FDJ United experienced declines in revenue and gross gaming revenue (GGR) due to tax increases and underperformance in its lottery segment during the first half of the year. The company's results, released on Wednesday, indicated a 4.5% decrease in revenue to €1.78 billion, with GGR dropping 1.3% to €4.31 billion.
Stéphane Pallez, the CEO and chairwoman of FDJ, pointed to rising tax burdens in critical markets such as France, Romania, the UK, and the Netherlands as significant contributors to the financial downturn. "The impact of gaming tax increases was about €52 million in H1," Pallez noted, highlighting the strain on performance.
The lottery sector reported a disappointing performance, contributing to the revenue decline with a 2.1% reduction in GGR to €2.98 billion, while revenue in that sector slipped 4% to €1.02 billion. "This underperformance stems from a notably low number and amounts of major Euromillions jackpots compared to 2025, along with reduced foot traffic at retail points of sale due to exceptional heatwaves during the second quarter," the company's earnings release stated.
In retail sports betting, GGR fell by 1.1% to €450 million, and revenue dropped 2.9% to €218 million in the first half of 2026. Despite these challenges, Pallez maintained a positive outlook, emphasizing FDJ's solid fundamentals and strong financial structure. "We continue to invest in innovation, enhance our product portfolio, and accelerate our transformation to return to a sustainable path of profitable growth," she said.
The company's online betting and gaming unit, however, performed according to expectations, with GGR steady at €702 million, though revenue experienced a 7.4% decline to €431 million. Performance in France and Scandinavia drove the online unit's results, with GGR outside the Netherlands and the UK rising 6.6% and revenue increasing by 0.6%.
In the Netherlands, FDJ reported ongoing improvement in its online business, as the Unibet brand saw a 4.1% GGR decline in Q2, improving from a 15% decline in Q1. The UK market remains challenging, as Pallez indicated that the situation there is still difficult. After FDJ's Q1 results were published, Pascal Chaffard, the gaming and betting chief, reiterated that the company had no plans to withdraw from the UK online betting market: "We are not considering exiting the UK. Our priority is to resolve the issues we face and improve our performance, which will likely take more time than just a single quarter."
To enhance its operations, the company launched targeted task forces aimed at improving performance in the UK and Netherlands markets. In light of its H1 results, FDJ hinted at a review of its Kindred business portfolio, raising questions about potential changes regarding its position in the UK.
During a post-results call, Pallez explained the purpose of the market portfolio review: "This is focused on optimizing our investments where we expect a good return in profitable growth. We’re not planning any exits at this stage but will continue to assess all our assets."
The underwhelming results in H1 have prompted FDJ to adjust its forecasts for the full year. Earlier, FDJ had anticipated slight GGR increases and a minor revenue decline for FY2026, estimating growth in revenue for both its French lottery and retail sports betting units.
Now, the company predicts stable GGR for lottery and retail sports betting, as well as for its online betting and gaming units, with revenue expected to decrease in the low single digits. FDJ reported an adjusted net profit of €180 million for H1 and pledged to optimize resource allocation going forward.
