Tax rises lead to revenue decline for FDJ United
The French gambling giant saw revenue fall by 3 per cent in the third quarter.
France.- FDJ United has reported revenue of €864m for the quarter ending September 30. That’s a drop of 3 per cent from the restated €890m generated in the same period in 2024 including Kindred Group’s operations.
The company stressed that revenue would have held steady were it not for the increased gambling tax in France and other key markets. FDJ estimated the tax burden at €21m, with €18m stemming from changes in Fance, where gambing tax rates rose on July 1 for all verticals. The online betting tax rate rose from 54.9 to 59.3 per cent of gross gaming revenue. FDJ had already forecast that the change would hit its full-year EBITDA by €45m
Chairwoman and CEO Stéphane Pallez said in the results report: “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 July 1”.
FDJ did see modest growth in some areas. Revenue from French lottery and sports betting rose 2.1 per cent to €595m. Without the €14m tax impact on lottery, the segment would have seen a 4.5 per cent year-on-year increase. Lottery revenue alone grew 2.5 per cent to €508m, driven by draw and instant games, while sports betting held steady at €87m despite the absence of a major event like Euro 2024 last year.
On the other hand, online betting and gaming revenue fell by 15.6 per cent to €209m, which was attributed to a €7m tax hit, mainly in France, Romania and the Netherlands,, along with tighter regulatory conditions in the UK and Netherlands. International lottery revenue edged up 0.3 per cent to €44m, while revenue from FDJ’s payments and services business fell by 1.8 per cent to €16m.
For the nine months to September, FDJ’s revenue reached €2.73bn, 2.1 per cent below the restated €2.79bn from the prior year. The French lottery and retail sports betting segment grew 3.1 per cent to €1.89bn, with lottery up 4.8 per cent and sports betting down by the same margin. Online betting and gaming dropped 12.9 per cent to €675m, and international lottery revenue fell 11.5 per cent to €124m, partly due to the sale of Sporting Group. Payments and services revenue declined 1.6 per cent to €47m.
Looking ahead, FDJ anticipates a slight dip in Q4 revenue, citing fewer exceptional draw events in the French lottery and retail sports betting. Online betting and gaming is expected to stabilise. The group forecasts full-year revenue to exceed €3.70bn, slightly below the restated €3.79bn from 2024. Recurring EBITDA is projected at around €900m, with a margin above 24 per cent. The company plans to continue with cost-cutting measures under its Play Forward 2028 plan.
Gambling tax woes spread across Europe
France, The Netherlands and Sweden have all introduced significant rises in gambling tax in the past year, and more such moves are feared. There’s widespread expectation that a UK gambling tax rise will be announced in the autumn budget next month, and Latvia plans an increase in fees and taxes from January 2026.
Meanwhile, Poland is increasing its tax on player winnings and the opposition in Slovakia is pushing for a rise in fees for gaming machines at land-based venues.
In the UK, Entain has warned that it may have to close betting shops as a result of any tax rise, although in Entain’s results call this week, CEO Stella David suggested that less generous bonuses and odds could be other responses. Evoke has already said that it’s considering significant closures of William Hill betting shops
