FDJ United Eyes Lottery M&A for US Market Entry

FDJ United is targeting lottery acquisitions as its route into the United States, with CEO Stéphane Pallez ruling out any move into North American sports betting due to what she described as “potential disruption from other types of activities.”

The strategic declaration came alongside the group’s full-year 2025 results, published on 19 February, which showed restated gross gaming revenue up 1% to €8.71bn but total revenue down 3% to €3.68bn — a direct consequence of gaming tax increases across its key European markets.

Lottery as the US Entry Point

Pallez’s preference for lottery M&A rather than sports betting as the vehicle for a North American push reflects FDJ United’s core identity as Europe’s second-largest lottery operator. The group runs France’s national lottery, holds the concession for Ireland’s National Lottery — acquired in 2023 — and bills itself as the fourth-largest lottery operator globally by World Lottery Association rankings.

The US lottery sector presents a structurally different opportunity to the competitive and margin-compressed sports betting market. State lottery concessions operate under long-term exclusive contracts, and several are subject to periodic renewal processes that open opportunities for private operators. FDJ’s B2B technology division, FDJ Gaming Solutions, has existing relationships with lotteries internationally and has positioned itself as a modernisation partner for state-run operators.

Pallez did not name specific targets or provide a timeline, and FDJ United’s 2026 financial communication calendar shows the next scheduled update is Q1 revenue on 21 April.

2025 Results: Tax Headwinds, Digital Pressure

The full-year figures underline the scale of the European tax environment FDJ United is navigating. Against restated 2024 comparisons — which treat Kindred as fully consolidated throughout — GGR edged up 1%, but revenue fell 3% as higher public levies on gross gaming revenue mechanically compressed the operator’s retained share. Total gaming taxes increased 3.2% year-on-year, resulting in the group paying €5.21bn in levies across the year.

The online betting and gaming segment, which houses the Kindred brands including Unibet and 32Red, was the weakest performer. GGR fell 13.5% and revenue dropped 11.8% to €908m. The Netherlands was the sharpest drag, with GGR down 38.3% following tax increases there. UK revenue fell 22.4%, partly due to the prior-year comparison including Euro 2024 and to ongoing regulatory pressure. GGR in other markets grew 5.6%, supported by Parions Sport en ligne, Unibet, and ZEturf in France.

The French lottery and retail sports betting division remained the group’s dominant revenue source and the only segment to report growth for the full year. Online lottery revenue within that division rose 8.1% to €316.2m. Point-of-sale sports betting revenue fell 2.3% to €442m on tough prior-year comparisons, while overall point-of-sale revenue was up 0.5% to €2.22bn. International lottery revenue fell 10.7% to €169.9m, reflecting the disposal of Sporting Group at the end of 2024 and the wind-down of low-margin B2B contracts.

Recurring EBITDA came in at €902m, representing a margin of 24.5%, in line with the group’s own targets.

“In 2025, FDJ UNITED demonstrated the strength of its model and continued its transformation, in an environment affected by tax increases and tighter regulations on gaming. With a strengthened performance plan and a new organization of its online betting and gaming business unit, the Group will continue to improve its operational efficiency to return to its profitable and sustainable growth path by 2026.”
— Stéphane Pallez, Chairwoman and CEO, FDJ United

Leadership Changes and Brand Integration

FDJ United confirmed that Nils Andén, former Kindred Group CEO who had been leading the group’s online betting and gaming division since March 2025, will leave once the Kindred integration is completed. Pascal Chaffard, previously CFO and head of strategy and performance, will assume responsibility for the online division alongside group strategy and operational transformation. A new CFO recruitment process is underway.

Separately, FDJ United confirmed that ParionsSport — its France-facing sports betting brand dating to 2009 — will be migrated into Unibet by the end of March 2026. Customers will be transferred via an app update, consolidating FDJ’s online sports betting under the Kindred flagship brand.

2026 Outlook and Medium-Term Targets

For 2026, FDJ United is guiding for slight revenue growth and a stable recurring EBITDA margin of 24.5%. The group expects GGR growth to be higher in the online betting and gaming division than in the French lottery and retail segment, but tax increases — including the UK’s online casino rate rising to 40% from 1 April — will dampen revenue growth for both.

The cumulative impact of gaming tax increases is expected to reach nearly €90m in 2026, combining the full-year effect of 2025 increases in France and Romania with new increases in the Netherlands from January and the UK from April. FDJ’s performance savings programme has been revised upward: the cumulative target by end-2028 has increased from over €120m to over €150m, reached one year ahead of schedule.

Over the 2026–2028 period on a constant tax basis, FDJ United now targets revenue growth of around 5% by 2028 and a recurring EBITDA margin of over 26%, with medium-term projections otherwise unchanged.

The clearest growth catalyst outside Europe, according to Pallez, sits in the US lottery market — which, if pursued, would mark the first time FDJ United has operated in North America.

For more context on FDJ United’s full-year financial performance, see FDJ United shares jump nearly 10% as full-year results beat expectations. On the broader US legislative landscape shaping where European groups can and cannot move, see US gambling legislation 2026: expansion and crackdowns update.

Source: EGR Global, FDJ United