FDJ United has reported a dip in both revenue and gross gaming revenue (GGR) for the first half of 2026, primarily due to increased taxes and underperformance in its lottery segment. The company’s results, unveiled on Wednesday, showed a 4.5% decline in revenue, down to €1.78 billion, while GGR slid 1.3% to €4.31 billion. Stéphane Pallez, FDJ’s CEO and chairwoman, attributed the declines to tax hikes in key markets such as France, Romania, the UK, and the Netherlands. She noted that gaming tax increases slashed around €52 million from the company’s H1 revenue. The lottery sector, particularly hit, saw a 2.1% GGR drop to €2.98 billion, with revenue falling 4% to €1.02 billion. The company’s earnings release pointed to fewer and smaller Euromillions jackpots compared to last year and reduced foot traffic at retail locations, partly due to heatwaves.
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Pressure on Retail and Lottery Performance
FDJ’s retail sports betting wasn’t spared, suffering a 1.1% dip in GGR to €450 million, and a 2.9% fall in revenue to €218 million. Despite these hurdles, Pallez expressed optimism about the future, stating, “Backed by solid fundamentals and a strong financial structure, FDJ United continues to invest in innovation, the attractiveness of its product portfolio and the acceleration of its transformation in order to return to a path of sustainable, profitable and value-creating growth.” Still, the lottery’s struggle was evident — a key concern, given its historical role as a revenue pillar.
Online Sector Steady Amid Challenges
The online unit fared slightly better, performing “in line with expectations” according to the company. GGR for online gaming and betting held steady at €702 million, although revenue saw a 7.4% decline to €431 million. Growth was led by France and Scandinavia, with these regions offsetting struggles elsewhere. Specifically, excluding the Netherlands and the UK, the online unit’s GGR rose 6.6%, and revenue nudged up 0.6%. Meanwhile, improvements in the Unibet brand’s performance in the Netherlands contrasted with continuing difficulties in the UK. The brand’s GGR saw a 4.1% decline in Q2, an improvement on Q1’s 15% drop. However, the UK market remains tough, with FDJ stating the “situation remains difficult.”
Strategic Adjustments and Market Context
In light of these results, FDJ hinted at revisiting its Kindred business’s market portfolio — a move that could signal strategic changes in the UK, despite earlier comments from gaming and betting chief Pascal Chaffard about maintaining a presence there. Pallez, on an investor call, emphasized a focus on investing in markets offering good ROI, clarifying there’s no imminent decision to exit any markets. The overall H1 performance prompted FDJ to adjust its full-year guidance, expecting stable GGR across its units rather than growth. Revenue is now anticipated to decline slightly for FY2026. The adjusted net profit stood at €180 million, with an emphasis on optimizing resource allocation going forward. The company plans to implement “targeted task forces” to bolster collaboration and enhance performance in both the UK and the Netherlands. The next phase for FDJ involves a strategic review and potential shifts in its investment approach, especially in markets showing a promise for profitable returns. But the industry’s attention will likely focus on any upcoming decisions at FDJ’s annual review.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
