FDJ United’s struggles with sports betting continue with its foray into the international side of the industry coinciding with tax raises and regulatory restrictions across multiple markets.

The French company, 50% owned by the state, reported Q3 revenue of €864m, down 3% on corresponding Q3 2024 figures of €890m. Revenue for the nine months ending September 2025 was also down 2.1% to €2.1bn (9M 2024: €2.7bn).

A noticeable contrast can be seen in the performance of FDJ United’s two core products, betting and lotteries, with the latter outpacing the former substantially during the third quarter.

On a segment basis, the group’s online betting and gaming revenue dropped 15.6% year-over-year from €248m to €209m although French lottery and betting revenue were up 2.1% from €582m to €€595m. An increase in gaming tax in France from 54.9% of gross gaming revenue (GGR) to 59.3% on 1 July bit into this, however.

“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,” said Stéphane Pallez, Group Chairwoman and CEO.

“In this context, the Group deepens its transformation and performance plan in 2025, and pursues the operational implementation of its strategy, in line with the growth objectives of its Play Forward 2028 plan.”

Taxation is not the cause of FDJ United’s betting revenue troubles, however, with the impact of this being felt more on profits and EBITDA, to state the obvious. Taxation often accompanies regulatory changes, however, which has proven the real headache for the group from a regulatory perspective.

FDJ United has always offered sports betting in France since its days as Las Frances des Jeux (FDJ), but it substantially stepped up its presence in wagering with the acquisition of Swedish firm Kindred in October 2024.

Acquiring Kindred introduced the firm to markets like the Netherlands and UK via the Unibet sportsbook and 32red online casino. While both mature and lucrative markets, the timing of FDJ United acquiring a brand active in the Netherlands and UK wasn’t entirely ideal, with both undergoing substantial regulatory changes.

In the Netherlands some widespread restrictions on marketing have come into effect since the market was re-launched in 2021, including a ban on sponsorships and sports people in advertising. In the UK, meanwhile, the market is in the process of adapting to the recommendations of a lengthy review into gambling legislation.

Lottery saves FDJ’s Q3

As stated above, FDJ United’s French lottery and retail betting segment performed well in the quarter, albeit with betting revenue feeling the weight of France’s gaming tax changes.

French Lottery revenue remained the dominant growth driver here, with lottery revenues rising 2.5% to €508m driven by returns from raw games and instant games, while revenue from retail wagering was stable before being hit by taxation.

The group’s newly expanded international lottery segment also saw some returns with revenue remaining steady at €44m, growing by a marginal 0.3% – but importantly for the group, not declining.

FDJ paid €350m for Premier Lotteries Ireland (PLI), the long-term operator of the Irish National Lottery, back in 2023. As international sports betting continues to be a struggle, it may find itself leaning on the domestic and lottery operations as a bulwark even more.

Looking ahead, FDJ shared that it is going to expand its already-implemented cost reduction programme to lessen the impact of widespread taxes on its betting and gaming revenues.

The firm expects to close 2025 with revenue of €3.7bn alongside recurring EBITDA of around €900m and a recurring EBITDA margin above 24%.