FDJ United expects to see annual growth for its French lottery and retail betting operations after a lull in revenue as struggles from 2025 continue into this year.
The Paris Euronext firm, operator of the French National Lottery while also active internationally in lotteries, sports betting and gaming, published its Q1 2026 results this morning.
FDJ hits lottery hurdles
Overall group revenue was down 3.2% from €925m (£803m) to €895m, with French lottery and sports betting revenue also down 2.1% from €640m to €627m. French lottery revenue specifically was down 1.8% to €519m.
Split down the middle, instant games revenue outpaced that from draw games – an increase of 1.1% to €320m versus a 6.2% decline to €199m for the latter. The firm has attributed the overall flat performance of its French lottery operations to a number of factors.
Firstly, FDJ states that there were ‘temporary impacts’ leading to few long cycles for draw games, therefore affecting lottery revenues. Continued momentum for both retail and online instant draw games also affected this revenue.
On the sports betting side of things, in France at least, the firm attributed the decline to ‘less attractive sports fixtures’ and a higher payout ratio across retail sports betting.
In contrast to its performance in France, FDJ United’s international lottery division continued to take strides forward in Q1. The firm saw a 7% increase in international lottery revenue from €38m to €41m, with a key overseas asset being Premier Lotteries Ireland (PLI).
FDJ acquired PLI in 2023, while trading under its previous moniker of Française des Jeux, for €350m. In Q1 2026, the FDJ noted that while its international business performed well, the Irish lottery business was ‘adversely affected’ by factors like an ‘exceptional number of lotto jackpot winners’.
Regarding retail vs online betting, revenue from the former fell 3% to €546m while online lottery revenue was up 1% to €81m, representing 15.5% of FDJ’s total lottery revenue during the first quarter.
Talking tax
Stéphane Pallez, Chairwoman and Chief Executive Officer of FDJ United, noted that the group finds itself competing ‘in an environment still affected by the impact of tax increases and tighter regulations on gaming’.
From last summer, France’s gambling sector has been subject to some of the heftiest taxes in Europe. Online sports betting rates on gross gaming revenue were increased to 59.3%, lottery rates to 69%, and online poker to 10%.
Further complicating matters for FDJ in 2026 are taxes in the Netherlands and the UK. Dutch gaming taxes currently stand at 39.8% of GGR, while in the UK the Remote Gaming Duty (RGD) on online gaming was increased from 21% to 40%.
This doesn’t bode well for brands like Unibet – one of FDJ’s main online sportsbook properties – acquired alongside the 32Red online casino via FDJ’s takeover of Swedish multinational Kindred.
In Q1, FDJ’s online betting and gaming division recorded a 1% drop in GGR to €342m and 8% decline in overall revenue to €213m. The impact of the Netherlands and UK can be seen plainly here, as if these markets were excluded the segment’s revenue would have risen 6%.
Looking ahead, FDJ expects a ‘slight increase’ in GGR but an overall ‘slight decline’ in revenue at the end of 2026, suggesting that the full year will be just as much of a mixed bag as its first three months have been.
Pallez added that FDJ United 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”.