On July 6, French media group Banijay, known for owning Betclic, announced its intention to purchase Groupe JOA's network of 33 regional casinos across France through its gaming division. This acquisition, pending regulatory approval, is anticipated to be finalized in the latter half of 2023. Both parties have expressed their excitement about the "omnichannel opportunity" this deal presents.
However, the context raises questions. France currently lacks legal online casinos, and data from H2 Gambling Capital indicates a slight decrease in retail betting from €11 billion in 2024 to €10.5 billion in 2025. So, what exactly is Banijay investing in?
Industry analysts and advisors assert that Banijay's rationale includes three primary factors: access to a reputable land-based revenue source immediately, the potential to acquire customers at a lower cost in the future, and an early position in what could be the largest unregulated online casino market in Europe.
Ollie Woodward, a deal advisory director at BDO specializing in betting and gaming, remarked that the deal's valuation likely balances the current land-based cash flow with a long-term bet on the eventual regulation of online casinos in France. He emphasized that the omnichannel aspect is significant, facilitating a customer ecosystem that integrates online sports betting, gaming, retail gaming, and hospitality.
Nigel Hinchliffe, managing director at Alvarez & Marsal’s transaction advisory group, emphasized that the deal’s viability cannot solely depend on land-based operations. He framed Banijay’s approach as a calculated risk, noting that while the upside from online casino liberalization is noteworthy, the downside is manageable, especially since JOA continues to generate revenue that can be reinvested into Banijay's expanding online operations in Europe. If online gaming regulations are eventually established in France, the expected high tax rates may make a comprehensive omnichannel service, along with reduced customer acquisition costs, a crucial competitive advantage.
The licensing model that Banijay envisions is not merely speculative. Laurent Lassiaz, chairman of JOA, indicated that iGaming doesn't threaten the traditional casino market in France but suggested that licenses linked to existing operations could become a new growth avenue. Lassiaz stated, "I’m the defender of the evolution from brick-and-mortar to click-and-mortar," highlighting a strategy where JOA aims to capitalize on iGaming once it becomes legalized.
Expanding on the European context, Christian Tirabassi, a senior partner at Ficom Leisure, noted that the deal aligns with a larger trend in the gaming sector toward convergence among products and channels. He asserted that even with online casinos currently prohibited, integrating a robust online presence with a leading land-based network enhances customer acquisition, loyalty, and data utilization. He pointed out that as marketing regulations tighten, having a physical presence could provide a competitive edge for online operations.
While discussing the potential for iGaming liberalization, Tirabassi cautioned that any deal should not rely solely on regulatory changes, viewing the opening of the market as an opportunity for future value rather than the primary motivation for investment. He acknowledged that a significant portion of French online casino demand is currently being met by offshore operators, estimating the illegal market at around €1.5 billion annually.
Banijay's acquisition entails robust assets, with France housing just over 200 casinos due to historical licensing restrictions. H2 data forecasts casino turnover to reach €32.2 billion by 2025, with gross gaming revenue totaling approximately €2.8 billion, of which slots comprise a significant portion. The casinos tap into local clientele, maintaining resilience as recreation expenses are often the last cuts consumers make during economic downturns. Lassiaz communicated, "For the French population, the casino is a local leisure destination."
Moreover, French casinos contribute substantially to municipal finances, with gaming taxes sometimes covering a significant fraction of local expenses. Lassiaz remarked that this funding impact makes the regulatory climate cautious, meaning immediate liberalization seems unlikely. Yet, should licenses emerge, JOA’s network of 33 casinos places it in a prime position to capitalize.
Banijay's CEO, François Riahi, who anticipates the takeover of Tipico will elevate them to the fourth largest sports betting operator in Europe, has likened the JOA acquisition to previous successful expansions in Germany and Austria, aiming for leadership in land-based gaming within another of Banijay's core markets: France.
The involvement of Blackstone and Kings Park Capital in this deal remains somewhat ambiguous, as both firms have been long-standing investors in JOA. Woodward noted that they might be perceived as the sellers in this transaction, suggesting this isn’t just a new investment outlook but a private equity exit from the casino scene.
Woodward described the appetite for European land-based gaming among private equity firms as selective, pointing toward specific opportunities linked to established regional operators with solid cash flows rather than a significant market shift. Alternatively, Tirabassi felt there is still substantial capital available for engaging gaming prospects that offer clear turnaround or consolidation narratives.
The JOA deal encapsulates where gaming capital is currently inclined: it favors large, regulated, revenue-generating, omnichannel operations. On the flip side, the mid-market for games content is increasingly avoided due to saturation. Helen Walton, co-founder of G.Games, pointed out that as more studios and games emerge, the top spots are becoming dominated by the largest suppliers, leading to narrowing margins. With AI-enhanced studios negatively impacting revenue-sharing arrangements and rising certification costs, she anticipates an increase in closures among smaller firms, stating that mergers or acquisitions are unlikely in this segment.
Walton articulated her belief that the potential barriers to entry and ongoing challenges in the market mean that firms focusing on content alone face severe hurdles. Meanwhile, major suppliers like Evolution and Playtech are witnessing mixed results, confirming market pressures and a preference for distinctive, high-value content over increased quantity.
The gaming industry landscape reveals a bifurcation in investment strategies as Woodward predicted the concentration of value will remain with assets that combine regulation, scale, customer ownership, and operational integration, with interest directed toward established operators and platform-level assets instead of standalone content producers.
Hinchliffe added that forthcoming large private equity deals may spur further mergers and acquisitions, suggesting a different valuation perspective under private ownership. Tirabassi identified recurring themes in the upcoming 12–18 months, including regulated omnichannel operators and efficiency-enhancing technology assets across gaming sectors.
Despite recognizing the harsh environment for mid-market studios, Walton believes it was a long-overdue industry correction rather than a fleeting issue. She predicts a polarized market where imitations produced through AI reside at one end, major suppliers dominate the other, while authentic innovators occupy the narrow space in between.
In essence, Banijay has acquired a business that currently turns a profit while also placing a bet on an uncertain future in France’s online gambling market. As Hinchliffe suggested, the attractive combination of robust local business dynamics and the possibility of seizing opportunities in France’s future iGaming market signals a pivotal shift in gaming’s newly evolving value landscape.
