Banijay has taken a significant step towards establishing an omnichannel gambling business in France, a country known for its restrictive gaming laws. On July 6, the French media powerhouse, which owns Betclic and recently acquired Tipico, announced its intention to buy Groupe JOA's network of 33 regional casinos across France. The completion of this transaction is expected in the latter half of the year, subject to regulatory approval. Both companies expressed excitement about the potential "omnichannel opportunity" this acquisition presents.
However, the context is complicated. France lacks legal online casinos, and data from H2 Gambling Capital indicates that retail betting staked declined to €10.5 billion in 2025, down from €11 billion in 2024. This raises the question: what exactly is Banijay investing in?
Industry analysts suggest the appeal of the deal is rooted in three main factors: a steady profit source from land-based casinos, potential for lower customer acquisition costs in the future, and a strategic advantage in what might become the largest unregulated online casino market in Europe.
Ollie Woodward, a deal advisory director specialized in the betting and gaming sector at BDO, noted that the deal's valuation reflects both current operations and future possibilities. He highlights the clear advantages of an omnichannel approach, connecting online sports betting, gaming, retail gaming, and hospitality.
Nigel Hinchliffe, managing director at Alvarez & Marsal, pointed out that it's difficult to justify the deal solely on existing land-based operations, suggesting Banijay is making a calculated gamble on the potential for online casino liberalization in France. He believes the cash flow generated by JOA can support Banijay’s online ventures in Europe, while also hinting that should iGaming be regulated, the tax implications could be severe, making the omnichannel strategy essential for competitive edge.
JOA’s chairman, Laurent Lassiaz, who will continue his leadership role in the newly formed entity, previously stated that online gaming does not threaten France's land-based casino market. He sees online licenses tied to casino operations as a major growth opportunity. Lassiaz described himself as "defender of the evolution from brick-and-mortar to click-and-mortar," indicating a proactive stance towards eventual iGaming regulation.
Christian Tirabassi, a senior partner at Ficom Leisure, placed the deal within wider European trends, emphasizing the convergence of gaming products and channels. Despite the current ban on online casinos, he posited that integrating a robust digital presence with a strong land-based network enhances customer loyalty and acquisition, while the physical presence offers an advantage in an evolving regulatory landscape.
While Tirabassi cautioned that any business decision should not over-rely on potential regulatory changes, he added that a significant portion of French online casino demand is currently met through unregulated offshore operators, with the black market estimated at €1.5 billion annually.
The backdrop of the French casino landscape is significant, with about 200 local casinos established under historical licensing regulations dating back to Napoleon. According to H2 data, casino revenue in France reached €32.2 billion in 2025, with gross gaming revenue (GGR) around €2.8 billion, primarily from slots. This market is sustained by local customers, making it resilient even during economic downturns, as leisure spending is often prioritized. Lassiaz remarked that for many French people, casinos serve as important local leisure destinations.
Politically, French casinos are woven into local economies, contributing a significant GGR tax to host cities, which can cover up to half of municipal expenses. Lassiaz noted that this dependency fosters caution around online gaming regulations, indicating that while immediate liberalization is unlikely, existing operators like JOA will be well-positioned if online licenses are eventually granted.
Banijay's CEO, François Riahi, framed the acquisition of JOA as part of a broader strategy to become a leader in land-based gaming in France, mirroring previous successful expansions in Germany and Austria.
The role of private equity in this transaction introduces an interesting twist. Blackstone and Kings Park Capital, which have invested in JOA for some time, were described in Banijay's announcement as supporting the deal, but analysts interpreted their involvement as providing an exit for existing investors rather than new capital for French casinos. Woodward described current private equity interest in European land-based gaming as selective, focusing on strong cash-flow operators, rather than prompting a generalized sentiment shift.
Contrasting Banijay’s strategy are challenges faced by mid-sized game studios. Helen Walton, co-founder of G.Games, voiced concerns about the increasing number of studios flooding the market, which may push many out of business as larger companies dominate. She predicted that many mid-market studios could fail, as consolidation does not appear sensible in the content sector.
The performance of leading gaming suppliers highlights these challenges. Evolution experienced flat revenue figures, and Playtech's revenue fell significantly due to strategic restructuring and tax hikes in the UK.
The shift in interest from larger firms towards regulated, cash-generating, omnichannel operations becomes a clear trend. Woodward anticipates that value will increasingly concentrate around assets that combine scale, regulatory approval, and strong customer relationships, rather than standalone content positions, while distressed sales may become more common among weaker firms.
Hinchliffe added that large private transactions could catalyze further M&A activity, as they alter perceptions of business value when privately owned. He identified trends towards regulated omnichannel operations and consolidation among suppliers over the next 12 to 18 months.
Ultimately, Walton acknowledged a harsh industry shakeout, driven by external market pressures rather than organic growth. This could lead to a divide between ultra-cheap, AI-produced content and innovative independent studios.
Consequently, Banijay's acquisition of 33 provincial casinos reflects a dual strategy: securing a stable, cash-generating operation while placing a strategic bet on a potentially lucrative online market in the future. As Hinchliffe noted, the significant upside in iGaming combined with the inherent stability of local casino operations paints a compelling picture within the evolving landscape of the European gaming industry.
