Boulogne-Billancourt (France), 26 July 2021 (12:45 p.m.) – La Française des Jeux (FDJ), France’s leading betting and gaming operator, has issued an update on the appeals related to the legal framework adopted prior to FDJ’s privatisation.
FDJ takes note of the announcement by the European Commission on the launch of an in-depth investigation of France on the appropriateness of the sum of €380 million paid by FDJ to the French State as “remuneration for exclusive rights granted” in respect of the lottery and of sports betting at points of sale.
FDJ reiterates that as part of its privatisation and under the French Pacte Law, the French State secured, for a period of 25 years, the exclusive rights that the Group had previously held for an unlimited period. In exchange for securing these rights, FDJ paid the French State €380 million, following compliance approval by the French Holdings and Transfers Commission (Commission des participations et des transferts).
In its Registration Document dated 17 October 2019, prior to its initial public offering, FDJ highlighted the risks of appeals against the legal texts enabling its privatisation, in particular those arising from the Pacte Law.
In its 2020 Universal Registration Document, FDJ stated that the French Council of State (Conseil d’Etat) had already ruled in 2020 on a request for a referral to the Constitutional Council (Conseil constitutionnel) as a Priority Constitutionality Issue, which it rejected on 19 August 2020, and that a number of appeals were still pending before the Council of State.
FDJ is available, along with the French State, to answer any questions from the European and French authorities over the course of these proceedings to provide any information necessary to demonstrate the compliance of this legal framework with French and European law.