The eco decryption. The State offers free shares of the Française des Jeux

The State will distribute between 2.5 million and 3 million free shares. The operation was scheduled for the privatization of the National Lottery in November 2019. The purpose of this offer was to attract investors. Three quarters of the 500,000 buyers of shares in the French Games will benefit because they kept their shares, despite the crisis. And they got a good deal: since its first listing in 2019, the FDJ stock has increased by more than 120%: 124% exactly.

The Française des Jeux was however affected, like the rest of the economy, during the first confinement, last year, its sports betting activity was almost stopped (there were no more competitions), and then, many outlets were closed. But since the fall, it has started soaring, and the profits of the FDJ too: in 2020, the National Lottery posted 214 million euros in profits.

It is as if the health crisis did not exist. The French play a lot of scratch cards, Loto, Euromillion, sports betting… This first quarter, the total stakes exceed 4.5 billion euros, more than before the crisis. Enough to ensure good performance in 2021 for the FDJ which, through its stability, becomes, even more than yesterday, a safe haven on the stock market

By selling its FDJ shares, in 2019, the State had recovered 2 billion euros. And every year, he continues to collect taxes on gambling. But the opponents of this privatization rightly believe that given the good solidity of the company, the State has sold off its family jewels. With this distribution of free shares, the State will still sell some of the capital of the FDJ tomorrow. As a result, he will therefore only retain 20% of the company’s capital. But according to the government, we have reached a floor, it will not go further: no cession of the State is envisaged even though it is looking for resources to pay the bill for the Covid crisis!

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