Merkur AG Enters France: Acquisition of Société Française de Casinos Confirmed

Merkur AG is making a major move in the European gambling industry by announcing its entry into the French market. The German company, owned by the Gauselmann Family Foundation, has reached an agreement to acquire Société Française de Casinos (SFC). This acquisition includes seven land-based casinos located across France. This step is not merely an expansion of its physical footprint but a calculated strategic entry into a market that is currently seeing intense M&A activity from major international players. France has always been a significant yet complex market, and Merkur's entry signals a long-term commitment to the region.

The timing of the deal is particularly noteworthy. In January 2025, the Austrian competitor Novomatic acquired Vikings Casinos and its 11 establishments. Later, in July, Banijay Group, the parent company of Betclic, acquired JOA Groupe and its 33 resorts. Merkur joining this trend highlights the strategic importance of French land-based assets. One specific advantage for Merkur and Novomatic is the French regulatory model regarding gaming machines. Operators must typically purchase machines through specialized supply companies known as Sociétés de Fourniture et de Maintenance (SFM). As both German groups manufacture their own equipment, owning casinos allows them to bypass these intermediaries, thereby increasing their operational margins.

Numbers and facts

The financial details of the Merkur-SFC deal demonstrate high confidence in the French market. Merkur has agreed to pay 6.20 Euro per SFC share, which represents a staggering 196 percent premium over the current trading price of 2.40 Euro. For the current year, SFC is projected to generate Gross Gaming Revenue (GGR) of 22.5 million Euro and Net Gaming Revenue (NGR) of 13.3 million Euro. The expected EBITDA stands at approximately 3.5 million Euro. Such a high premium suggests that Merkur is not just buying current revenue but is investing in the potential future value of these licenses, especially in the context of digital expansion.

Background

Industry experts believe these acquisitions are part of a broader push to prepare for the legalization of online casinos in France. Currently, the French online market is limited to sports betting, horse racing, and poker. However, there is growing momentum for a regulatory model similar to the JADE project proposed by the trade group Casinos de France. This model would likely favor existing land-based operators when issuing new online licenses.

"From a regulatory development perspective, it is hard to look beyond the fact that the deal puts Banijay in a unique position: as a spearhead to argue for online operators and as one of the top three land-based operators, able to influence a range of key regulatory and commercial conversations." - Jake Pollard, European Correspondent

By securing a physical presence, Merkur ensures it has a seat at the table during upcoming regulatory discussions. The combination of land-based assets and their existing expertise in international online gaming markets makes them a formidable contender if and when France opens its digital doors to casino games.

Why it matters for German players

For players based in Germany, this acquisition does not change the domestic legal framework defined by the Interstate Treaty on Gambling 2021 (GlüStV 2021). Merkur continues to be a leading licensed provider in Germany, subject to strict oversight by the GGL. German players are still bound by the 1,000 Euro monthly deposit limit across all licensed sites, managed via the LUGAS system, and the 1 Euro stake limit on virtual slots. However, Merkur's growth in France strengthens the company's overall financial health, ensuring they remain a stable and reliable provider for the German market, where consumer protection and legal compliance are paramount.

What it means for GGL-licensed casinos

The move indicates that licensed operators are looking for growth opportunities in regulated or soon-to-be-regulated markets to counter the influence of unlicensed offshore sites. For the German GGL-licensed community, Merkur's expansion serves as a benchmark for how to leverage manufacturing and land-based expertise to gain a foothold in new territories. It highlights the difference between established groups with physical assets and offshore entities from Curacao or Malta that lack such infrastructure. This stability is a key factor that regulators like the GGL value when maintaining a safe gambling environment in Germany.