In Europe and the US, lottery operators are increasingly venturing into sports betting to expand their offerings. However, lotteries operate differently in the sports betting market as they compete with private operators instead of being monopolies with a focus on funding charitable causes.
For example, France’s FDJ operates its sports betting brand, ParionsSport, separately from its lottery activities. This separation serves multiple purposes, including enhancing brand awareness by explicitly referencing the world of sport and betting. It also allows for targeting different player profiles, as lottery games appeal to a wide audience of all ages and genders, while sports betting is geared towards a younger male audience with an interest in sports.
Moreover, many lotteries globally market their sports betting products through specific brands or subsidiaries to clearly differentiate them from their lottery activities. In France, ParionsSport encompasses a wide range of betting products in an increasingly liberalized online sports betting market, facing tough competition from international operators.
While lotteries have a monopoly in retail betting, online sports betting operates in a competitive market. Therefore, FDJ has separate approaches for retail and online. With exclusive rights for sports betting at points of sale, the group has established ParionsSport Point de Vente for retail and ParionsSport En Ligne for online. These different frameworks allow for offering a greater variety of bets and sports online, along with features like live betting, video streaming, and a higher maximum player payout ratio.
Trust and brand image are important factors in attracting players to lotteries. FDJ, as the leading gaming operator in France with a history dating back nearly a century, is considered a reference for players and non-players. The company’s long-standing presence, diverse and secure gaming range, and extensive distribution network contribute to winning and retaining the trust of French players. Additionally, lotteries contribute to funding various good causes that benefit the community, further enhancing their appeal.
In France’s highly competitive online sports betting market, FDJ aims to establish itself as a top-tier operator. To achieve this, the company strives to deepen customer insight, provide a seamless user experience, and offer competitive odds. Major sporting events in 2021, such as the UEFA Euro 2020, are expected to drive growth in sports betting stakes and attract new players.
Within FDJ’s player base of 23 million customers, there is some crossover between lottery players and sports bettors, but it remains a minority. Sports betting typically appeals to a younger, more male demographic compared to lottery games. The online platform operates separately for lottery and sports betting activities, while retail locations offer both within the same physical space but under different brands.
FDJ also offers B2B services to other lotteries through Sporting Solutions. More lotteries are choosing to run their own sportsbooks as it contributes to their business growth, offers diversification, and helps in marketing their offerings in a competitive environment while strengthening customer relationships and loyalty.
