FDJ has completed its €2.45bn acquisition of Kindred Group, marking a significant shift in the European gaming industry.
This deal, originally proposed in January, saw FDJ claim 90.66% of Kindred’s Swedish Depository Receipts by October 2nd.
Kindred’s board had unanimously recommended the offer, leading to swift shareholder approval.
Stéphane Pallez, CEO of FDJ, expressed her excitement, calling the acquisition a “strategic move for sustainable and profitable growth.”
She highlighted Kindred’s “recognised technological excellence and strong brand presence,” particularly in markets like the UK and Sweden.
La Française des Jeux (FDJ) est en passe de faire l’acquisition de Kindred Group qui comprend, entre autres, Unibet et 32RED, pour 2.45 milliards $.
Avec cette acquisition, la FDJ deviendra un poids lourd européen des jeux d’argent en ligne.#teamparieur #teamparieurs pic.twitter.com/wa4kIhzjpQ— Bet2invest 🇫🇷 🇧🇪🇨🇭🇨🇦 (@bet_2_invest) October 7, 2024
Kindred Group, which owns brands like Unibet and 32Red, significantly bolsters FDJ’s international reach.
FDJ’s presence in online sports betting and lottery operations, alongside Kindred’s B2C offerings, now account for 30% of its business.
Additionally, their traditional French lottery market remains dominant, comprising 64% of operations.
FDJ has been active in expansion, acquiring ZEturf for €175m in 2023 and Premier Lotteries Ireland for €350m, further diversifying their portfolio.
In the first half of 2024, FDJ’s digital revenue saw a 39.8% increase, contributing to a total group revenue of €1.43bn, up 10.8% from the previous year.
Concerns grow as the EU targets gambling mechanics, manipulative ads, and prepares for digital fairness reform
The recent EU Fitness Check has raised concerns about the growing overlap between gambling and gaming mechanics, particularly through features like loot boxes.
These mechanics, often mimicking gambling behaviours, are seen as potentially harmful to younger players.
The @EU_Commission released the findings of the Digital Fairness Fitness Check of key 🇪🇺 consumer protection laws.
It evaluates if the current rules are fit for purpose to ensure a high level of consumer protection in the digital environment 📱.
Read more ↓
— EU Consumer Affairs (@EU_Consumer) October 4, 2024
The review also highlighted manipulative advertising practices in the online gambling sector, such as falsely claiming low stock or high demand to influence consumer behaviour.
Hidden influencer marketing, especially when targeting minors, was another key issue flagged by consumer organisations.
As new digital rules, such as the Digital Services Act and Digital Markets Act, come into effect, their impact on gambling platforms remains uncertain.
The upcoming Digital Fairness Act is expected to address unethical practices, including addictive designs and manipulative marketing tactics, signalling potential changes ahead for the online gambling and lottery sector.
