In a recent investor presentation on March 26, Banijay Entertainment, the parent company of Tipico and Betclic, expressed strong confidence in the regulated European markets where it operates. The company revealed that Betclic maintains its position as the top online betting operator in France, while Tipico leads the betting market in Germany. Additionally, Tipico’s Admiral betting business holds a prominent position in Austria.
Banijay emphasized that its acquisition of Tipico, announced in October of last year, has reinforced its leadership in the sports betting and gaming sectors by expanding into two new countries with significant market shares.
Group CEO François Riahi declared that Europe remains “the largest and one of the most attractive regions globally for the business.” He noted that Europe accounts for “half of the global [gaming] market, which, unlike the US, is characterized by greater regulatory visibility and stability.” Riahi added that operating in these highly regulated markets enhances the predictability of their business model.
Countries like France, Germany, and Austria are among Europe’s more stringent markets. France prohibits iGaming, while Germany faces challenges with severe player restrictions, including stake and deposit limits, alongside a considerable black market.
Currently, Austria offers a single license for lotteries and online gaming products. This 15-year permit is held by Win2day, a subsidiary of Casinos Austria, which is also responsible for all 12 land-based casino licenses.
The trend among leading gaming companies in Europe to focus on heavily regulated markets seems to reflect a larger movement. FDJ United, which acquired Kindred last year, has adopted a similar strategy to consolidate operations in these markets.
This approach coincides with tier one operators consolidating the industry, as smaller firms face increasing difficulties due to rising taxes and tightening regulations across Europe. Veteran gambling strategist Vaughan Lewis commented last November that this trend illustrates the value creation driven by regulated markets. He mentioned, "Regulatory challenges create barriers to entry, which tends to increase the value and sustainability of the leading operators.”
During the presentation, Riahi reassured investors that Banijay’s current markets are supported by strong regulatory frameworks that protect established operators. This environment fosters meaningful barriers to entry and minimizes disruption risks.
Excluding the black market, Riahi projected that Europe’s gambling sector would represent 44% of the global €97 billion in gross gambling revenue (GGR) in 2024. He indicated that markets like France, Germany, Austria, Poland, and Portugal are currently underserved, with France presenting a growth opportunity from three million players to as many as twenty million, representing a potential 5-7x increase.
Banijay aims for €100 million in synergies derived from the integration of Tipico and Betclic in the mid-term, with an anticipated €70 million coming from operational expenses and approximately €30 million from capital expenses.
Despite his optimism, Riahi acknowledged the difficulties posed by the strict regulatory environment in Germany while addressing analyst inquiries. "Germany is a country where regulation is too tough, and you have a part of the market which is still the black market with no protection," he stated.
He emphasized the sector’s responsibility to collaborate with policymakers to tackle the issues associated with the burgeoning black market. Riahi pointed out that a similar situation exists in France regarding iGaming, stating, "We believe that with our new European dimension, it will be our job to try to convince governments that it is in no-one's interest to have a black market developing when regulation is too stringent and is here to protect."
Germany’s regulator recently reported that its black market accounted for only 23% of the total market size, though stakeholders claim this is a conservative estimate, potentially placing the actual figure closer to 50%.
Riahi mentioned that Banijay's brands have not faced any leakage in sports betting across the European markets. However, he noted that regulation in these regions imposes significant restrictions on novelty and non-sports markets, leaving little room for the development of prediction markets.
