Banijay upbeat on ‘resilient’ markets offering ‘regulatory stability’

(AsiaGameHub) –   During an investor presentation on March 26, Banijay Entertainment—parent company of Tipico and Betclic—reaffirmed its confidence in the strictly regulated European markets where it currently operates.

In its investor deck, the operator stated that Betclic maintains the top position for online betting in France, while Tipico holds the leading spot across Germany’s betting sector. The group added that Tipico’s Admiral betting business also holds a strong leading position in Austria.

Banijay noted that its acquisition of Tipico—first announced in October 2023—“strengthened its leadership in sports betting and gaming by adding two new countries with leading positions.”

Group CEO François Riahi commented that Europe remains “the largest and one of the most attractive regions globally for the business.”

According to Riahi, Europe represents “half of the global [gaming] market, which importantly, and unlike the US, was characterised by greater regulatory visibility and stability.” The CEO pointed out that operating in highly regulated markets enhances the predictability of their business model.

Notably, France, Germany, and Austria are considered among Europe’s more restrictive markets. France does not legally permit iGaming, while Germany has been grappling with strict player restrictions—including stake and deposit limits—and a large black market.

Currently, only one licence is available in Austria for lotteries and online gaming products. This 15-year permit is held by Win2day, a brand of Austrian Lotteries (a subsidiary of Casinos Austria, which also owns all 12 land-based casino licences).

Top-tier operators consolidating in strictly regulated markets

However, this push by leading European gaming groups to prioritise heavily regulated markets appears to be part of a broader trend. FDJ United, which acquired Kindred last year, has made similar moves to consolidate the sector in these markets.

This strategy supports the trend of tier-one players consolidating the sector as smaller operators struggle to navigate tax hikes amid tightening restrictions across the continent.

Speaking to iGB on this topic last November, veteran gambling strategist Vaughan Lewis said: “This shows that significant value creation is driven by regulated markets. Regulatory challenges create entry barriers, which tend to increase the value and sustainability of leading operators.”

Addressing investors, Banijay’s Riahi stated that the operator’s current markets are underpinned by robust frameworks to protect established players. This, he said, creates meaningful entry barriers and reduces the risk of disruptions.

Excluding the black market, he estimated Europe’s gambling sector accounts for 44% of the global €97 billion in GGR in 2024.

He noted that France, Germany, Austria, Poland, and Portugal are currently underserved markets. For France, he expects a 5-7x growth opportunity—from a market of three million players to up to twenty million.

Banijay is targeting €100 million in synergies between Tipico and Betclic over the mid-term, split into €70 million in opex and approximately €30 million in capex synergies.

Germany’s regulation deemed “too strict”

Despite his confidence in European growth, the Banijay CEO expressed frustration with Germany’s challenging regulatory landscape while answering analysts’ questions.

“Germany is a country where regulation is too tough, and a portion of the market still consists of an unprotected black market,” he said.

But Riahi added that it is the sector’s role to work with policymakers to tackle growing black market threats.

“The same applies to iGaming in France, so we believe that with our expanded European presence, it will be our job to convince governments that it is in no one’s interest to let a black market develop when regulation is too stringent and intended to protect,” he noted.

Germany’s regulator recently reported that its black market accounts for only 23% of the total market size. However, stakeholders warned this was an overly “conservative” estimate, with the actual figure closer to 50%.

On prediction markets, Riahi said Banijay’s brands have not experienced any leakage in European sports betting. He noted that European regulation is heavily restrictive of novelty and non-sports markets, leaving no room for prediction markets to develop in the region.