FDJ reveals financial growth and CSR strategy for 2028

As part of its recent Capital Markets Day, La Française des Jeux (FDJ), the French national lottery operator, unveiled a comprehensive set of long-term financial objectives and non-financial commitments that define its corporate vision through to 2028. The strategy—branded Play Forward 2028—emphasizes both organic revenue growth and a deeper investment in corporate social responsibility (CSR), alongside ambitions to strengthen its footprint in the European gaming and betting sector.

Strategic financial planning: growth with stability

FDJ’s management reaffirmed its short-term financial expectations for 2025, projecting stability in comparison with 2024’s pro forma financial performance. The company expects its recurring EBITDA margin to exceed 24% in 2025, with an ambitious target of increasing that margin to 26% by 2028.

Additionally, FDJ forecasts an annual organic revenue growth rate of 5% throughout the forecast period. These figures are grounded in recent performance metrics, which show that between 2019 and 2024, the operator’s revenues grew by 80%, reaching €3.8 billion ($4.4 billion) by the end of 2024. This steady expansion underscores the resilience and scalability of FDJ’s operating model.

CEO Stéphane Pallez outlines long-term transformation

FDJ United Chair and CEO Stéphane Pallez positioned the updated financial strategy as a natural extension of the company’s ongoing transformation since its 2019 initial public offering (IPO).

“FDJ United has undergone a considerable transformation since its IPO, with financial and non-financial performance underscoring the success of our strategy for sustainable, profitable growth,” said Pallez. “2025 is a pivotal year for the Group, with the consolidation of Kindred, the benefits of which are reflected in our Play Forward 2028 strategic plan.”

Pallez emphasized that the roadmap to 2028 focuses not only on operational growth, but also on promoting FDJ’s role as a responsible gaming operator. She stated that the company seeks to become “Europe’s leading responsible betting and gaming operator,” supported by a portfolio that is “more diversified, more digital and more international.”

The Kindred acquisition: a milestone for international expansion

A major driver of FDJ’s future strategy is the recent acquisition of Kindred Group plc, a prominent European gambling operator known for brands such as Unibet. The transaction was finalized in Q4 2024, with FDJ acquiring a 90.6% stake in Kindred for a sum of €2.5 billion—not €2.5 million as was incorrectly stated in some reporting. This move significantly expands FDJ’s reach beyond the French market, providing access to multiple regulated online gambling jurisdictions across Europe.

The Kindred acquisition is expected to be integrated into FDJ’s wider operational structure during 2025, with benefits materializing in the form of economies of scale, enhanced product offerings, and access to new digital infrastructures and customer segments.

Responsible gaming and risk mitigation

In line with growing regulatory scrutiny across Europe, FDJ has committed to reducing its reliance on revenues derived from so-called “high-risk” players—though the company has not disclosed specific financial targets or timelines associated with this reduction. High-risk gambling behaviors often trigger regulatory penalties and reputational risks, and FDJ’s pledge to reduce such revenues is in line with its aim to distinguish itself as a socially responsible operator.

Through its Play Forward 2028 framework, FDJ is expected to implement stricter monitoring mechanisms and player protection tools designed to mitigate gambling-related harms. These may include enhanced self-exclusion protocols, AI-based behavior tracking systems, and collaborations with healthcare and addiction prevention organizations.

Increased social and environmental contributions

Another major pillar of FDJ’s long-term strategy is the ramping up of its contributions to social and environmental causes. While 2024 saw FDJ allocate approximately 2.7% of its annual profits to CSR-related initiatives, this figure is projected to grow to 5% by 2030.

This doubling of CSR expenditure reflects a growing emphasis among publicly listed gambling companies to align with environmental, social, and governance (ESG) standards, particularly in light of investor and regulatory expectations. FDJ has indicated that these contributions will support programs in the following areas:

• Prevention of gambling addiction and public health partnerships
• Environmental sustainability initiatives in line with EU Green Deal objectives
• Community development and support for non-profit organizations
• Youth education and digital literacy programs
• Workplace diversity and employee wellbeing

Digitalization and product diversification

Looking toward 2028, FDJ aims to evolve its core offering by embracing new technologies and diversifying its product lineup. Historically reliant on traditional lottery sales, the company has made significant investments in digital transformation, including mobile applications, online betting platforms, and gamified engagement tools.

The integration of Kindred’s digital platforms is expected to accelerate this transition, giving FDJ access to well-established iGaming infrastructures and customer data analytics capabilities. These assets will be crucial for tailoring offerings to a more digitally native audience, particularly in countries where online gambling markets are rapidly expanding.

Challenges and regulatory landscape

Despite these ambitions, FDJ operates in a regulatory environment that is becoming increasingly complex. European gambling regulators have, in recent years, introduced more restrictive advertising laws, higher taxation models, and stricter KYC (Know Your Customer) requirements.

FDJ must also navigate potential scrutiny arising from its majority ownership by the French state, which may provoke concerns around competition and fairness from other market players. Nevertheless, acquiring Kindred could help alleviate these concerns by broadening FDJ’s international presence and lessening its reliance on the French domestic market.

Furthermore, the company’s clear commitment to transparency, ESG compliance, and responsible gambling policies could serve as buffers against reputational and regulatory risks in the medium to long term.

Stakeholder value and investor confidence

FDJ’s management remains confident that the outlined financial and CSR goals will drive long-term shareholder value. The company aims to position itself not only as a profitable business but as a socially responsible organization that operates ethically in a controversial industry.

The announcement of the Play Forward 2028 plan appears to have been positively received by institutional investors, with several financial analysts citing the integration of Kindred and expanded CSR funding as positive signals for sustainable growth.

Conclusion

FDJ’s updated strategic roadmap, as presented during its Capital Markets Day, reflects a mature and forward-looking approach to business development in the gambling industry. With its eyes firmly set on organic growth, operational efficiency, and social responsibility, the company is aiming to redefine its identity as a modern, ethical gaming operator.

By balancing shareholder interests with public accountability, FDJ may be poised to serve as a model for other gambling companies navigating similar regulatory and reputational challenges across Europe and beyond.

FAQs

What is FDJ’s main goal in the Play Forward 2028 strategy?
FDJ aims to strengthen its position as Europe’s leading responsible betting and gaming operator through diversification, digital expansion, and CSR investments.

How much does FDJ plan to grow its annual revenue by 2028?
FDJ forecasts an annual organic revenue growth rate of 5% through 2028.

What is the targeted EBITDA margin FDJ expects by 2028?
The company expects to increase its recurring EBITDA margin to 26% by 2028.

How has FDJ’s revenue changed between 2019 and 2024?
FDJ’s revenue nearly doubled during that period, reaching €3.8 billion in 2024 with a consistent growth rate above 5%.

What role does Kindred play in FDJ’s future strategy?
The acquisition of Kindred is a key element of FDJ’s international expansion and digital transformation efforts.

How much did FDJ pay to acquire Kindred?
FDJ acquired a 90.6% stake in Kindred for approximately €2.5 billion in Q4 2024.

What are FDJ’s CSR spending goals for 2030?
FDJ plans to increase its CSR-related contributions to 5% of its profits by 2030, up from 2.7% in 2024.

What are high-risk players, and how is FDJ addressing them?
High-risk players are individuals prone to gambling harm. FDJ is implementing measures to reduce its revenue dependence on this segment.

How does FDJ plan to diversify its business model?
Through digital transformation, new product development, and international acquisitions like Kindred, FDJ aims to expand beyond traditional lottery operations.

Is FDJ still majority-owned by the French government?
Yes, the French state retains a significant share in FDJ, which operates under a partially privatized model since its IPO.