FDJ United, the French gambling operator, has announced a downturn in both profit and gross gaming revenue (GGR) for the first half of 2026, blaming increased taxes and a weak lottery performance. The company, which initially anticipated slight growth, now expects stable GGR for the year, with profits projected to decline marginally.
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Tax Increases Pressure Earnings
Earnings fell 4.5% year-on-year to €1.78 billion, following a 1.3% drop in GGR to €4.31 billion. Stéphane Pallez, FDJ’s Chairwoman and CEO, attributed the financial squeeze to gaming tax hikes across several countries, including France, Romania, the UK, and the Netherlands. These increases amounted to an approximate €52 million hit on earnings. But it’s a pattern many industry watchers have seen before — operators grappling with tax burdens imposed by various jurisdictions. Lottery GGR specifically suffered, falling 2.1% to €2.98 billion. Still, fDJ cited fewer large Euromillions jackpots and decreased foot traffic at retail locations — a direct result of intense heatwaves in France during Q2 — as major factors. Retail sports betting didn’t fare much better, with GGR slipping 1.1% to €450 million despite the World Cup excitement in June.
Online Sectors Show Resilience
Despite the wider challenges, FDJ’s online betting and gaming unit maintained stable GGR, reporting €702 million for the period. This stability was largely driven by growth in France and Scandinavia, as opposed to the UK and Netherlands, where performance has lagged. Excluding the latter two markets, FDJ saw a 6.6% rise in online GGR, underscoring the potential of digital avenues amid physical retail slumps. To address its challenges in the UK and Netherlands, FDJ has initiated “targeted task forces” to foster better collaboration and strategies. Pallez mentioned that while some progress was visible in the Netherlands — with Q1 GGR dropping 15% but rebounding to just a 4.1% fall in Q2 — the UK situation remains under scrutiny. The company has hinted at potential shifts regarding Kindred’s portfolio, reflecting its openness to reevaluating asset performance.
Regulatory and Market Dynamics
The backdrop of this financial readjustment includes French and European regulatory environments becoming more stringent, reflecting a broader trend of increased intervention from governments seeking greater revenue. Regulators have often flagged these tax hikes as necessary, yet they’ve hit operators’ bottom lines hard. FDJ’s situation isn’t unique. Many operators in Europe are facing similar pressures from tax reforms aimed at tightening control over gambling revenues. Analysts have previously noted that such regulatory frameworks could reshape the market dynamics, particularly affecting smaller players more heavily.
Looking Ahead
FDJ’s future steps will involve a strategic review of its assets, with particular attention on the UK market. The company hasn’t ruled out any restructuring options. By the end of the year, FDJ plans to release further details on its revised strategic priorities and potentially announce any changes to its operational focus in these key markets.
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.
