shareholder or operator in the business.

Any exclusive rights guaranteed by the French government to FDJ will be maintained and enshrined in law specifically to the FDJ for a fixed term of up to 25 years.

Following privatisation, the state will maintain a minority shareholding in FDJ, in order “to continue to participate in the governance and tight control of the company that will retain the monopoly it currently has”.

The bill must now be reviewed by the French Constitutional Council before it can be adopted into law, but sources close to the FDJ say that this could occur within six weeks.