FDJ Confident in Growth Despite French Tax Hike

Despite regulatory challenges and increased gambling taxes, La Française des Jeux (FDJ) is optimistic about its growth prospects for 2025 and beyond. The group’s robust 2024 performance, strategic adjustments, and multi-year action plan perfectly position it to mitigate the impact of recent tax increases and sustain its impressive momentum.

Core Financials Remain Robust

FDJ generated €3.065 billion ($3.21 billion) in revenue in 2024, a 17% rise from the previous year. The successful integration of Kindred, acquired by FDJ in October 2024, was among the leading revenue drivers. Overall revenue from gaming activities in France also rose 6%, demonstrating robust organic growth that should help offset market challenges.

In addition, EBITDA soared to €792 million ($830 million), up 21%, with a 25.8% margin. On a pro forma basis, assuming Kindred was integrated for the entire year, the company’s total revenue would have soared to almost €3.8 billion ($3.98 billion), with an EBITDA margin of 25.5%.

These figures underline FDJ’s positive outlook for 2025 as the operator seeks to expand its market share and drive profitability despite rising regulatory pressures. While FDJ’s financial performance remains stable, the group acknowledges the impact of France’s 2025 Social Security Financing Act, which hiked levies on gambling activities.

Increased Levies Necessitate Adaptiveness

Starting from 1 July 2025, the tax hike is expected to reduce FDJ’s full-year turnover and EBITDA by around €45 million ($47,16 million) for the remainder of the year. On a full 12-month basis, the impact would be around €90 million ($94,31 million). In response, FDJ has already launched a multi-year action plan to offset this tax charge by 2027.

The 2025 Social Security Financing Act in France will significantly affect the Group’s expected performance.

FDJ statement

Although the operator has not announced specific details, the plan will likely include operational efficiencies, strategic investments, and optimized marketing strategies. These measures aim to help FDJ excel in an increasingly competitive gambling market. According to France’s gambling regulator, L’Autorité Nationale des Jeux (ANJ), the broader industry plans to step up promotional efforts to deal with regulatory pressures.

Increasingly aggressive marketing strategies underline the growing competition in the French gambling sector, requiring FDJ to stay agile in its promotional campaigns while maintaining regulatory compliance. Despite short-term challenges, the operator’s strong brand presence, leadership position, and strategic initiatives should perfectly position it for long-term success.