The European Commission says that the French gambling provider has not received unfair state aid

PARIS: The compensation paid by French gambling operator Française des Jeux (FDJ) for its monopoly on operating lottery games and sports betting is in line with competition rules after adjustments, the European Commission said on Thursday.

The Commission’s decision, which follows an in-depth state aid investigation, confirms the legality of French legislation to privatize FDJ, including the company’s exclusive rights to offer lottery games and offline sports betting for 25 years.

The company’s shares rose about 6 percent on the Paris stock exchange at around 2:11 p.m. GMT.

The European Union’s executive body received two complaints in 2020 alleging that FDJ received unjustified state aid because the amount of 380 million euros ($412.98 million), or 15.2 million euros per year, that the company had to pay was too low was.

The EU said that as a result of its investigation, some changes were made to the parameters of the calculation of the amount, leading to a new total compensation of 477 million euros, an amount in line with the bloc’s rules.

FDJ said it was a statement that it took note of the Commission’s decision and the re-evaluated state aid figure.

“FDJ welcomes the closure of this investigation and the European Commission’s confirmation, in line with the decision of the French Conseil d’Etat of April 14, 2023, that the legal framework adopted when the group was privatized was robust.

($1 = 0.9201 euros)