FDJ United cuts 2026 guidance as EuroMillions slump and tax rises hit revenue

FDJ United cut its 2026 guidance for a second time within three months, disclosing that revenue declined 5.6% to €2.58 billion over the nine months ending in September. The French operator's updated outlook points to a mid-single digit revenue decline this year, alongside a low-single digit decline in GGR for 2026. iGaming Business reported the revision.

Over the nine-month period, GGR declined 2.8% to €6.26 billion. The third quarter proved weaker still, with revenue of €794 million (down 8.1%) and GGR of €1.95 billion (down 6.1%). According to the group, large jackpots were far scarcer than in 2025 and the ones that appeared were smaller, especially in EuroMillions; in addition, sports bettors collected unusually large winnings in Q3, particularly in retail. In France, the company pointed to tough economic conditions that kept customers away from points of sale. Additional gaming taxes cost the group €62 million and contributed more than two percentage points to the revenue decline.

More than €70 million in extra gaming taxes is baked into the revenue forecast. Back in July, when it reported H1 results, the group had projected stable GGR together with a low single-digit revenue decline. Cost control is expected to hold the recurring EBITDA margin near 23%, and the company reiterated its aim of lifting the dividend annually, paying out at least 75% of adjusted net profit.

Within the French lottery and retail sports betting unit, GGR came to €4.98 billion, a 3.5% decrease, while revenue was €1.79 billion, down 4.8%, following €28 million in extra taxes. Draw games revenue dropped 12.2% to €563 million. EuroMillions produced 12 jackpots above €130 million by the end of September, versus 27 a year before, and just one above €200 million, against 12 in the same stretch of 2025. FDJ United explained that stakes swing sharply with jackpot size, which made the shortfall painful for activity, and noted that France's pattern mirrored the average of all ten European lotteries participating in EuroMillions. Instant games fared better: GGR gained 1.9% and revenue 0.3% to €935 million. Retail sports betting revenue declined 4.5% to €297 million, while the proportion of stakes returned to players climbed more than 400 basis points to almost 80%.

At the online betting and gaming unit, GGR was essentially unchanged, slipping 0.8% to €1.01 billion, and revenue dropped 8.2% to €619 million once €34 million in extra taxes were counted. Leaving out the Netherlands and the UK, GGR climbed 5.7% and revenue edged up 0.8%, helped by solid performances in France and Scandinavia. The Netherlands recorded an 8.6% GGR decline and the UK 24.4%. Management believes action plans in both markets will restore performance over time, and a fresh leadership team is developing a plan to expand the unit while reducing costs. In parallel, FDJ United is accelerating deployment of one proprietary sports betting platform, targeted for most of its markets by the end of 2027, and is restructuring its European development teams as part of that effort.

Stéphane Pallez, chairwoman and CEO of FDJ United, attributed the results to “factors inherent to the gaming sector, a decrease in traffic at points of sale against a backdrop of an unfavourable economic climate, as well as the expected increase in taxation”. Despite the challenging backdrop, Pallez stressed that the group stays fully committed, and she said it is “resolutely pursuing the implementation of its action and performance plans to swiftly regain a sustainable growth momentum”. Innovation, she added, together with more attractive games, will be the route back to growth.

Among the group's priorities are a relaunch of Loto and EuroMillions, the pan-European draw game it runs in France, plus a turnaround of its online operations in the UK and the Netherlands. FDJ United is also examining the markets served by its online unit and its non-core assets, notably in the Payment and Services unit, with findings due by early 2027 at the latest. On the lottery side, extra draw game events are planned for Q4, and during 2027 the group will bring back Loto and EuroMillions and introduce a new €10 instant game. Full-year results are scheduled for 18 February 2027.