FDJ United Q3 revenue dips 3% driven by rising European gambling taxes

FDJ United reported a 3% year-on-year decline in revenue for the third quarter of 2025, attributing the drop primarily to higher gambling taxes in France and other key European markets. For the three months ending 30 September, group revenue stood at €864 million ($1 billion), down from a restated €890 million ($1.04 billion) in Q3 2024.

The year-on-year comparison was restated to reflect the inclusion of Kindred Group, which FDJ acquired in October 2024 for €2.45 billion ($2.86 billion). As such, the Q3 2024 figures assume Kindred had already been part of the business at that time, even though it was only consolidated into FDJ’s results from Q4 2024.

FDJ said the revenue would have remained stable if not for the increase in gambling-related taxes, especially in France, which alone accounted for €18 million ($21 million) of the €21 million ($24.5 million) overall tax impact during the quarter.

French tax changes implemented on 1 July raised the levy on online betting from 54.9% to 59.3% of gross gaming revenue (GGR), affecting both land-based and iGaming operations. The company had previously forecast these tax changes would reduce EBITDA by €45 million ($52.5 million) over the full year.

Social welfare contributions from gambling operators also rose in France from July onward, adding to the fiscal pressure. “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 Chairwoman and CEO Stéphane Pallez.

Despite these headwinds, the group saw modest growth in its core French lottery and retail sports betting operations, which rose 2.1% year-on-year to €595 million ($694.66 million). This included a 2.5% increase in lottery revenue to €508 million ($593 million), driven by draw and instant games. Excluding a €14 million ($16.3 million) tax impact, revenue in this segment would have grown by 4.5%.

Retail sports betting revenue remained flat at €87 million ($101.57 million), facing a tough comparison with Q3 2024, which had included part of the Euro 2024 football tournament.

Online betting and gaming, however, saw a 15.6% year-on-year decline to €209 million ($244 million). FDJ attributed this drop to an additional €7 million ($8.17 million) tax impact, largely in France and Romania, as well as the effects of stricter regulatory environments in the UK and Netherlands. International lottery revenue was marginally higher, rising 0.3% to €44 million ($51.37 million), while payments and services revenue slipped 1.8% to €16 million ($18.68 million).

For the first nine months of 2025, FDJ’s cumulative revenue reached €2.73 billion ($3.19 billion), down 2.1% from the restated €2.79 billion ($3.26 billion) for the same period last year. Among the group’s four operating segments, only the French lottery and retail sports betting business recorded growth, up 3.1% to €1.89 billion. Lottery revenue rose 4.8% to €1.57 billion ($1.83 billion), while sports betting fell 4.8%.

Online betting and gaming declined 12.9% to €675 million ($788.06 million) due to tax hikes and regulatory tightening, while international lottery revenue fell 11.5% to €124 million ($144.77 million), in part due to the sale of Sporting Group at the end of 2024. Payments and services revenue also contracted slightly, down 1.6% to €47 million ($54.87 million).

Ahead to the fourth quarter, FDJ anticipates a slight revenue decline, particularly in the French lottery and retail sports betting segment, due to what it described as "exceptional events" affecting draw games. Online betting and gaming revenue is expected to remain stable during the period.

To manage profitability under these market conditions, FDJ confirmed it would intensify cost-cutting measures as part of its ongoing 2025–2028 performance plan. “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,” Pallez said.

The group now projects full-year revenue to exceed €3.70 billion ($4.32 billion), slightly below the restated €3.79 billion ($4.42 billion) recorded in 2024. Recurring EBITDA is forecast at approximately €900 million ($1050.75 million), with a recurring margin above 24%.