By privatizing the FDJ, the French state has rung the bell of addiction

© JACQUES DEMARTHON/AFP/Archives Bruno Le Maire and Stéphane Pallez (CEO of FDJ) in Pantin, September 20, 2016.

In November 2019, the French state sold 52% of its shares in Française des Jeux (FDJ) to the public, promising that this would make it possible to finance innovation without losing control over its risky activities. Some were quick to call the operation a success, while others warned of the long-term effects. 

Are addiction cases private? The State used to pocket some 100 million euros in dividends each year thanks to its shareholding in the FDJ, but with the PACTE law, it decided to change the rules of the game. With the stated aim of “giving companies the means to innovate, grow and create jobs”, the Emmanuel Macron-Alexis Kohler duo looked into the case of the FDJ.

Bruno Le Maire's “Strategic State”

A cash cow dating back to the period of the broken faces, it was then the 4th most important player in the world in gambling, 2nd in Europe. Yes, but Bruno Le Maire is a gambler: “Do we want a State that is content to collect dividends, or a State that prepares the future of the French ? A strategic State ?”, he asked at the time. And his colleague Darmanin added: “We sell the Française des Jeux, we keep the regulation so that nothing happens, and with this money, we create the innovation fund that allows us to make the electric battery that will perhaps save Renault or Peugeot tomorrow.”

The plan was as follows: sell shares to many French people so that the 20% of shares retained by the State always constitute a majority. To do it properly, we call it popular shareholding, and it works. Some 500,000 people bought shares at €19.50/u, the State collects 2 billion euros, and the FDJ is listed on the stock exchange. Victory ?

The future of some, the failure of others

In the short term, we could say yes. Bercy appears to the French as a good father, ready to 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 any other, which sells goods like any other. It will have escaped no one that we are talking here about gambling, sports betting, lotteries… in short, addiction. And it is precisely to regulate all of this that the State had to keep significant shares in FDJ. 

On this subject, Bruno Le Maire wanted to be reassuring, hammering home that a control authority would be created specifically for this occasion to regulate the market. The National Gaming Authority (ANJ) was created in January 2020. Its objectives ? “Prevent excessive gambling and ensure the protection of minors; ensure the integrity of gaming operations; prevent fraudulent or criminal activities; ensure the balance between the different gaming sectors.”

Except that an investment is only interesting when the value of the share increases over time. De facto, the 500,000 French people who bet on the development of the FDJ will be keen for others to go and play, and that is what happened. Online and in person, the FDJ is triumphant: its report for the first half of 2024 shows an increase in revenue at all levels, in particular thanks to its latest acquisitions (ZEturf, Premier Lotteries Ireland, Kindred).

In concrete terms, while the poorest are ruining themselves a little more by playing, the wealthiest (those who buy shares and launch themselves into start-ups) are lining their pockets. This is all the more dangerous since online gaming is booming, welcoming younger players with open arms, as can be seen on page 20 of the 2023 report.

It only takes bread and circuses to make a population unhappy, dependent and fragile, and the Macron government has never stopped proving it.

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