Regulatory Changes in UK & NL Hit FDJ United Revenue

FDJ United, formerly known as La Française des Jeux (FDJ), has reported robust financial performance in the first quarter of 2025, buoyed by strong growth in online lottery operations. However, the group also highlighted significant headwinds in its sports betting and gaming segment due to tightening regulations in key markets such as the United Kingdom and the Netherlands.

Transition to FDJ United marks strategic shift

The first-quarter report comes on the heels of FDJ’s transformation into FDJ United following its acquisition and integration of the Kindred Group. This rebranding signals a broader ambition to unify the company’s global operations and accelerate its digital and international strategy. The shift underscores FDJ United’s intent to diversify beyond France, establishing a strong footprint in regulated markets across Europe and beyond.

Chairwoman and CEO Stéphane Pallez expressed optimism despite the challenges, stating that “FDJ United's performance in the first quarter is in line with the trajectory planned for 2025.” She emphasized that the company is “fully committed to the transformation associated with the implementation of its international and digital strategy.”

Revenue up 30 percent year-on-year

FDJ United reported total revenue of €925 million in Q1 2025, representing a 30 percent year-on-year increase on a reported basis. This impressive growth was driven primarily by strong performances in the lottery segment and modest but consistent gains in other European markets outside of the UK and the Netherlands.

The company’s online lottery segment stood out with a 14 percent year-on-year growth, reaching €79 million. This was attributed to a sharp increase in the number of online players, which surged to 5.8 million over the past 12 months. Online now contributes 15 percent of the group’s total lottery revenue.

Sports betting and gaming face pressure from regulation

In contrast to the buoyant lottery sector, FDJ United’s online sports betting and gaming segment was impacted negatively by stricter regulatory frameworks in the UK and the Netherlands. While revenue excluding these two markets rose nearly 8 percent, including them saw revenue fall by 10 percent to €231 million.

This decline underlines the growing regulatory risk operators face in some of Europe’s more mature gambling markets. For FDJ United, the UK and the Netherlands presented unique but overlapping challenges in Q1.

Netherlands regulatory changes significantly impact revenue

In the Netherlands, FDJ United experienced a dramatic 41 percent drop in revenue. The company cited the implementation of new deposit restrictions in October 2024 as a key factor behind the significant revenue drop, noting that these limits have “substantially constrained” players’ monthly deposit activity. On top of this, an increase in the gambling tax rate from 30.5 percent to 34.2 percent further tightened profit margins for operators.

Moreover, the gross margin on sports betting fell by more than 100 basis points due to what the company described as “unfavourable” sports outcomes. These compounded effects have drastically reduced profitability and put FDJ United and other licensed operators under stress.

The company also highlighted a sharp decline in the channelling rate—the proportion of players using legal and regulated operators. FDJ United reported that this rate had dropped below 50 percent by early 2024, raising concerns that players may be turning to unregulated platforms that are not subject to the same consumer protection or taxation requirements.

UK white paper reforms dampen performance

The UK market, another major pillar in FDJ United’s portfolio, saw a 27 percent decline in revenue in Q1. This downturn was largely the result of new regulatory measures implemented following the UK government’s white paper on gambling reform.

Although specific measures from the white paper were not detailed in the earnings report, previously proposed changes included stricter affordability checks, mandatory limits on online slot stakes, and increased operator accountability. These reforms have had a cooling effect on consumer activity and operator profitability.

Despite this, FDJ United reported some resilience in its UK operations. The number of active players in its online betting segment increased five percent compared with the previous quarter and rose nearly 10 percent year-on-year, suggesting that user engagement remains relatively robust.

France continues to provide stable growth

While the UK and Netherlands posed challenges, FDJ United found stable ground in its home market of France. French operations saw a modest yet steady increase in both lottery and sports betting revenues.

