2024-10-27 14:55:00
In November 2019, the French state sold 52% of its shares in Française des Jeux (FDJ) to the public, promising that this would allow it to finance innovation without losing control over its risky assets. Some were quick to call the operation a success, while others warned of long-term effects.
Are addiction cases private? The State pocketed around 100 million euros in dividends every year thanks to its participation in the FDJ, but with PACTE lawdecided to change the rules of the game. With the declared aim of “giving businesses the means to innovate, grow and create jobs”, the Emmanuel Macron-Alexis Kohler duo took on the FDJ case.
“The strategic state” by Bruno Le Maire
A cash cow from the Broken Faces era, he was then the 4th biggest gambling player in the world, 2nd in Europe. Yes, but Bruno Le Maire is joking: “Do we want a state that is content with receiving dividends, or a state that prepares the future of the French?”, he asked at the time. And his colleague Darmanin adds: “We sell the Française des Jeux, we maintain the rules so that nothing happens and with this money we create the innovation fund that will allow us to create the electric battery that will perhaps save Renault or Peugeot tomorrow.”
The plan was as follows: sell shares to many French people so that 20% of the shares retained by the state would always constitute the majority. To do it well, we call it popular ownership, and it works. Around 500,000 people bought shares at 19.50 euros/u, the state raised two huge billion euros and FDJ was listed on the stock exchange. Victory?
The future of some, the failure of others
In the short term one could say yes. Bercy seems to be a good father for the French, ready to both play and protect. To finance disruptive innovation and prepare for the future, the PACTE law provides for a “Fund for Innovation and Industry of 10 billion euros”, and the sale of FDJ shares contributes to its development.
The problem is that FDJ is not a company like the others, which sells goods like the others. It will have escaped anyone’s attention that we are talking about gambling, sports betting, lotteries… in short, addiction. And it is precisely to regulate everything that the State has had to maintain significant shares in the FDJ.
On this issue Bruno Le Maire wanted to reassure, insisting on the fact that a control authority will be created specifically for this occasion to regulate the market. The National Gambling Authority (ANJ) was born in January 2020. Her goals? “Prevent excessive gambling and ensure the protection of minors; ensure the integrity of gaming operations; prevent fraudulent or criminal activities; ensure balance between the different sectors of the game”.
Except that an investment is only interesting when the value of the security increases over time. Indeedthe 500,000 French people who bet on the development of the FDJ will want the others to go and play, and so it happened. Online and in person, the FDJ triumphs: his report for the first half of 2024 shows an increase in revenues across the board, particularly thanks to its latest acquisitions (ZEturf, Premier Lotteries Ireland, Kindred).
Concretely, while the poorest ruin themselves a little more by gambling, the richest (those who buy shares and launch start-ups) fill their pockets. This is all the more dangerous as online gaming is a success, welcoming younger players with open arms, as we can see on page 20 of Report 2023.
Bread and games are enough to make a population unhappy, dependent and fragile, and the Macron government has continually demonstrated this.
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