FDJ prepares strategy to absorb French gambling tax hikes 

French gambling taxes will be increased on July 1.

France.- The French gambling giant Groupe Française des Jeux (Groupe FDJ) says it has begun a multi-year action plan in a bid to absorb the upcoming increase in French gambling taxes. The FDJ will be the company most exposed to the tax hikes since it operates France’s national lottery as well as retail sports betting. 

The increase in French gambling tax will come into force on July 1 under Social Security Funding Act as Prime Minister Michel Barnier aims to raise an extra €500m from gambling. The tax rate on lottery gross gambling revenue will rise from 6.2 to 7.2 per cent while the rate on retail sports betting will rise from 7 to 10 per cent and the rate on online sports betting will rise from 10.5 to 15 per cent. There will also be a 10 per cent tax on online poker and 15 per cent on gaming operators.

FDJ forecasts that the changes will reduce revenue and recurring EBITDA by around €45m this year and €90m from 2026. It estimates that a 1 point increase in lottery taxes will reduce lottery revenue by around 2 per cent and that stakes will be unaffected. To prepare, it says it’s implementing a strategy to absorb the hikes by 2027.

For full-year 2024, FDJ’s revenue was up by 17 per cent to €3.07bn. EBITDA was €792m, a rise of 21 per cent year-on-year, with a margin of 25.8 per cent. That includes the Swedish online gambling group Kindred, which FDJ bought in October.

Excluding Kindred, revenue was up by 10 per cent while on a pro forma basis assuming Kindred had been acquired on January 1, revenue would have been nearly €3.8bn. Gambling tax in Sweden has also been increased.

FDJ will publish its full-year accounts and 2025 guidance on March 6.