Française des Jeux (FDJ) has begun to take steps which will “have a phased effect” and will help to “fully offset” the impact of French betting and gaming tax increases by 2027 through a multi-year action plan.
The group made the statement as part of its full-year 2024 financial update and 2025 outlook update ahead of the release of its full 2024 results and outlook next month on 6 March.
FDJ noted that France’s 2025 Social Security Financing Act will “significantly affect” its expected performance.
“As the legislation in the process of being adopted by Parliament currently stands, FDJ estimates that the increase in betting and gaming levies in France applicable with effect from 1 July 2025 will automatically reduce its revenue and recurring EBITDA by nearly €45m in financial year 2025, equating to a full-year impact of nearly €90m,” stated the group.
Regarding public levies on betting and gaming in France, for online and point-of-sale lottery games, Loto and Euromillions will increase to 69% of gross gaming revenue (previously 68%) with the social security levy (CSG) rising to 7.2% of GGR (previously 6.2%).
Other draw games and instant games will increase to 56.5% of GGR (previously 55.5%), with the CSG rising to 7.2% of GGR (previously 6.2%).
For sports betting, point-of-sale public levies will increase to 42.1% of GGR (previously 41.1%), with the CSG rising to 7.6% of GGR (previously 6.6%). Online sports betting will increase to 59.3% (previously 54.9%), with the CSG rising to 15% of GGR (previously 10.6%).
Public levies on online poker will rise from 0.2% of stakes to 10% of GGR. The CSG on online horse race betting will not change, but the levy paid to racecourse companies will increase (this is an annual change by decree). The rate of public levies will rise to 52.9% of GGR (previously 52.3%).
A 15% tax on advertising and promotional expenditure by gaming operators will also be introduced through the Social Security Financing Act.
FDJ noted that gaming revenue in France totalled more than €2.6bn in 2024 after public levies of over €4.4bn.
“FDJ reiterates that taxes on betting and gaming relate to gross gaming revenue (GGR, which consists of stakes less player winnings),” the group said.
“GGR is broken down between public levies and the operator’s revenue. The percentage breakdown is directly determined by the tax rate applicable to each category of game.
“As an indication, the 1 point increase in taxes on lottery games automatically reduces lottery revenue by around 2%. Stakes are not affected by tax increases. The full impact of the resulting reduction in revenue is reflected in recurring EBITDA.”
2024 update
FDJ also provided an update on its revenue and recurring EBITDA, noting that 2024 was a “very strong performance” and “ahead of expectations”.
The group stated that revenue was up 17% to €3.07bn when “integrating Kindred with effect from 11 October and on the basis of the scope of business retained”. Excluding Kindred, revenue increased by 10%, with revenue from gaming in France up 6%.
Recurring EBITDA was up 21% to €792m with a margin of 25.8%.
FDJ added: “On a pro forma basis, assuming Kindred had been acquired on 1 January 2024 and based on the scope of business actually retained by FDJ, Group revenue comes out at nearly €3.8bn, with a current EBITDA margin of around 25.5%.”
