FDJ: A transformation on a European scale under the leadership of Stéphane Pallez
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17 Dec 2024 •
Reading time: 3 minutes Since her arrival at the head of Française des Jeux (FDJ) ten years ago, Stéphane Pallez has overseen a real revolution. Once considered a “sleeping beauty”, FDJ has become a key player in gambling in Europe. In an interview with Les Échos, she looks back on the major changes she has initiated, the successes recorded and the challenges ahead.
Global metamorphosis
“FDJ is no longer the same company it was ten years ago,” says Stéphane Pallez. Under her leadership, the company has diversified its activities and become international. While online lottery represented only 3% of stakes in 2014, this figure has now reached 14%, with an annual growth of 15%. In total, 5.5 million customers play online out of the 27 million that FDJ has in France.
The FDJ’s IPO in 2019 was a turning point. It allowed it to diversify its shareholder base, attracting 500,000 individual shareholders, 400,000 of whom are still present. The share price has almost doubled since its IPO, rewarding investors with regular dividends, including during the health crisis.
The rise of online gambling
The FDJ has not only revolutionized online lottery. It has also invested massively in sports betting and recently made a breakthrough in online poker and horse racing betting thanks to the acquisition of ZEturf. The high point of this strategy remains the acquisition of Kindred for 2.5 billion euros, a transaction that positions FDJ in seven of the ten main European online gaming markets.
“Kindred allows us to develop our business on a European scale,” says the manager. With this transaction, FDJ becomes the third player in the French market, notably integrating the Unibet brand.
FDJ is neither for nor against the opening of online casinos on the French market. However, Pallez remains cautious, emphasizing the increased risks of addiction associated with this type of game. According to her, an impact study will have to be conducted before any possible authorization.
An omnichannel strategy
Despite the rise of digital, Stéphane Pallez insists on the importance of physical points of sale, particularly bars, tobacconists and newsagents. “We have invested to create an omnichannel model that connects the physical and the digital,” she explains. The goal is to allow players to switch seamlessly between the two channels using a single account. This initiative, which will begin in 2025, is the result of an agreement with the physical network partners.
International expansion and controlled diversification
FDJ does not intend to stop there. Already present in 30% of its activity outside France, the company is banking on strategic acquisitions and calls for tenders to conquer new markets. The example of the acquisition of Premier Lotteries Ireland (PLI), the operator of the Irish lottery, illustrates this strategy.
In addition to gaming, FDJ is expanding its activities, such as with Nirio, their payment service. With Nirio, customers can pay for everyday expenses (bills, rent, etc.) at approved points of sale. According to Stéphane Pallez, this service strengthens the local network and supports commercial partners.
A responsible company
Despite its ambitions, FDJ remains attentive to its social responsibility and the fight against addiction. The development of online gaming allows, for example, better identification of players and the implementation of controls such as “affordability checks” which quantify the amounts that a person can play according to their income.
“We seek to balance growth and player protection to ensure long-term sustainability.”
With its potential entry into the CAC 40 and a well-crafted European strategy, FDJ is asserting itself as a leader in gambling. Diversification and innovation will remain at the heart of FDJ’s model under the leadership of Stéphane Pallez, who is determined to meet the challenges of a rapidly evolving sector.