FDJ United has lowered its 2026 targets after third-quarter revenue fell 8.1% to €794 million ($889.3 million), compared with €864 million ($967.7 million) a year earlier. The French group cited fewer large lottery jackpots, higher sports betting payouts, lower point-of-sale traffic and tax increases.
For the nine months, the operator of France’s national lottery and the Unibet brand reported revenue of €2.57 million ($2.89 billion), down 5.6%.
Gross gaming revenue (GGR), or stakes minus player winnings, dropped 2.8% to €6.26 million ($7.02 billion). Gaming tax increases cut revenue by €62 million ($69.4 million), or more than 2 percentage points.
Forecast trimmed since February
FDJ United now expects a low-single-digit decrease in GGR and a mid-single-digit decline in revenue for 2026, which includes an impact of more than €70 million ($78.4 million) from additional taxation.
In July, the company had projected a low-single-digit revenue decline. The recurring EBITDA margin target narrowed to around 23% from 23% to 24% at the half-year stage.
In February, the group had anticipated slight revenue growth and a 24.5% margin, and Chairwoman and CEO Stéphane Pallez spoke of plans “to return to its profitable and sustainable growth path by 2026.”
The group also confirmed its target of an annual dividend increase, with a payout ratio of at least 75% of adjusted net profit.
“FDJ UNITED’s performance at the end of September reflects 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,” said Pallez.
“In this challenging environment, the group remains fully committed and is resolutely pursuing the implementation of its action and performance plans to swiftly regain a sustainable growth momentum, underpinned by innovation and the attractiveness of its product portfolio,” she added.
Jackpot shortfall weighs on draw games
In the French lottery and retail sports betting business unit, GGR fell 3.5% to €4.97 million ($5.58 billion), and revenue declined 4.8% to €1.79 million ($2.01 billion) after €28 million ($31.4 million) in additional taxation.
Lottery GGR declined 3.5% to €4.36 million ($4.89 billion), a drop limited to 0.9% excluding EuroMillions long cycles. Revenue fell 4.8% to €1.49 million ($1.68 billion).
Draw game GGR fell 10.3%, and revenue dropped 12.2% to €563 million ($630.6 million), including a 17.3% third-quarter decline.
Through September, EuroMillions produced 12 jackpots above €130 million ($145.6 million), compared with 27 a year earlier, and one above €200 million ($224 million), against 12.
Stakes are highly sensitive to jackpot size, and the French trend matched the average of all ten participating European lotteries.
Instant games recorded GGR growth of 1.9% and a 0.3% revenue increase to €935 million ($1.05 billion), despite lower footfall from economic conditions in France and summer heatwaves. Since instant games carry a higher player payout ratio, the contrasting trends raised the average lottery payout ratio and weighed on revenue, particularly in Q3.
Point-of-sale sports betting GGR declined 3.2% to €613 million ($686.6 million), and revenue fell 4.5% to €297 million ($332.6 million). The player payout ratio rose by more than 400 basis points to nearly 80%.
Tax hikes weigh on the online unit
The online betting and gaming unit reported nearly stable GGR of €1 billion ($1.13 billion), down 0.8%. After €34 million ($38.1 million) in additional taxation, revenue decreased 8.2% to €619 million ($693.3 million), with a 10.2% decline in the third quarter.
GGR fell 24.4% in the UK, which raised its online casino tax from 21% to 40% in April, and 8.6% in the Netherlands, where the gambling tax rose to 37.8% in January.
Excluding both markets, GGR grew 5.7%, and revenue rose 0.8% on performance in France and Scandinavia.
FDJ United, which acquired Unibet owner Kindred in 2024, merged its French platforms in the first half and made Unibet its sole brand for sports betting and online poker in France.
The group is accelerating the rollout of a single proprietary sports betting platform that aims to cover most of its markets by the end of 2027.
In July, its venture arm joined a $35 million funding round for US prediction-market operator ProphetX with an undisclosed investment.
Review of non-core assets
International lottery revenue fell 4.7% to €118 million ($132.2 million) after the termination of certain unprofitable B2B contracts, while Premier Lotteries Ireland grew revenue 2.1%.
Payment and Services revenue slipped to €44 million ($49.3 million) from €47 million ($52.6 million). The group is reviewing its online markets and non-core assets, particularly in that unit, with conclusions due by early 2027.
FDJ United plans additional draw game events in the fourth quarter. In 2027, it will relaunch EuroMillions and Loto and introduce a new €10 instant game.