Nirio: the FDJ financial service that worries casinos
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22 Dec 2024 •
Reading time: 3 minutes In January 2023, La Française des Jeux (FDJ) launched Nirio, an innovative payment service designed to simplify the management of consumers’ day-to-day finances. Presented as a solution for paying bills at FDJ sales outlets, Nirio quickly established itself as a player determined to extend its influence over local services. However, this initiative is not to everyone’s taste. French casino operators, grouped under the umbrella of ‘Casinos de France’, recently voiced their fierce opposition to the project, sparking a debate about the responsibility and ethical boundaries of gambling companies.
A letter to the ANJ
In a letter to the French National Gaming Authority (ANJ), Casinos de France made serious accusations against Nirio. According to the group, this service blurs the boundaries between financial management and gambling, creating fertile ground for risky behaviour. Allowing consumers to manage their finances and gamble in the same place encourages dangerous behaviour.
The starting point of this controversy is a Nirio advertisement bearing the slogan ‘To save money, put yourself in the red’. Casino operators see this as an indirect incitement to irresponsible financial behaviour. In response, FDJ clarified that this expression referred to the red colour of the Nirio card, while asserting that there was no underlying intention to promote risky practices.
FDJ’s legal response
La Française des Jeux was quick to respond to the criticism. In a press release, it points out that Nirio is operated by FDJ Services, a separate subsidiary approved by the Autorité de contrôle prudentiel et de résolution (ACPR). FDJ also points out that the Nirio Premio card, a Visa card with systematic authorisation, does not allow bank overdrafts. ‘It is lawful for a company holding a legal monopoly to operate in competitive markets’, FDJ asserts.
Despite this defence, mistrust persists. Casino operators fear that FDJ’s diversification into financial services will accentuate the blending of consumer goods and gambling. These concerns are echoed in the work of the ANJ, which has announced that it is studying the follow-up to this affair.
Controversial diversification
Since the partial privatisation of FDJ in 2019, the company has continued to diversify its activities to strengthen its presence in local shops. With Nirio, it is offering customers the opportunity to pay their electricity, gas and telephone bills at its partner retailers. However, this strategy raises a fundamental question: how far can a company benefiting from a public monopoly expand without creating conflicts of interest or risks for consumers?
‘Diversification is a strategic tool, but it must fall within ethical and legal limits,’ explains an expert in financial regulation. For casino operators, this expansion could undermine their own business model, which is already under pressure from the rise of online gaming.
The outcome of this controversy will largely depend on the position taken by the ANJ. If it deems that Nirio poses a risk to consumers, it could impose restrictions on its development. If not, FDJ could continue to expand its influence in the financial services market.