Banijay Group’s CEO has criticised the regulatory framework in Germany while expressing his frustration at the scale of the black market serving what is Europe’s largest economy.
Responding to a financial analyst’s question during the company’s ‘strategic business update’ held on Thursday, 26 March, François Riahi said Germany “is a country where regulation is too tough – it’s not adaptive”.
He continued: “You have a part of the market, which is still a black market. [It is] unregulated, with no protection for the player [and] with no protection for minors.”
Riahi’s comments come five months after Betclic parent Banijay Group announced it was to acquire a 65% majority stake in Germany’s leading multichannel betting brand, Tipico Group, creating Europe’s fourth-largest operator. The deal also included Tipico subsidiary Admiral.
However, Germany remains one of the most restrictive markets in the world due to rules that include a €1,000 per month cap on deposits and a maximum online slots stake of €1 per spin.
Meanwhile, operators pay a punishing 5.3% turnover tax on online slots and poker, and table games are regulated at a state level.
A study commissioned by the regulator, the GGL, and published earlier this month, estimates the country’s channelisation rate to be just 77%, though some industry stakeholders have questioned whether the leakage to the black market is being underestimated.
Riahi said bringing together powerful operators like Betclic and Tipico will be beneficial for lobbying governments when it comes to regulations.
“We believe that with our new setup – our new European dimension – it will also be our job to try to convince the different governments [that] there’s no interest for anyone to have a black market developing when the regulation is too stringent.”
Riahi, who also referenced France and its online casino ban for impacting channelisation, said the German authorities have started to “take into account what is going on in the black market”.
He noted: “We definitely feel Germany is underpenetrated in terms of legal markets. To get [players] to legal [operators] can produce a lot of growth for Tipico moving forward.”
As for bringing together Betclic and Tipico, Banijay Group told investors earlier this week the Tipico acquisition will propel the business towards achieving annual revenue of €10bn (£8.6m) in 2029.
Riahi said Betclic and Tipico “share the same DNA” but that the combination of the two “will make each brand stronger”. He also hailed the enlarged business a “truly a pan-European platform”.
The CEO added: “In this business, powerful brands are a crucial asset, and we have three of them, each deeply recognised in their local markets and seen as clear leaders.”
Banijay Gaming – the division that houses Betclic and Tipico within Banijay Group – has become the number one sports betting operator on continental Europe and fourth overall in Europe, the company stated in its presentation slides.
Between them, Betclic and Tipico generated revenue of €3.1bn in 2025, with Betclic accumulating slightly the most of the two operators, a total of €1.6bn.
Furthermore, management expects to achieve around €100m in synergies in the midterm, including €70m in operating expenditure (opex) and €30m from capital expenditure synergies.
Banijay Group has call options to increase the position in Tipico to 72%, though Riahi explained at the strategic business update that it would eventually be “more probably 80%”.
“Ultimately, we will be the sole shareholder alongside the Betclic and Tipico shareholders, who are bringing significant value thanks to their deep knowledge of the industry and the markets where we are operating,” he said.
Unique active players topped seven million last year, while the product mix skews heavily towards sports betting (82% of revenue). Almost four-fifths (78%) of revenue was online.
As for their standing in their respective markets, management said Tipico is the number one in Germany for sports betting and online gaming, while Betlic holds gold medals in France for sports betting and poker.
Betclic is also the leader in Portugal for online sports betting and icasino, number two in Poland when it comes to online sports betting and is out in front in the Ivory Coast for both online verticals, according to Banijay Group.
That said, Riahi underlined the opportunity for growth in Europe due to increasing digital adoption and the fact GGR per player remains below its potential in several of the business’ core markets.
In Germany, GGR per adult of €19 is significantly below France (€32), Poland (€30) and Portugal (€49), Banijay Group pointed out. “This gap highlights clear opportunity for further growth for our leading brands,” Riahi remarked.
Aside from Banijay Gaming, Banijay Group is focused on TV and film production and content. Betclic and Tipico were a combined 42% of total group revenue in 2025 on a pro forma basis.
The post German regulations are “too tough” and “not adaptive”, bemoans Banijay Group’s CEO first appeared on EGR Intel.
François Riahi made the remarks as he outlined the path for growth for Betclic and recently acquired Tipico, while highlighting how GGR per adult remains below its potential in several core markets
The post German regulations are “too tough” and “not adaptive”, bemoans Banijay Group’s CEO first appeared on EGR Intel.