Merkur Enters France Through Société Française de Casinos Acquisition

German gambling group Merkur AG, owned by the Gauselmann Family Foundation, has agreed to acquire Société Française de Casinos (SFC), which operates seven land-based casinos in France.

The transaction is expected to complete in Q1 2027 and represents the third acquisition of a French land-based casino operator in the past 18 months.

In July, Banijay Group, the parent company of Betclic, agreed to acquire JOA Groupe and its 33 French resorts. In January 2025, German gaming group Novomatic acquired Vikings Casinos and its 11 establishments for an undisclosed sum.

Merkur has agreed to pay €6.20 per SFC share, representing a 196% premium to the group’s current share price of €2.40.

SFC expects to generate €22.5m in gross revenue, €13.3m in net gaming revenue and approximately €3.5m in EBITDA this year.

Growing Interest In French Casinos

The transaction has also prompted speculation about the potential for further consolidation in France’s gambling sector and the prospects for legalising online casino.

A possible regulatory framework could follow the JADE project proposed by Casinos de France (CdF), the trade association representing the country’s largest casino operators.

Under the proposed model, France’s land-based casino sector could be incorporated into a framework for regulated online casino.

SFC is not a member of CdF, although the proposed model would apply to the wider French land-based casino sector.

The acquisitions by Banijay, Merkur and Novomatic have therefore raised questions about the strategic value of owning established land-based casino operations alongside online gaming and betting businesses.

Gaming Machine Supply Model

France’s land-based casino market also operates under a distinctive gaming machine supply model.

French casinos are required to purchase gaming machines through companies known as sociétés de fourniture et de maintenance (SFM).

Merkur and Novomatic manufacture their own gaming machines, meaning their respective casino operations can use their own products without purchasing them through SFMs.

The model could allow the two German groups to improve margins at their own French resorts while continuing to supply gaming machines to other operators.

Potential For Further M&A

SFC’s status as a listed company also provides greater visibility into the value attached to the transaction.

Novomatic’s acquisition of privately held Vikings Casinos in 2025 was completed for an undisclosed amount, making it difficult to establish how much the German group paid for its 11 casinos.

With SFC operating seven casinos, Merkur’s €6.20 per-share offer provides a reference point for how the market is valuing French casino assets.

The transaction could therefore provide industry observers with an indication of potential valuations for future M&A activity in the French land-based sector.

Online Casino Remains Uncertain

The acquisitions do not guarantee that France will legalise online casino.

However, the expansion of Betclic, Merkur and Novomatic, alongside Belgian groups Circus and Golden Palace, means that France has an increasing number of casino stakeholders with both land-based operations and experience in online gaming and betting.

The combination of physical casino networks with online expertise, scale and distribution could give these groups a role in future discussions over the regulation of online casino in France.