As global competition in online betting continues to grow, Stephane Pallez, director of FDJ, director of France’s national lottery, follows a strategy based on forming international partnerships and investing in technology. She recently attended the World Lottery Summit 2016 in Singapore to present FDJ Gaming Solutions, which sells lottery technologies, services and games to other gambling groups. FDJ already provides equipment, maintenance and advising services.
Pallez said, “Now is the right time as FDJ is growing to prepare for the future. We think there is room for a player like us, who clearly choose to invest in innovation.” She added, “I haven’t set a number target at this stage for our international expansion. This is all additional profitability for our investments in France.”
Pallez noted that last year FDJ supplied Portugal with a sports-betting platform. The company has developed a ticket partnership with China Welfare Lottery, the country’s second-largest lottery provider.
In 2015 FDJ generated revenue of $15.15 billion, ranking it the fourth after China Sports Lottery, China Welfare Lottery and Italy’s Lottomatica. The country receives more than $3.26 bill annually from sales of lottery tickets and scratch cards, sold at tobacco outlets across the country.
The heavily regulated French lottery is a state monopoly. FDJ was formed in 1933 by two World War I veterans’ groups to generate revenue for retired servicemen in need. After World War II, the French state took over the lottery with the veterans’ associations holding 20 percent.
Pallez joined FDJ in 2014 to help it attract younger players. “All lotteries are faced with the same challenge, which is how to remain attractive to the millennial population.” Pallez plans to update the current offerings of lottos, scratch cards and online games with innovations like King’s “Candy Crush” game, available on smartphones. She added FJD also plans to invest $544 million over the next three years to enhance IT systems and aid partners in developing new games and services.
“The main risk is not to take risks. Inaction is a risk. A monopoly which doesn’t innovate is a monopoly running a serious risk of being ‘Uberized,’’” Pallez said.