Retail and point-of-sale sports betting revenue grew by four percent to €640 million, with total stakes rising six percent. Within this, point-of-sale revenue reached €561 million, up two percent year-on-year. This growth was attributed to heightened interest in UEFA club competitions such as the Champions League, Europa League, and Europa Conference League, whose revised formats have engaged a broader audience.

Lottery revenue in France also posted strong figures, growing five percent to €528 million. A key driver behind this performance was the unusually high number of large Euromillions jackpots in Q1. There were 11 jackpots exceeding €75 million, of which seven surpassed €130 million—an all-time record for a first quarter. These substantial prizes spurred increased participation, particularly in the digital space.

Momentum in digital transformation and international strategy

FDJ United’s long-term vision includes a greater focus on digital expansion and international presence. The Q1 report highlighted ongoing momentum in these areas. Across all markets, the number of active online players has increased, reflecting both the shift in consumer behaviour and the company’s successful marketing and platform development efforts.

The integration of Kindred Group has not only enhanced FDJ United’s digital capabilities but also expanded its reach into new markets. The company is expected to continue leveraging this merger to consolidate its position among Europe’s leading gaming and betting operators.

Outlook for the rest of 2025

Looking ahead, FDJ United aims to mitigate the effects of adverse regulation through innovation, geographic diversification, and strategic investments. The company also plans to engage proactively with regulators in its key markets to advocate for a more balanced regulatory approach that protects consumers while enabling licensed operators to thrive.

While the regulatory landscape remains complex, especially in jurisdictions with rising tax burdens and restrictive consumer protection measures, FDJ United remains confident in its ability to deliver on its strategic roadmap for 2025 and beyond.

Conclusion

FDJ United’s first-quarter performance in 2025 underscores a tale of two realities: robust growth in its lottery and core French operations, contrasted with mounting regulatory pressures in key international markets. While total revenue surged by 30 percent year-on-year, this was tempered by notable declines in the UK and the Netherlands—markets where newly imposed rules and tax increases significantly eroded sports betting and gaming margins.

Despite these headwinds, FDJ United’s strategic transformation—driven by its digital evolution and international ambitions—continues to gain traction. The integration of the Kindred Group has enhanced the company’s technological and geographic reach, allowing it to navigate increasingly complex regulatory landscapes. Moreover, a record number of high-value lottery jackpots and sustained player growth online indicate strong consumer demand across its offerings.

As the company advances through 2025, its success will hinge on its ability to adapt to regulatory change, deepen engagement with its growing online user base, and leverage its expanded international platform. With a clear roadmap and resilient core operations, FDJ United remains well-positioned to consolidate its standing as a leading player in the European gaming and betting industry.

FAQs

What is FDJ United?
FDJ United is the new name of the French gaming operator formerly known as La Française des Jeux, following its integration of the Kindred Group.

How much revenue did FDJ United generate in Q1 2025?
The company reported €925 million in revenue, a 30 percent increase year-on-year.

What caused the revenue decline in the Netherlands?
Regulatory changes including deposit limits and increased gambling taxes, along with unfavourable sports results, led to a 41 percent revenue drop.

Why did revenue decline in the UK?
New regulations introduced as part of the UK’s gambling reform white paper negatively affected FDJ United’s performance.

What segments performed well for FDJ United?
The online lottery and French retail segments performed strongly, with lottery revenue up five percent and retail betting revenue up four percent.

How many players now use FDJ United's online lottery services?
The company reported 5.8 million active online lottery players as of Q1 2025.

How is FDJ United handling regulatory challenges?
The company is engaging with regulators and focusing on digital innovation and international expansion to offset challenges.

What role did the UEFA tournaments play in FDJ United’s growth?
Increased stakes on UEFA competitions contributed to growth in the French sports betting segment.

What impact did the Euromillions jackpots have?
A record number of high-value jackpots boosted lottery participation, particularly online.

What is the outlook for FDJ United in 2025?
Despite regulatory challenges, the company remains confident in its growth trajectory and digital transformation strategy.