FDJ United lowers its 2026 outlook as gaming taxes weigh on revenue growth

FDJ United has revised its full-year 2026 financial outlook following a decline in revenue and gross gaming revenue (GGR) during the first nine months of the year. Higher gaming taxes, reduced activity across certain lottery products and weaker performance in selected betting markets contributed to the deterioration in its reported results.

For the nine months ended September 30, 2026, the group generated revenue of €2.576 billion, representing a 5.6% decrease compared with €2.730 billion during the corresponding period in 2025. Gross gaming revenue reached €6.264 billion, down 2.8% year on year.

The third-quarter figures showed a more pronounced decline. Revenue fell 8.1% to €794 million, while GGR decreased 6.1% to €1.950 billion. These results reflect a combination of operating conditions, changes in taxation and fluctuations in customer activity across the company's business segments.

FDJ United identified €62 million in higher gaming taxes across the group as one of the factors affecting its performance. The company also stated that tax increases accounted for more than two percentage points of the overall nine-month revenue decline. This figure relates to additional gaming taxes rather than a corporate income tax charge.

Full-year guidance reflects increased financial pressure

Following the latest results, FDJ United adjusted its expectations for the 2026 financial year. The group now anticipates a low-single-digit percentage decline in gross gaming revenue and a mid-single-digit percentage decrease in revenue.

Despite the weaker trading environment, management expects to maintain a recurring EBITDA margin of approximately 23%. The target indicates that cost control remains an important part of the group's response to lower revenue and increased operating pressures.

The company also expects the impact of additional gaming taxation to exceed €70 million for the full year. This anticipated burden adds to the challenges facing its French lottery operations and its online betting and gaming business.

FDJ United has separately maintained its objective of increasing its annual dividend, based on a payout ratio of at least 75% of adjusted net profit. The final distribution will depend on the relevant financial results and applicable corporate approval procedures.

French lottery activity remains under pressure

The French lottery and retail sports-betting division recorded GGR of €4.978 billion during the first nine months, down 3.5% year on year. Revenue from the segment decreased 4.8% to €1.794 billion, with €28 million in additional taxation contributing to the reported pressure.

Lottery GGR declined 3.5% to €4.365 billion. However, performance differed considerably between draw-based products and instant games. Draw-game GGR fell 10.3%, while instant-game GGR increased 1.9%.

The difference was particularly evident in the performance of EuroMillions. By the end of September 2026, the game had recorded 12 jackpots exceeding €130 million, compared with 27 during the same period in 2025. Only one jackpot exceeded €200 million, whereas 12 had crossed that threshold during the corresponding period a year earlier.

The lower frequency of substantial jackpots affected draw-game activity, according to the company's results statement. FDJ United noted that the relationship between jackpot amounts and player participation contributed to the decline.

Instant games offered a more resilient performance, although the increase in GGR was not sufficient to offset the decline in draw-based products. The contrasting trends also affected the average lottery player-payout ratio, which weighed on revenue.

Retail sports betting also experienced a difficult period. GGR declined 3.2% to €613 million, while revenue decreased 4.5% to €297 million. Higher player winnings, particularly during the third quarter, contributed to the result. The player-payout ratio increased by more than 400 basis points to nearly 80%.

The company also cited challenging economic conditions in France and lower traffic at physical retail locations during the second and third quarters.

Online betting and gaming show mixed regional performance

FDJ United's online betting and gaming division recorded GGR of €1.013 billion, representing a comparatively modest decline of 0.8%. Revenue, however, fell 8.2% to €619 million following €34 million in additional gaming taxation.

Regional differences remained significant. GGR declined 24.4% in the United Kingdom and 8.6% in the Netherlands, according to the company's reported figures. These markets continued to weigh on the segment's overall performance.

By contrast, markets outside the United Kingdom and the Netherlands recorded 5.7% growth in GGR. Revenue across those other markets increased 0.8%, supported by performance in France and Scandinavia.

FDJ United said management initiatives were being implemented in the weaker markets to improve results gradually. The measures form part of a wider effort to strengthen customer retention, improve the player experience and allocate marketing expenditure more effectively.

