FDJ completes acquisition of Irish National Lottery operator

La Française des Jeux (FDJ) has completed its acquisition of Premier Lotteries Ireland (PLI), which holds the exclusive rights to operate the Irish National Lottery until 2034.

FDJ acquired PLI from the Ontario Teachers’ Pension Plan Board, An Post and An Post Pension Fund for €350 million, with the transaction approved by the Irish National Lottery regulator last month.

The deal marks FDJ’s first venture operating a lottery outside France and reflects the company’s strategic ambition to become an international B2C operator in lottery, sports betting and online gaming.

“La Française des Jeux has opened a new chapter in its history by fulfilling its ambition to expand its international presence as a lottery and online gaming operator,” said FDJ chairwoman and CEO Stéphane Pallez. “The synergies between FDJ and Premier Lotteries Ireland will draw on our respective and acknowledged skills to offer people in Ireland a recreational, responsible range of games.”

While operated by PLI, the Irish National Lottery will continue to be owned by the Irish State for the benefit of Good Causes.

“FDJ’s backing marks the beginning of an exciting new chapter in PLI’s history, which will benefit Ireland’s National Lottery and its many stakeholders,” said PLI CEO Andrew Algeo. “I am grateful to both Ontario Teachers’ and An Post who have been generous supporters of PLI, and the National Lottery has grown substantially and sustainably on their watch.

“The PLI team looks forward to further improving the Irish National Lottery with FDJ and contributing to FDJ’s international lottery expansion.”

In 2022, PLI reported gross gaming revenue (GGR) of €399 million and net gaming revenue of €140 million, with an EBITDA margin comparable to that of FDJ.

PLI has held the Irish National Lottery licence since 2014 and holds exclusive rights to operate the lottery until November 2034.

With more than 200 employees, PLI currently offers a range of 40 games, available through a diversified network of more than 5,300 points of sale as well as online, with over 15 per cent of sales generated online.

Draw games make up two-thirds of the lottery’s sales, and instant win games the remainder. Last year PLI redistributed 65 per cent of its GGR, equivalent to nearly €260 million, to more than 4,000 charities and Good Causes.

A strategic plan aimed at accelerating PLI’s growth and boosting profitability is being jointly drawn up.

The plan is based on sharing the two operators’ best practices and on FDJ’s experience to enhance PLI’s instant win games portfolio, boost the draw games player base, and further improve the digital experience for players in Ireland.

Any new games or changes to existing ones remain subject to regulatory approval and need to go through a triple-locked process; they must be consistent with the provisions of the National Lottery Act 2013; they must adhere to the terms of PLI’s operating licence; and they must be approved by the Regulator of the National Lottery following regulatory assessment.

Shares in La Française des Jeux SA (PA:FDJ) were trading marginally higher by 0.39 per cent at €30.68 per share in Paris Monday morning.