FDJ United Q3 Revenue Declines 8.1% Amid Higher Taxes and Fewer Big Jackpots

FDJ United, the French gaming and lottery operator formerly known as La Française des Jeux, reported a third-quarter revenue decline of 8.1% to €794 million, as higher taxes, weaker retail foot traffic and a sharp drop in large EuroMillions jackpots cut into results. The company also lowered its full-year financial targets for the third time in 2026.

The Q3 results come as the group, which operates lottery, retail sports betting and online gaming across multiple European markets, faces an additional €70 million in gaming taxes this year. Through September, total gaming tax increases had reached €62 million across the group, according to the company’s earnings statement.

Key facts

Performance across online operations varied sharply by market. Excluding the UK and the Netherlands, where nine-month gross gaming revenue fell 24.4% and 8.6% respectively, online GGR grew 5.7%, supported by France and Scandinavia. However, higher taxes widened the gap between gambling activity and reported revenue. Online GGR slipped just 0.8% to €1.013 billion, while revenue dropped 8.2% to €619 million. Additional taxes cost the online division €34 million.

Fewer large jackpots hit lottery sales

A key factor behind the revenue decline was the reduced frequency of large EuroMillions jackpots. Through September, only 12 draws exceeded €130 million, compared with 27 in the same period of 2025. Just one draw exceeded €200 million, against 12 a year earlier. Draw-game revenue consequently fell 12.2% over nine months and 17.3% in the third quarter alone.

Instant games, by contrast, held up better, recording growth of 0.3% over nine months and 1.1% in Q3. French lottery and retail sports betting revenue fell 4.8% to €1.794 billion over nine months.

Retail sports betting also faced higher payouts. The player payout ratio increased by more than four percentage points to nearly 80%, while weaker economic conditions reduced visits to French points of sale.

Annual outlook cut, dividend target held

FDJ United now forecasts a low-single-digit annual GGR decline and a recurring EBITDA margin of around 23%. In February, the company had expected GGR growth, slightly higher revenue and a 24.5% margin. Cost controls support the latest margin target, the company said.

Despite the downward revisions, FDJ United retained its annual dividend growth target, with a payout ratio of at least 75% of adjusted net profit.

Chairwoman and CEO Stéphane Pallez attributed the performance to “factors inherent to the gaming sector, a decrease in traffic at points of sale against a backdrop of an unfavorable economic climate, as well as the expected increase in taxation.”

The company is also reviewing its online betting and gaming markets alongside non-core assets, particularly payment and services businesses. It aims to introduce a single proprietary sports betting platform across most of its markets by the end of 2027.

What this means for video poker and casino players

While FDJ United’s results are dominated by lottery and sports betting, the broader trends — higher taxes, tighter margins, and operator cost-cutting — have implications for the gaming landscape in Europe. Operators under revenue pressure may adjust promotions, game availability, or market strategy in online casinos where video poker and other table games are offered. Players in FDJ United’s online markets, particularly France and the Netherlands, may see changes in game selection or bonus structures as the company works to recover profitability.

The decline in large jackpot draws also serves as a reminder that lottery-linked games are subject to natural variance in prize frequency, which can directly affect operator revenue and, by extension, the resources allocated to other gaming verticals.

Source: iGaming.org Casino News – https://igaming.org/casino-news/fdj-united-q3-revenue-drops-8-1-to-e794-million/