FDJ United bets on turnaround as taxes and jackpot drought force second outlook cut
Recovery plans in the UK, Netherlands and lottery division have become central to the group’s growth strategy.
Key takeaways:
- FDJ United cut its 2026 outlook for the second time in three months.
- Nine-month revenue fell 5.6 per cent to €2.58bn and GGR declined 2.8 per cent to €6.26bn.
- Higher gaming taxes reduced revenue by €62m and accounted for more than two percentage points of the decline.
- EuroMillions activity weakened significantly, with only one jackpot above €200m compared with 12 a year earlier.
- FDJ United is pursuing recovery plans in the UK and Netherlands while preparing lottery relaunches and platform upgrades through 2027.
FDJ United has downgraded its 2026 expectations again as a combination of higher taxation, weaker lottery activity and continued difficulties in the UK and Dutch online gambling markets weighed on trading. The group’s latest results show that pressures extend beyond short-term market volatility, prompting management to accelerate operational reforms, technology consolidation and product relaunches aimed at restoring growth. Despite the setback, the company maintains that its turnaround initiatives will put the business on a more sustainable footing over the coming years.
France.- FDJ United has cut its 2026 outlook for the second time in three months after reporting weaker trading across the first nine months of the year, with higher taxes, fewer major lottery jackpots and difficult conditions in key markets weighing on performance. The company now expects GGR to decline by a low single-digit percentage in 2026, while profit is forecast to fall by a mid-single digit percentage.
This guidance includes the impact of more than €70m in additional gaming taxes. In July, when publishing its first-half results, FDJ United had anticipated stable GGR and only a low single-digit fall in profit. Management said strict cost controls should help maintain a recurring EBITDA margin of around 23 per cent. The group also reaffirmed its commitment to increase its dividend annually, targeting a payout ratio of at least 75 per cent of adjusted net profit.
The group reported profit of €2.58bn for the nine months to September 30, down 5.6 per cent year-on-year, while gross gaming revenue (GGR) fell 2.8 per cent to €6.26bn. Trading deteriorated further during the third quarter, with profit declining 8.1 per cent to €794m and GGR decreasing 6.1 per cent to €1.95bn. FDJ United said results were affected by a sharp reduction in large lottery jackpots compared with 2025, particularly for EuroMillions, while instant lottery games proved more resilient, with GGR increasing 1.9 per cent.
Retail operations in France were also impacted by lower footfall as consumers faced ongoing economic pressures. Retail sports betting profit fell 4.5 per cent to €297m as customer payouts rose sharply. Online betting and gaming GGR slipped just 0.8 per cent to €1.01bn, but profit declined 8.2 per cent to €619m after €34m in additional taxation.
The company added that gaming tax increases reduced profit by €62m and accounted for more than two percentage points of the overall decline.
Chairwoman and chief executive Stéphane Pallez said performance at the end of September reflected “factors inherent to the gaming sector, a decrease in traffic at points of sale against a backdrop of an unfavourable economic climate, as well as the expected increase in taxation.”
She added: “In this challenging environment, the Group remains fully committed and is resolutely pursuing the implementation of its action and performance plans to swiftly regain a sustainable growth momentum, underpinned by innovation and the attractiveness of its product portfolio.”
A new management team has also been tasked with improving profitability and accelerating growth within the online business. The company is also expanding a single proprietary sportsbook platform across its operations, with the technology expected to be deployed in most markets by the end of 2027. Development teams across Europe are being reorganised to support the initiative.
Alongside its efforts to improve online performance, the company is undertaking a review of its market footprint and non-core assets, particularly within its Payment and Services division. The findings are due to be announced no later than early 2027.
Additional draw-game promotions are planned during the fourth quarter, while both Loto and EuroMillions are scheduled for relaunches in 2027. FDJ United also intends to introduce a new €10 instant-win game next year and enhance its digital lottery offering.
FDJ United is scheduled to publish its full-year 2026 results on February 18 2027.
FAQs
Why did FDJ United lower its 2026 guidance again?
The company cited higher gaming taxes, fewer large EuroMillions jackpots, lower retail footfall in France and difficult trading conditions in the UK and Netherlands. Stronger-than-usual sports betting payouts also affected performance.
How much did taxes impact FDJ United’s results?
Gaming tax increases reduced revenue by €62m during the first nine months of 2026 and represented more than two percentage points of the group’s overall revenue decline. The company expects more than €70m of additional tax impact in its updated guidance.
Why were EuroMillions jackpots important to FDJ United’s performance?
Lottery participation is closely linked to jackpot size. By September, there had been only 12 EuroMillions jackpots above €130m compared with 27 a year earlier, significantly reducing player engagement and draw-game revenue.
What is FDJ United doing to improve performance?
The group is implementing recovery plans in the UK and Netherlands, rolling out a proprietary sportsbook platform, reviewing non-core assets, reorganising development teams and preparing relaunches of Loto and EuroMillions alongside new lottery products in 2027.
