Building an omnichannel gambling business in a country with significant restrictions poses a considerable challenge. On July 6, Banijay, a French media group known for owning Betclic and acquiring Tipico last year, announced its plans to buy Groupe JOA's network of 33 regional casinos throughout France, pending regulatory approvals. Both companies expressed excitement about the potential for what they term an "omnichannel opportunity."
However, the online casino landscape in France remains illegal, and data from H2 Gambling Capital indicates that retail betting stakes dipped to €10.5 billion in 2025 from €11 billion in the previous year. This raises the question: what exactly is Banijay investing in?
Industry analysts suggest that the answer involves three key factors: a strong land-based revenue source currently, potential for acquiring customers at a lower cost in the future, and an advantageous position in a largely unregulated online casino market in Europe.
According to Ollie Woodward, a deal advisory director at BDO with expertise in the betting and gaming sector, the deal's valuation reflects both current reality and a long-term bet on the future regulation of iGaming in France. He emphasized that the omnichannel opportunity is evident, presenting a customer base that spans online sports betting, gaming, retail venues, and hospitality.
Nigel Hinchliffe, managing director at Alvarez & Marsal’s transaction advisory group, noted that relying solely on land-based factors would not justify the deal, which should have occurred much sooner if that was the case. He described Banijay’s approach as a measured risk, suggesting that the benefits from an open online casino market could outweigh the associated risks, with JOA contributing steady cash flow to support Banijay’s online growth in Europe. Should France eventually regulate iGaming, he anticipates high tax burdens, especially at a time when a full omnichannel service could provide a competitive edge through reduced customer acquisition costs.
The notion of linking licensing to land-based operations is not far-fetched. Laurent Lassiaz, chairman of JOA, indicated that online gaming should not be viewed as a danger to France's land-based casinos, suggesting that licenses connected to casino operations could create a substantial new revenue opportunity. His stance is that rather than opposing iGaming, JOA intends to position itself favorably when regulations change.
Christian Tirabassi, a senior partner at Ficom Leisure, highlighted this acquisition within a broader European trend toward merging products and channels. He emphasized that modern operators need to offer everything that regulation allows through all available channels. While online casinos may be barred at the moment, combining a robust digital presence with a dominant land-based network can enhance customer acquisition and loyalty, where having a physical location could increasingly benefit online operators.
Tirabassi cautioned that any investments should not be based primarily on expected regulatory changes, though it is widely accepted that a large portion of the demand for French online casinos is currently being met by offshore operators. The black market in France is estimated to be around €1.5 billion annually.
At present, Banijay is acquiring a solid asset. France has over 200 casinos, a byproduct of licensing laws established during Napoleon’s period that restrict where casinos can operate. H2 data indicates that casino revenues in 2025 are projected to reach €32.2 billion, with gross gaming revenues (GGR) around €2.8 billion, 75% to 82% of which come from slot machines.
As a local leisure sector, the average casino visit costs about €80, which makes it resilient during economic downturns. Lassiaz remarked, "For the French population, the casino is a local leisure destination."
The political environment surrounding French casinos is significant as well. These casinos pay GGR taxes to their host municipalities, sometimes funding up to half of local budgets, leading to a cautious attitude toward liberalizing online regulations. This situation makes immediate change unlikely but positions an incumbent operator with 33 casinos favorably should licenses ever be granted.
François Riahi, Banijay’s CEO, characterized the JOA acquisition as part of a strategy akin to their success in Germany and Austria, stating that they aim to become a leader in land-based gaming in one of their core markets, France.
The role of private equity firms Blackstone and Kings Park Capital in this deal is somewhat ambiguous. While Banijay’s announcement credited their funds with supporting the transaction, industry experts have suggested they might be viewed more as sellers exiting their investments in JOA instead of as new investors in the French casino landscape.
Woodward described the private equity interest in European land-based gaming as selective, favoring regions with strong cash flow potential. Meanwhile, Tirabassi highlighted that ongoing interest in reshaping or consolidating gaming opportunities shows there remains capital available for attractive projects.
The transaction illustrates a snapshot of the sectors where gaming investments are currently focused: large, regulated, cash-generative, and omnichannel operations. Conversely, the mid-market games-content sector appears to be losing traction. Helen Walton, co-founder of G.Games, pointed out that while numerous studios are launching, market pressure is forcing many into financial difficulty. The increasing dominance of leading suppliers creates a margin squeeze, with businesses struggling to stay afloat amidst escalating costs.
As the dynamics shift, the contrast between thriving operators and those in distress may indicate future trends. Woodward concluded that the concentration of value will focus on assets that integrate regulation, scale, distribution, and customer relationships. Deal activity is expected to cluster in operators and platform-level assets rather than independent content suppliers.
Looking ahead, a harsh market correction seems inevitable according to Walton, who acknowledged that artificial growth driven by new markets has masked underlying issues. She predicts a future divided between low-cost AI-generated content and larger suppliers, with a small group of true innovators in between. This brings the focus back to Banijay's acquisition of 33 regional casinos, which represents both a stable business and a strategic move to position itself for potential changes in the iGaming market. Banijay had not responded to requests for comment at the time of publication.