Recovery plans extend into 2027

FDJ United is pursuing operational changes intended to support its recovery and improve the efficiency of its technology infrastructure. One of the principal initiatives is the accelerated rollout of a single proprietary sports-betting platform, combining technologies already used across its operations.

The company aims to deploy the platform across most of its markets by the end of 2027. Development teams in Europe are also being refocused as part of the implementation process.

Lottery products remain another priority. Additional draw-game events are planned for the fourth quarter of 2026, followed by the planned relaunch of EuroMillions and Loto in 2027. The company also intends to introduce a new €10 instant game and continue developing its digital offering, including web-exclusive games.

These initiatives are designed to refresh the product portfolio and support customer engagement. Their eventual contribution to revenue will depend on customer demand, market conditions and the group's ability to implement the planned changes.

FDJ United is also reviewing markets within its online betting and gaming division and assessing non-core assets, particularly those associated with its Payment and Services business. The group expects to communicate the conclusions of this review by early 2027 at the latest.

Market position and the next financial update

FDJ United operates across lottery, retail sports betting and online gaming activities in regulated European markets. The company's business model combines activities carried out under exclusive rights with products offered in competitive markets.

The group remains subject to the French regulatory framework overseen by the Autorité Nationale des Jeux (ANJ) for the relevant gambling activities. Its shares are traded on Euronext Paris, where investors can follow its financial disclosures and company announcements.

The next major reporting milestone is scheduled for February 18, 2027, when FDJ United intends to publish its full-year 2026 results before the market opens. That release should provide further detail on revenue performance, profitability, taxation and progress with the group's recovery measures.

Conclusion

FDJ United's nine-month results highlight the combined effect of higher gaming taxes, less favourable lottery jackpot patterns and regional differences in betting activity. The 5.6% decline in revenue and the steeper reduction recorded during the third quarter have prompted management to adopt a more cautious outlook for the full year.

The group is seeking to address these pressures through tighter cost management, product development and the consolidation of its sports-betting technology. Planned lottery launches and the review of selected markets and non-core assets will also form part of its efforts to improve operational performance.

Maintaining a recurring EBITDA margin of around 23% while revenue declines will be an important financial objective. However, the effectiveness of the group's measures will become clearer as implementation progresses through 2027.

The February 2027 results announcement will therefore be a significant point of assessment for shareholders and market observers. Revenue trends, margin performance and progress on the planned initiatives will help determine whether FDJ United can stabilise its operations and establish a more sustainable growth trajectory.

FAQs

Why did FDJ United lower its 2026 outlook?
FDJ United cited higher gaming taxes, fewer large lottery jackpots, weaker retail traffic in France and elevated player winnings in sports betting as factors affecting its performance.

How much revenue did FDJ United generate in the first nine months of 2026?
The company reported revenue of €2.576 billion for the nine months ended September 30, 2026, down 5.6% compared with the same period in 2025.

What was FDJ United's gross gaming revenue during the period?
Gross gaming revenue reached €6.264 billion, representing a year-on-year decrease of 2.8%.

How much did additional gaming taxes affect the results?
The company identified €62 million in higher gaming taxes during the first nine months and said tax increases accounted for more than two percentage points of the revenue decline.

What is FDJ United's revised revenue outlook for 2026?
The group expects a mid-single-digit percentage decline in revenue and a low-single-digit percentage decrease in gross gaming revenue for the full year.

How did the French lottery business perform?
French lottery GGR decreased 3.5% to €4.365 billion. Draw-game GGR fell 10.3%, while instant-game GGR increased 1.9%.

Why did EuroMillions activity affect the results?
There were fewer large jackpots during the first nine months of 2026 than in the corresponding period of 2025. The company identified this difference as a factor weighing on draw-game activity.

How did retail sports betting perform?
Retail sports-betting GGR declined 3.2% to €613 million and revenue fell 4.5% to €297 million. Higher player winnings contributed to the weaker performance.

What is happening in online betting and gaming?
The division recorded GGR of €1.013 billion, down 0.8%, while revenue fell 8.2% to €619 million. Performance was weaker in the United Kingdom and the Netherlands, while other markets recorded GGR growth.

When will FDJ United publish its full-year 2026 results?
The company has scheduled the release of its full-year 2026 results for February 18, 2027, before the market opens.