The gambling landscape in France is undergoing notable changes. On one hand, a well-established land-based sector thrives, while on the other, the potential introduction of iCasino hangs in the balance, alongside a flourishing offshore market. Some estimates suggest that the black market for gambling in France could be as high as €1.5 billion annually, signifying a considerable amount of tax revenue that the government misses out on and potentially marking it as the largest offshore gambling market in Europe.
Laurent Lassiaz, the CEO of Groupe Joa, stands at the helm of one of the country’s leading casino operators. His path to the gambling industry, having initially managed KFC and Pizza Hut operations in France, may appear unexpected but aligns closely with his understanding of customer service. "If you tell someone you will deliver their pizza in 30 minutes, that’s a promise – so you need to make sure you have everything in order to keep that promise," he explains. This philosophy has been instrumental in his approach to the casino sector.
After successfully leading KFC in France, Lassiaz transitioned into a broader role, ultimately joining Club Med where he faced a new kind of challenge: ensuring a consistent customer experience across various holiday destinations. "I liked the challenge so I took it on, and enjoyed it for ten years. It was really fascinating to develop the same customer experience in different countries with new rules and different workforces," he reflects.
The next pivotal moment in his career came when a headhunter from the casino industry reached out. His extensive background prepared him well for this new opportunity. "In the casino industry, you have the food and beverage side, shows, and events to manage. The only difference is the gaming aspect, which is essentially mathematical. You don’t design your product; you buy it and focus on the surrounding experience, service, and quality," he remarks.
Groupe Joa ranks as France’s second-largest casino operator, overseeing 33 casinos in a landscape of over 200, ranging from small venues with limited slots to larger integrated resorts. France's regulatory framework prohibits slot machines in venues that only offer them without live dealer games, ensuring all establishments cater to a richer gaming experience with a blend of slots and classic table games.
Among these casinos, slots constitute the largest share of revenue, contributing between 75% and 82% of the overall €2.8 billion gross gaming revenue. Introduced in the early 1980s, slots have since become a cornerstone of the gaming industry, but Lassiaz points out a shift in player preferences. "The new players are much younger and their focus is not really on slots. It’s much more on table games and electronic table games because you can play it for cheaper. They want a sense of control in their gaming experience," he notes.
This shift has seen the older demographic, who traditionally enjoy slots for their social aspect, contrast with younger players who seek the thrill of beating the house. Lassiaz highlights that those who frequent casinos often do so to socialize, knowing they may not win big, while the younger crowd strives for profitability in their choices.
The French market is largely a local affair, sharply contrasting with Monaco, which attracts a wealthier clientele and operates under different dynamics. "Monaco is a very specific market, which doesn’t work at all like the French one. Its profitability relies heavily on high rollers, unlike the casual player profile typical in French casinos," he clarifies. The average spend at Groupe Joa's casinos is around €80, a stark contrast to the lavish spending depicted in films like Casino Royale.
Lassiaz makes clear that due to the local nature of the French casinos, they exhibit resilience against economic fluctuations. "The casino is a local leisure destination. When the economy is shaky, people tend to cut back on large expenses, but local leisure is the last thing they will sacrifice," he explains, underscoring the cultural integration of casinos within local communities. This deep-rooted connection is further cemented by regulatory requirements for casinos to provide gaming, entertainment, and food and beverage services, a tradition dating back to Napoleon's era decisions on casino licensing.
Competition among casinos is fierce, with customers often switching based on experience rather than the games offered. "Players switch from one casino to another because you have two or three near your home. The gaming side is quite similar; the key differentiators are customer experience, hospitality, and additional offerings," he elaborates.
Groupe Joa has implemented distinctive strategies, including enhancing non-gaming options to attract diverse clientele. Montrond-les-Bains, developed about 15 years ago, serves as a model for this approach with its modern design and balanced allocation between gaming and non-gaming activities, from sports bars to restaurants and entertainment venues.
The subject of iGaming cannot be overlooked in discussions about the gambling industry in France. Currently unregulated, Lassiaz believes that the land-based sector is not threatened by online casinos. "We bring so many things to the table that help us resist this potential proposition. However, regulating online gaming could create a new vertical for us," he states, advocating for a connection between online licenses and land-based operations.
Concerns about the black market persist, with Lassiaz noting that illegal gambling activities continue to thrive amid regulatory challenges. He believes that France's land-based sector remains vital due to its integration with local communities, providing significant tax revenues to municipalities. "The local contribution to the city is huge, and we often cover up to 50% of the city’s expenses," he mentions, emphasizing the interconnectedness of casinos with their local environments.
Looking ahead, Lassiaz is optimistic about growth opportunities for Groupe Joa beyond acquisitions. "We keep testing new F&B concepts, new escape rooms, and similar initiatives to enhance our casinos. There’s still room to improve organics. Acquisitions will follow as we identify small groups or independent operators within the market," he adds. Furthermore, there are plans to advocate for new casinos in regions lacking them and explore international growth potential, applying what he describes as the "Joa Sauce" – an operational standard they believe could succeed across European markets.
