Regulation brings stability, the market becomes more resilient, Banijay bets on European gambling landscape.

Despite facing tax pressures and policy restrictions, European entertainment giant Banijay remains optimistic about the highly regulated European market. In a presentation to investors on March 26, the parent company of Tipico and Betclic reaffirmed its confidence in the current operating regions. CEO François Riahi specifically affirmed the "regulatory stability" of the French and German markets, believing that this provides a predictable operating environment for the business. Data shows that Betclic is the leader in the French online gambling sector, and Tipico holds a leading position in the German gambling market, with its Admiral gambling business in Austria also in a strong leading position. To be honest, maintaining such a market position in an increasingly regulated environment like Europe is not easy. Banijay announced the acquisition of Tipico in October last year, stating that this move "strengthens its leadership in the sports betting and gambling sectors by adding two leading countries." Riahi told investors that Europe remains "one of the largest and most attractive regions globally," accounting for half of the global gambling market share, and unlike the United States, Europe is characterized by higher regulatory visibility and stability. Top players accelerate integration, regulation as a natural moat Interestingly, this strategy of leaning towards highly regulated markets seems to be becoming a common choice among top gambling groups. Last year's acquisition of Kindred by FDJ United also took similar actions, integrating these markets. This reflects a trend: as taxes rise and regulations tighten across Europe, small and medium operators struggle, while top players are taking the opportunity to consolidate their positions. Senior gambling strategist Vaughan Lewis commented in November last year: "This indicates that the core driver of value creation is coming from regulated markets. Regulatory challenges themselves constitute an entry barrier, which often enhances the value and sustainability of top operators." Riahi also emphasized to investors that the current market has a robust framework protecting existing players, forming effective entry barriers and reducing the risk of market disruption. Excluding the black market, Riahi estimates that by 2024, the European gambling market will account for 44% of the global total revenue of 97 billion euros. He believes that France, Germany, Austria, Poland, and Portugal are currently underserved markets. Taking France as an example, he anticipates a growth potential of 5 to 7 times, with the number of players increasing from 3 million to 20 million. Banijay's goal is to achieve 100 million euros in synergies between Tipico and Betclic in the medium term, with about 70 million euros in operational synergies and about 30 million euros in capital expenditure synergies. German regulation "too strict," black market issues remain unresolved Despite being optimistic about the growth prospects in Europe, Riahi also candidly addressed the challenges of the German regulatory environment when answering analysts' questions. "German regulation is too strict, and there is still an unprotected black market in the market," he said. However, he also pointed out that the industry has a responsibility to cooperate with policymakers to address the increasingly severe threat of the black market. He believes that France also has similar issues in the online gambling sector. As the group expands its footprint in Europe, they have a responsibility to persuade governments that when regulation is too strict, black markets will thrive, which is not beneficial for anyone. German regulatory authorities recently reported that the black market accounts for only 23% of the total market, but industry insiders warn that this estimate is "conservative," and the actual figure may be close to 50%. In terms of market forecasting, Riahi stated that Banijay's brands have not experienced any customer loss in the European sports betting sector. He noted that regulation in Europe is very strict on novelty and non-sports markets, so the prediction market has no room for development in the region. For more global gambling market dynamics and regulatory trends, continue to follow PASA official website. ———— This article is from "PASA-Global iGaming Leaders," a gambling industry news channel: https://t.me/pasa_news Gambling original depth channel: https://t.me/gamblingdeep Free data reports: @pasa_research PASA Matrix: @pasa002_bot PASA official website: https://www.pasa.news