FDJ United has reported a 3% year-on-year fall in restated Q3 revenue to €864m (£750m), with the operator blaming rising gambling taxes in France and other key markets for eroding growth.
The “restated” figure assumes Kindred Group had been part of FDJ’s portfolio in 2024, reflecting underlying performance excluding acquisition effects.
CEO Stéphane Pallez said the results “reflect the impact of higher taxation on gaming, particularly in France”, where new levies added €18m in Q3 tax costs – part of a €21m Europe-wide hit.
French online betting tax climbed from 54.9% to 59.3% of GGR, while lottery and igaming were also subject to increases, with FDJ warning of a €45m EBITDA drag for 2025.
FDJ’s online betting and gaming revenue fell 15.6% to €209m, reflecting tighter rules in the UK and Netherlands alongside higher French taxation.
Despite the pressure, total revenue still rose 2.1% in FDJ’s French lottery and sports betting arm to €595m, driven by draw games and instant lotteries.
Prolonged decrease
During the earnings call, Pallez said: “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.”
Pallez confirmed FDJ would “deepen its transformation and performance plan in 2025” as part of the ‘Play Forward 2028’ strategy, aiming to counter fiscal headwinds through efficiency and digital growth.
The warning comes amid similar challenges across Europe, with Dutch GGR falling 16% in H1 2025 following a tax rise from 30.5% to 34.2% and tighter compliance rules including new deposit limits.
Responding to the Dutch figures, Regulus Partners said: “Policy makers cannot have their cake and eat it – tighten regulation and increase taxes and get lower tax yields and regulatory avoidance.”
FDJ now expects full-year 2025 revenue to exceed €3.7bn, with recurring EBITDA of approximately €900m and a margin above 24%.
The post FDJ United blames Q3 revenue fall on French tax rises first appeared on EGR Intel.
Kindred owner suffers €21m Europe-wide hit as higher taxes and other regulation begin to bite
The post FDJ United blames Q3 revenue fall on French tax rises first appeared on EGR Intel.