French lottery and gaming leader FDJ United reported a 3% decline in overall revenue to €3.68 billion for 2025, primarily due to sweeping tax hikes imposed by the French government.
Despite the dip, the group, which recently completed its acquisition of Kindred, saw underlying Gross Gaming Revenue (GGR) edge up 1% to €8.71 billion.
Navigating a Tax-Heavy Environment
The group is currently absorbing over €50 million in additional gaming taxes, a burden expected to nearly double to €90 million by 2026. Despite these headwinds, core earnings held firm at €902 million, with the group successfully converting over 85% of its earnings into cash.
Stéphane Pallez, FDJ Chair and CEO, commented on the results:
“In 2025, FDJ United demonstrated the strength of its model and continued its transformation, in an environment affected by tax increases and tighter regulations on gaming. The group will continue to improve its operational efficiency to return to its profitable and sustainable growth path by 2026.”
Restructuring and Future Targets
As part of its integration of Kindred, FDJ is shaking up its online division, a process marked by the exit of former Kindred CEO Nils Andén. FDJ group is targeting 5% revenue growth by 2028, supported by a performance plan aimed at achieving over €150 million in savings by the same period.
Online revenue for 2025 declined 8.1%, impacted by Dutch regulatory tightening and unfavorable comparisons to the previous year. However, FDJ remains a cornerstone of the French economy, contributing €5.1 billion to public finances and supporting over 57,000 jobs last year.
