PARIS (Reuters) -The fee France’s gambling provider Française des Jeux (FDJ) pays for its monopoly to operate lottery games and sports betting is in line with competition rules after adjustments, the European Commission said on Thursday.
The Commission’s decision, which follows an in-depth state aid investigation, confirms the legality of France’s legislation to privatise FDJ, including the company’s exclusive rights to provide lottery games and offline sports betting for 25 years.
Shares in the company rose around 6% higher on the Paris stock exchange by 1411 GMT.
The European Union’s executive body received two complaints in 2020 claiming that FDJ benefited from unjustified state aid because the amount of 380 million euros ($412.98 million), or 15.2 million euros a year, that the company had to pay was too low.
The EU said that as a result of its investigation, some changes to the parameters of the calculation of the sum were made which led to a new total remuneration of 477 million euros, a sum in line with the bloc’s rules.
FDJ said it a statement it took note of the Commission’s decision and the be re-evaluated state aid figure.
“FDJ welcomes the closure of this investigation and the European Commission’s confirmation, in line with the French Conseil d’Etat’s decision of 14 April 2023, that the legal framework adopted when the group was privatised was robust.
($1 = 0.9201 euros)
(Reporting by Tassilo Hummel; Editing by Sudip Kar-Gupta)
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