In the third quarter of 2025, FDJ United reported a 3% decrease in revenue, largely due to increased taxation in key European markets, including France. This period saw revenue fall to €864 million, compared to the €890 million from the previous year. The decline aligns with the company’s recent integration of Kindred Group, acquired in October 2024 for €2.45 billion, whose results are now part of FDJ’s financial statements as of Q4 2024.
FDJ United highlighted that the revenue decrease would have been negligible if not for various gambling tax hikes across Europe, particularly in France. The increased taxes had a considerable financial impact, costing the company €21 million, with €18 million attributed to France alone. These tax rises took effect on 1 July, affecting both land-based and online gaming operations. The most significant hike was in online betting, with the tax rate surging to 59.3% from the previous 54.9% of gross gaming revenue (GGR). Earlier, FDJ projected that these changes would lead to a €45 million reduction in its 2025 EBITDA.
In addition to tax hikes, gambling operators in France also faced increased social welfare contributions from July. The overarching sentiment within the company suggested a strategic re-evaluation was necessary. “The change in FDJ United’s revenue at the end of September reflects the prolonged decrease in our online betting and gaming business in certain markets and the impact of higher taxation on gaming, particularly in France since 1 July,” remarked Chairwoman and CEO Stéphane Pallez.
Despite these challenges, FDJ United experienced some growth in specific areas. The French lottery and sports betting sectors remained robust, generating €595 million in revenue, up 2.1% from the previous year. Without the €14 million impact from the gaming tax, revenue growth would have been a healthier 4.5%.
Specifically, lottery revenue increased by 2.5% to €508 million, fueled by the popularity of draw and instant games. The sports betting segment maintained steady figures at €87 million, despite competing against the high benchmark set during the Euro 2024 football tournament. Conversely, online betting and gaming took a substantial hit, with revenue dropping 15.6% to €209 million, influenced by a €7 million additional tax burden, mainly from France and partially from Romania. The company also noted stricter regulations in the UK and the Netherlands that contributed to the downturn.
FDJ United’s international lottery revenue showed a modest rise of 0.3% to €44 million, while revenue from payments and services fell by 1.8% to €16 million.
For the year to date, FDJ United’s revenue reached €2.73 billion, slightly down by 2.1% from the restated €2.79 billion in the same period last year. The French lottery and retail sports betting segment saw a 3.1% increase, totaling €1.89 billion, driven by a 4.8% boost in lottery revenues but countered by a 4.8% drop in sports betting.
Online betting and gaming revenue saw a decline of 12.9%, amounting to €675 million, primarily due to elevated taxes in France and regulatory constraints elsewhere. Furthermore, international lottery revenue decreased by 11.5% to €124 million, mainly due to the sale of Sporting Group at the end of 2024. Payments and services revenue also slipped by 1.6% to €47 million.
Looking forward, FDJ United anticipates a slight decline in revenue for the fourth quarter. The forecast suggests diminished returns from the French lottery and retail sports betting, attributed to several “exceptional events” in draw games. However, the company expects online betting and gaming figures to stabilize.
FDJ United projects full-year revenue to surpass €3.70 billion, potentially indicating a year-on-year decline from last year’s €3.79 billion. Recurring EBITDA is expected to reach approximately €900 million, with a margin exceeding 24%. In response to the current challenges, FDJ plans to intensify its cost-cutting measures as part of its strategic 2025-2028 performance plan. The company reiterated its commitment to its transformation and performance goals, aligned with its Play Forward 2028 strategy. The leadership emphasized the necessity of adapting to ensure long-term growth and stability in a rapidly evolving market landscape.
4.3/5
