Building an omnichannel gambling business in a country that restricts many avenues presents a challenge, yet on July 6, Banijay, the French media conglomerate that owns Betclic and acquired Tipico last year, took a significant step by agreeing to purchase Groupe JOA's network of 33 regional casinos in France through its gaming division. The deal is expected to close in the latter half of the year, pending regulatory approvals. Both Banijay and JOA have expressed a keen interest in the "omnichannel opportunity" this acquisition offers.
However, France currently lacks legal online casinos, and data from H2 Gambling Capital indicates that the amount wagered on retail betting dipped slightly from €11 billion in 2024 to €10.5 billion in 2025. So, what exactly is Banijay investing in?
Industry analysts have outlined three key aspects driving the value of this deal: a robust land-based revenue source today, a potential for a more cost-efficient customer acquisition model in the future, and an early position in a largely unregulated online casino market that could emerge in Europe.
Regarding the potential upsides, Ollie Woodward, a deal advisory director at BDO who specializes in due diligence for betting and gaming, explained that the valuation reflects a balance between current assets and a long-term bet on the legalization of iGaming in France. He emphasized the clear omni-channel opportunities, which would create an interconnected customer experience combining online sports betting, gaming, retail environments, and hospitality.
Nigel Hinchliffe, managing director at Alvarez & Marsal's transaction advisory group, stated that the deal's viability cannot rest solely on the strengths of land-based operations. As he pointed out, "the upside of online casino liberalization is significant while the downside is more limited," as JOA continues to generate cash flow that can fund Banijay's expanding online operations in Europe. If iGaming regulations are introduced in the future, the tax implications will likely be steep, making a comprehensive omnichannel strategy—and the lower costs of acquiring customers it generates—an essential competitive advantage.
Should online licenses be linked to land-based operations, this deal could be viewed retrospectively as a brilliant strategic move. JOA’s chairman, Laurent Lassiaz, who will continue to lead the company, mentioned in June that he sees no danger to brick-and-mortar establishments from iGaming, suggesting that licenses tied to real casino operations would create a valuable new business area. He advocates for shifting from traditional services to a more integrated, digital-focused model.
The acquisition also aligns with a broader trend across Europe. Christian Tirabassi, a senior partner at Ficom Leisure, noted that there is a general movement towards blending different products and delivery channels in the gaming sector. Operators today must utilize every regulatory opportunity available and provide offerings through all relevant platforms. Despite the ban on online casinos, having a strong digital presence combined with a prominent land-based network enhances customer loyalty, data utilization, and acquisition efforts. In an environment where marketing regulations are tightening, having a physical presence can give online operators a significant advantage.
While Tirabassi warns against relying solely on regulatory changes for the transaction's value, he acknowledges that a substantial segment of French online casino demand is currently satisfied by offshore operators, with the black market estimated at around €1.5 billion each year.
Banijay is acquiring a resilient asset, with France hosting slightly more than 200 casinos, a situation rooted in licensing rules dating back to Napoleon’s era. H2's data forecast total casino revenue at €32.2 billion in 2025, with the sector's gross gaming revenue at approximately €2.8 billion, primarily driven by slot machines, which represent 75% to 82% of this figure.
Notably, this market caters primarily to locals, with an average visit costing about €80, making it a stable revenue source even during economic downturns. Lassiaz remarked that for many French residents, casinos serve as accessible leisure destinations.
French casinos contribute significantly to local economies by paying gross gaming revenue taxes, sometimes funding as much as half of municipal expenses. Such fiscal contributions mean stakeholders are cautious about making abrupt changes, especially concerning online regulation, which renders swift liberalization unlikely. However, possessing 33 casinos and strong community ties would place Banijay in a favorable position should licenses become available in the future.
Banijay CEO François Riahi framed the JOA acquisition in the context of enhancing the company's presence in land-based gaming in key markets, particularly France, following the Tipico deal that is poised to make Banijay the fourth-largest sports betting and gaming operator in Europe upon the merger with the German company.
The involvement of Blackstone and Kings Park Capital in this deal adds another layer of complexity. While Banijay's announcement indicated these funds are backing the transaction, analysts suggest that this could represent a private equity exit rather than a fresh investment in French casinos. "They can actually be viewed as the sellers here," Woodward noted, indicating that their role is more about exiting than investing amidst selective private equity interest in the gaming market.
The market for European land-based gaming appears selective, with capital gravitating towards opportunities with solid cash flows while avoiding the mid-market segment, as Helen Walton of G.Games described the ongoing pressures mid-sized studios face due to overcrowding and competition from larger suppliers. With AI-driven studios further complicating profit margins, closures among smaller players are likely.
In sharp contrast, the JOA deal reflects a trend where investment capital favors large, regulated operators that provide omnichannel services. In this landscape, buyers prefer to acquire businesses with unique offerings or that can navigate newly regulated markets; however, significant gaps remain in valuations during negotiations, complicating sales.
As analysts look towards the future, the expectation is that value in gaming M&A will concentrate on regulated, scalable operators and assets that maintain strong customer ownership, with ongoing deal activity anticipated due to substantial capital backing. Despite current market pressures, the creativity spurred by the shakeout may lead to diverse industry outcomes, with Banijay’s acquisition of JOA epitomizing a strategic approach to addressing the evolving landscape of gaming in Europe.
