La Française des Jeux (FDJ) acknowledges the European Commission’s decision, which concludes that no state aid was granted during FDJ's privatization. Additionally, the Commission determined that the equalization payment should be re-evaluated, increasing from €380 million to €477 million, which represents an additional sum of €97 million.
The investigation, formally initiated on July 26, 2021, sought to determine whether the €380 million paid by FDJ to secure exclusive rights to operate point-of-sale sports betting and the lottery for a 25-year period was appropriate. FDJ welcomes the closure of this investigation and the European Commission's confirmation, in line with the decision of the French Conseil d’Etat on April 14, 2023, that the legal framework adopted during its privatization was robust.
FDJ has also accepted the adjusted equalization payment, set at €477 million, which falls within the range initially established by France’s Commission des participations et des transferts in opinion no. 2019-A.C.-1 of October 7, 2019.
Impact on Net Profit and Dividends
This additional payment will be recognized as an intangible asset under “exclusive operating rights,” just like the original €380 million sum. The amortization of this amount will take place over 25 years, starting on May 23, 2019, which is the effective date of the Pacte Law no. 2019-486.
FDJ announced that it will adjust future dividend payments, beginning with those related to its 2024 fiscal year results, based on an adjusted net profit. This adjusted net profit reflects FDJ’s actual economic performance, enabling a more accurate comparison with its competitors. The adjusted net profit calculation will exclude the following items:
- In 2024, an additional amortization of €17.9 million for the 2019-2023 period, recognized under exclusive rights in France.
- The non-cash impact of the currency hedge related to the acquisition of Kindred Group, recorded under financial results.
- Depreciation and amortization of intangible and tangible assets recognized or revalued during business combination allocations.
- Tax changes resulting from these items.
FDJ noted that total amortization of exclusive operating rights will amount to €37.0 million in 2024 and €19.1 million in 2025, following €15.2 million in 2023.
With this decision, FDJ closes an important chapter in its privatization process, strengthening its position in the market and adjusting its financial strategy for the future.
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