On July 6, Banijay, a French media group known for owning Betclic and the recent acquisition of Tipico, announced a significant move in the gambling industry by agreeing to purchase Groupe JOA's network of 33 regional casinos in France, through its gaming division. This transaction, pending regulatory approvals, is slated to be completed in the latter half of this year. Both parties highlight the potential for an "omnichannel opportunity" in this deal.
However, it is important to note that France currently does not permit legal online casinos, and data from H2 Gambling Capital reveals that stakes for retail betting have decreased from €11 billion in 2024 to €10.5 billion in 2025. This prompts the question: what exactly is Banijay paying for within a constrained market?
Industry analysts who spoke with iGB explain that Banijay is pursuing three key advantages: a dependable land-based revenue source now, a more cost-efficient customer base in the future, and a potential head start in one of Europe’s largest unregulated online casino markets.
BDO's Ollie Woodward, a deal advisory director with expertise in the gambling sector, suggests that the valuation of the deal reflects both current performance and a long-term bet on the potential regulation of the online casino sector in France. He emphasizes that the omnichannel opportunity encompasses a wide customer ecosystem that includes online sports betting, gaming, retail gaming, and hospitality.
Nigel Hinchliffe, managing director at Alvarez & Marsal's transaction advisory group, argues that the deal’s viability cannot rely solely on the land-based aspects. He believes Banijay’s strategy involves a calculated risk, as the significant potential of online casino liberalization contrasts with a limited downside. According to him, if online gaming in France is eventually regulated, the tax implications could be high, making a comprehensive omnichannel offer and lower customer acquisition costs crucial.
Hinchliffe also notes that if future licenses incorporate land-based operations, the acquisition could turn out to be a savvy business move.
Laurent Lassiaz, chairman of JOA, stated that iGaming does not pose a threat to the land-based sector and that licenses tied to casino operations would be substantial for the business. He emphasized a shift from traditional brick-and-mortar establishments to a combination of physical and digital operations.
Ficom Leisure's Christian Tirabassi situates this deal within a larger industry trend where product and channel convergence is becoming essential. He points out that even without legal online casinos, having a solid digital presence paired with a strong physical location can enhance customer acquisition, loyalty, and data utilization.
Tirabassi also acknowledges that while any transaction should not hinge on impending regulatory changes, many French consumers currently turn to offshore operators to meet their online casino needs, resulting in a black market valued at approximately €1.5 billion annually.
Banijay’s acquisition targets a robust asset in a country with just over 200 casinos, a situation born from licensing rules initiated by Napoleon which limited casino licenses to specific locations. H2 forecasts indicate a projected turnover of €32.2 billion in the casino sector for 2025, with a gross gaming revenue of approximately €2.8 billion, predominantly from slot machines.
The casinos serve a local population, with visits averaging €80, demonstrating resilience even during economic downturns. Lassiaz remarked that in France, casinos are key leisure destinations for locals, securing their status amidst varying economic conditions.
French casinos contribute significantly to local economies through gross gaming revenue taxes, sometimes covering nearly half of municipal budgets. This creates a cautious approach among stakeholders regarding the prospect of liberalizing online gambling.
Banijay's CEO, François Riahi, noted that this acquisition mirrors their earlier strategies in Germany and Austria and positions the company as a leader in land-based gaming in France, one of their key markets.
While the role of investors Blackstone and Kings Park Capital in this deal appears somewhat ambiguous, some experts suggest they may effectively be acting as sellers after having invested in JOA for an extended period. Woodward describes private equity interest in European land-based gaming as selective, favoring regional operators with robust cash flows.
The scenario painted by this acquisition contrasts with the mid-market games-content sector which faces challenges in attracting investment. Helen Walton of G.Games points to an oversaturation of studios launching new games while top positions are increasingly occupied by a few major suppliers, resulting in margin pressures.
With rising operational costs and the entrance of AI-enabled studios affecting revenue share agreements, many mid-sized developers are struggling, leading to closures rather than mergers.
The disparity in market interest is evident. Tier-one suppliers like Evolution and Playtech are adjusting to market challenges and are not keen on acquiring smaller studios. While there is still interest from buyers, primarily towards differentiated assets, the pressures of valuation remain significant.
Looking ahead, market observers expect a continued concentration of value in large, regulated, cash-generative businesses with omni-channel capabilities. This strategic realignment in gaming M&A indicates a likely shift towards more distressed sales as weaker businesses seek capital.
As the gaming landscape evolves, Banijay's acquisition of JOA reflects a dual strategy: securing immediate returns from tangible assets while also positioning itself ahead of potential legislation that could unlock a lucrative online gaming market. The future remains uncertain, but as Hinchliffe points out, the calculation encompasses both ensuring a steady cash flow from existing operations and positioning for significant opportunities in the future.
