FDJ United H1 Revenue Falls 4.5% on Tax Hits and Weak Lottery
The French gaming giant reported a tough first half as tax increases across four key markets and a slow Euromillions jackpot cycle dragged down both revenue and GGR. Its online unit held steadier, though the UK remains a headache.
A Rough Six Months in Paris
FDJ United, the French gaming conglomerate that absorbed Kindred Group and its Unibet brand, had a difficult first half of 2026. The company’s H1 results, released Wednesday, showed revenue falling 4.5% to 1.78 billion euros and gross gaming revenue slipping 1.3% to 4.31 billion euros. Two culprits took center stage: a wave of tax increases across key markets and a lottery sector that simply could not catch a break.
CEO and chairwoman Stephane Pallez pointed directly at higher gaming taxes in France, Romania, the UK, and the Netherlands. Taken together, those increases hit H1 revenue by approximately 52 million euros, according to the company’s earnings release. That is a substantial drag before you even get to the operational picture.
Lottery Woes and a Heatwave
FDJ’s lottery segment, historically the company’s anchor business, had a genuinely rough stretch. Lottery GGR dropped 2.1% to 2.98 billion euros in H1, while lottery revenue fell 4% to 1.02 billion euros.
The explanation, spelled out in FDJ’s earnings release, was twofold. First, there were significantly fewer major Euromillions jackpots compared to the same period in 2025, and those that did occur were smaller. Lottery enthusiasm tends to track jackpot cycles closely, so a quiet run at the top end pulls traffic down across the board. Second, and more unusually, the second quarter saw lower foot traffic at points of sale that the company attributed to exceptional heatwaves. People apparently decided that standing in line at a lottery terminal was not worth the heat.
Retail sports betting did not escape the pressure either. That segment’s GGR edged down 1.1% to 450 million euros, with revenue falling 2.9% to 218 million euros.
Online Holds Its Ground, Mostly
The relative bright spot was the online betting and gaming unit, which FDJ described as performing in line with expectations. H1 GGR there held steady at 702 million euros. Revenue did decline 7.4% to 431 million euros, but the company’s tone around the online business was notably more measured than its language around lottery and retail.
France and Scandinavia were the standout performers. Strip out the Netherlands and the UK entirely, and the online unit’s GGR grew 6.6% with revenue nudging up 0.6%. That figure illustrates just how much weight those two markets are carrying on the wrong side of the ledger.
The Netherlands story is at least trending in the right direction. Unibet’s GGR there fell 4.1% in Q2, which sounds rough until you compare it to the 15% plunge posted in Q1. Progress is slow, but the direction has changed.
The UK Situation Stays Difficult
FDJ’s language around the UK was considerably less encouraging. The company’s earnings release stated plainly that “the situation remains difficult,” and management has been navigating that market cautiously since flagging a turnaround plan in Q1.
In April, following the Q1 release, FDJ’s gaming and betting chief Pascal Chaffard pushed back firmly against any suggestion the company might exit the UK entirely. “For me, there is absolutely no question of getting out of the UK,” he said, framing the recovery timeline as “some quarters” rather than years. The company has since moved to set up targeted task forces to address the problems there.
FDJ United also hinted, in its H1 release, at a broader review of the markets where its Kindred online betting business is active. That is a notable signal given Kindred’s geographic footprint, and it suggests the company may be willing to make harder choices about where it concentrates resources going forward.
Pallez, for her part, kept the framing optimistic, citing solid fundamentals and a commitment to investing in product and transformation. Whether the second half of 2026 brings better jackpot luck and a tax environment that stabilizes will go a long way toward determining if that optimism has somewhere to land.
How much did FDJ United's revenue fall in the first half of 2026?
FDJ United reported a 4.5% drop in H1 2026 revenue to 1.78 billion euros, while gross gaming revenue dipped 1.3% to 4.31 billion euros, according to the company's earnings release.
Why did FDJ's lottery business underperform in H1 2026?
FDJ attributed the lottery sector's struggles to a significantly lower number and total amounts of major Euromillions jackpots compared to 2025, plus reduced foot traffic at retail points of sale during exceptional heatwaves in the second quarter.
What is FDJ United doing about its struggling UK business?
FDJ has initiated plans to implement targeted task forces to address the UK situation. Gaming and betting chief Pascal Chaffard stated in April that there was no intention of withdrawing from the UK market, framing the turnaround as a matter of several quarters rather than years.
How did FDJ's online betting and gaming unit perform in H1 2026?
The online unit's GGR was stable at 702 million euros, though revenue declined 7.4% to 431 million euros. Excluding the Netherlands and the UK, the unit's GGR grew 6.6% and revenue edged up 0.6%.