FDJ Approved to Purchase ZETurf by the French Regulator
Francaise Des Jeux, the largest gambling operator in France, has announced that the French
Competition Authority has approved the operator's proposed acquisition of ZETurf, the online horseracing betting operator.
Details of the acquisition were first released in November last year when FDJ revealed the group was preparing to purchase ZETurf for €175m.
Due to the size of both operators, the proposed purchase was referred to the competition regulators to check the combined company did not cause a monopoly in the gaming sector.
FDJ Looking for Market Expansion with Purchase
The main benefit of the purchase according to FDJ is to increase its presence in the online markets because ZETurf is one the biggest operators in the online French jurisdiction.
The horseracing operator enjoys a market share of 20% in its domestic market, as well as a significant footprint in Europe including the Netherlands, Belgium, and Spain.
FDJ Will Not Promote Its Monopoly Activities
The French Competition watchdog has raised concerns over competitive problems with the purchase. It feels FDJ has a monopoly on some of its services such as lottery, and scratch games, and the operator could use the account details of ZETurf to push its gaming activities in a market where the company enjoys a monopoly.
FDJ has responded to these issues and outlined steps it would take to ensure this did not happen.
The FDJ says it will not promote its lottery products to ZETurf customers and will restructure its group into a series of subsidiaries. It will also create a separation of accounts between different sectors within the merged group.