Despite facing regulatory challenges and increased gambling taxes, La Française des Jeux (FDJ) remains optimistic about its growth prospects for 2025 and beyond. The group’s robust 2024 performance, strategic adjustments, and multi-year action plan position it well to mitigate the impact of recent tax increases and sustain its impressive momentum.
Core Financials Remain Robust
In 2024, FDJ generated €3.065 billion ($3.21 billion) in revenue, marking a 17% increase from the previous year. A significant revenue driver was the successful integration of Kindred, acquired by FDJ in October 2024. Revenue from gaming activities in France also rose 6%, demonstrating strong organic growth to offset market challenges.
Additionally, 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 reached almost €3.8 billion ($3.98 billion), with an EBITDA margin of 25.5%.
These figures underscore FDJ’s positive outlook for 2025 as it 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 increased levies on gambling activities.
Increased Levies Necessitate Adaptiveness
Starting from July 1, 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 burden by 2027.
“The 2025 Social Security Financing Act in France will significantly affect the group’s expected performance,” FDJ said in a statement.
Although specific details have not been announced, 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 increase promotional efforts to address regulatory pressures.
The growing competition in the French gambling sector necessitates increasingly aggressive marketing strategies, requiring FDJ to remain 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 position it well for long-term success.
