FDJ United reported a slowdown in momentum toward the end of Q1 2026, as rising taxes offset underlying growth in gaming activity.
Gross gaming revenue (GGR) for the three months to 31 March rose 1% year-on-year to €2.18 billion. However, overall gaming revenue declined 3% to €895 million, largely due to around €24 million in additional gaming taxes affecting both retail and online segments.
Lottery and retail sports betting revenue dropped 2% to €627 million in France, partly impacted by €15 million due to tax increases. The lottery had mixed performance with: instant games up 1.1% to €320 million; while draw games down 6.2% to €199 million due to only one big jackpot cycle occurring versus the €250 mill EuroMillions draw that took place this time last year. Digital lottery sales also increased slightly by 1.4%% to €81 million.
Retail betting and sports gaming revenue also suffered declines of an equivalent amount with total revenues dropping 1.8% or 3.6% after adding on the additional €2 million of tax liabilities incurred over the course of fiscal Q1. Betting at po-S locations fell by another 1.8% or up to €546 million when compared with income generated through the same period of time in prior years.
Online betting and gaming revenues showed a significant decline of 8% to €213 million as a result of the prior year increase of €9 million in taxes that went into effect. The group pointed out tax changes occurring throughout many different jurisdictions including France, Netherlands and Romania. In addition, the new UK tax structure did not become effective until fiscal Q2 had occurred.
UK Total Q1 revenues were reported down 24.1% from the prior year while those in Netherlands were down 19.9% versus an even greater decrease experienced back in 2015. Excluding the two large markets discussed above, total revenues experienced little if any variance year-over-year with both France & Sweden demand up slightly (1%).
FDJ described a 3% increase in active players in the United Kingdom attributed to their ongoing efforts to acquire users as well as promote responsible gambling practices such as providing transparency regarding problem gambling resources. International Lottery revenues also demonstrated a growth of 7% versus last year to €41 million; whereas payments & services division faced a decline of 7.2% versus previous year to €14 Million.
Despite the softer revenue performance, Chairwoman and CEO Stéphane Pallez struck an optimistic tone:
In an environment still affected by the impact of tax increases and tighter regulations on gaming, the group is stepping up its efforts in operational efficiency, synergies, and financial discipline, with the aim of returning to sustainable, value-creating growth from the second half of the year onwards, for the benefit of all its stakeholders.
FDJ United expects a slight increase in full-year GGR but a small decline in revenue, with additional tax impacts of nearly €90 million anticipated.
Separately, the company announced the appointment of Dan Lévy as chief financial officer, effective 18 May. He will replace Pascal Chaffard, who will transition into new strategic roles within the group.
