FDJ United continues to face difficulties in developing its sports betting segment. Its attempt to enter the international market coincided with tax increases and tighter regulations in several countries.
The French company, which is 50% state-owned, reported third-quarter revenue of €864 million, down 3% compared to the same period in 2024 (€890 million). Revenue for the nine months ending in September 2025 decreased by 2.1% to €2.73 billion (compared with €2.79 billion for the same period in 2024).
A noticeable contrast can be seen between FDJ United’s two main business areas – betting and lotteries. The latter significantly outperformed the former in the third quarter. Revenue from online betting and gaming dropped by 15.6% year-over-year – from €248 million to €209 million – while income from French lotteries and betting rose by 2.1%, from €582 million to €595 million. However, an increase in France’s gambling tax – from 54.9% to 59.3% of gross gaming revenue (GGR) as of July 1 – negatively affected performance.
“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,” said Stéphane Pallez, Group Chairwoman and CEO.
“In this context, the Group deepens its transformation and performance plan in 2025, and pursues the operational implementation of its strategy, in line with the growth objectives of its Play Forward 2028 plan.”
Nevertheless, taxation is not the only reason behind FDJ United’s challenges with betting income. Its impact is felt more strongly on profits and EBITDA. Taxes often come hand in hand with regulatory changes – which have proven to be the real problem.
FDJ United has offered sports betting in France since the days it was known as La Française des Jeux (FDJ). The company strengthened its market presence in October 2024 by acquiring the Swedish company Kindred. This move allowed FDJ United to enter the Dutch and UK markets through the Unibet sportsbook brand and the online casino 32Red. Although both markets are mature and profitable, the timing of the deal was not ideal – both countries are undergoing regulatory transitions. In 2023, FDJ also acquired Premier Lotteries Ireland (PLI), operator of the Irish National Lottery, for €350 million.
In the Netherlands, since the market’s relaunch in 2021, strict advertising restrictions have been introduced, including bans on sponsorships and the participation of athletes in advertisements. In the UK, the industry is adapting to new rules resulting from a broad review of gambling legislation.
As noted earlier, FDJ United’s French lottery and retail betting segment performed well during the quarter, though betting revenue came under pressure due to tax changes. Income from the French lottery remained the main growth driver, increasing by 2.5% to €508 million, supported by strong sales of draw-based and instant games. Revenue from retail betting remained stable until affected by the tax increase.
The Group’s new international lottery segment also showed modest growth – up 0.3%, with revenue of €44 million. Although the figures are small, it is worth noting that there was no decline. Given its ownership of the Irish National Lottery operator, the company may increasingly rely on its domestic and lottery businesses as a stable foundation.
Nevertheless, FDJ plans to expand its current cost-cutting program to mitigate the impact of rising taxes on betting and gaming revenues.
The company expects to close 2025 with revenue of around €3.7 billion and adjusted EBITDA of approximately €900 million, with an EBITDA margin exceeding 24%.
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