La Francaise des Jeux (FDJ)

The French national lottery was established after WW1 to raise funds for veterans and today continues to support those objectives with associated charities owning 15% of the equity.

The lottery was established in most regions as an alternative to a tax hike to raise government funds. It has a long and cultured past with consistent participation and it’s rare to find an uncontested monopoly publicly listed with 20 years remaining on their French license and 10 years on the recent acquisition of Premier Lotteries Ireland trading at 15x forward earnings.

29.64% of all prize winners since 2004 fall under La Française des Jeux Société licensed regions and in tandem with an accretive sports betting business future cashflows are expected to grow while remaining stable during uncertain times.

Contents:

1. Business Model and Opportunity

2. Capital allocation & M&A

3. Risk & Uncertainties

4. Financials

5. Valuation