Banijay, the French media conglomerate behind Betclic and the recent buyer of Tipico, is venturing into a challenging gambling landscape. On July 6, the company announced its decision to acquire Groupe JOA, a deal that includes a portfolio of 33 casinos spread across France. This acquisition, pending necessary regulatory approvals, is expected to finalize in the latter half of this year. Both Banijay and JOA are optimistic about the potential for creating an omnichannel gambling experience.
However, the gamble comes amid a complex regulatory environment in France, where online casinos remain illegal. Data from H2 Gambling Capital indicates a slight decline in retail betting, with stakes falling to €10.5 billion in 2025 from €11 billion in 2024. This raises the question: what exactly is Banijay investing in?
Industry analysts suggest that the value of this acquisition lies in three key areas: the current profitability of traditional land-based casinos, the potential for lower customer acquisition costs in the future, and a strategic position in what could become the largest unregulated online casino market in Europe.
Ollie Woodward, director at BDO's gaming advisory, highlights that the valuation likely reflects the balance between immediate assets and long-term speculation about the eventual regulation of iGaming in France. The prospect of an omnichannel strategy, integrating online sports betting, gaming, retail operations, and hospitality, adds further appeal to the acquisition.
Nigel Hinchliffe from Alvarez & Marsal echoes this sentiment, emphasizing that the deal's viability can’t rely solely on the current value of land-based operations. He sees it as a calculated risk, with Banijay betting on the positive outcomes of potential online casino regulations that could enhance its growth opportunities. Even if tough tax policies are expected when regulation occurs, he believes having a full omnichannel presence will be crucial for reducing customer acquisition costs.
Laurent Lassiaz, chairman of JOA, remarked on the interplay between traditional casinos and future iGaming regulations, stating that licenses connected to casino operations could create significant new revenue streams. He asserts this integration is essential for the evolution from physical establishments to online platforms.
Christian Tirabassi, a senior partner at Ficom Leisure, places the acquisition in a wider European context, suggesting it represents ongoing industry trends toward product and channel convergence. He argues the combination of robust digital operations with a strong physical presence is increasingly advantageous for customer acquisition and loyalty, especially as marketing regulations tighten.
Despite the delays in iGaming liberalization, the demand for online casino options in France has led many to utilize offshore operators, with estimates suggesting a black market worth approximately €1.5 billion annually.
Banijay is acquiring a significant asset, given that France has just over 200 licensed casinos. The history of these establishments dates back to licensing rules set by Napoleon, which dictate that casinos can only be opened in specific locations. H2 data for 2025 show a turnover of €32.2 billion for casinos, with a gross gaming revenue (GGR) of around €2.8 billion—mostly from slot machines, which account for 75%-82% of revenue.
French casinos maintain a strong local clientele, making them resilient during economic downturns, as leisure spending typically remains stable. Lassiaz highlighted how integral these establishments are to local communities, often funding a significant portion of municipal expenses through GGR taxes, which explains the hesitance among policymakers to change the status quo regarding online regulations.
Banijay’s CEO, François Riahi, framed the JOA acquisition as a critical move in strengthening its position as a leader in land-based gaming in France, drawing parallels to previous successes in Germany and Austria.
While the role of Blackstone and Kings Park Capital in this deal remains somewhat ambiguous, industry observers suggest they might be viewed as sellers rather than mere investors in the French casino market. This perspective contrasts with Banijay's presentation of the acquisition, indicating a private equity exit.
Interest from private equity in European land-based gaming appears to be selective, focusing on regional operators that demonstrate consistent cash flow. As the landscape shifts, the attraction is evident for stable, regulated, cash-generating businesses in the omnichannel space. Conversely, mid-tier game content studios struggle to attract capital as competition and revenue pressures mount.
As the industry shifts towards an environment dominated by larger operators and the increasing commoditization of content, the future seems polarized between low-cost AI-driven productions and established major suppliers. Helen Walton of G.Games emphasizes that the oversaturation of the market leads to a decline in profitability for mid-sized studios, likely resulting in more closures than mergers and acquisitions.
The JOA acquisition stands as an example for where investment capital is heading—not into mid-market gaming content, but into robust, cash-generating, omnichannel operations. While Banijay possibly paid a premium for a functioning business today, it also secured a strategic position for future growth, maintaining its advantage in what could develop into a major iGaming market in Europe.
