France’s gaming sector continues to surprise with its resilience and ability to innovate. In 2024, market leader Française des Jeux (FDJ) reported impressive results, confirming solid growth despite an increasingly restrictive tax environment.
Solid financial performance in 2024
FDJ, Europe’s leading gaming and betting company, has announced a turnover of €3.07 billion for 2024, marking a 17% increase on the previous year. This significant increase is partly attributable to the acquisition of Kindred, which has been included in FDJ’s accounts since 11 October. Even without this acquisition, FDJ posted growth of 10%, with a 6% increase in gaming revenues in France.
Recurring earnings before interest, tax, depreciation and amortisation (EBITDA) also rose by 21% to €792 million, representing an EBITDA margin of 25.8%. These figures illustrate FDJ’s dominant position in the regulated French market and its ability to integrate new assets effectively.
New tax measures planned for 2025
Despite these positive results, FDJ is preparing to face financial challenges due to new tax measures that the French government is planning to apply to the gaming sector. These measures, which are currently under parliamentary scrutiny, are due to come into force on 1ᵉʳ July 2025 and will lead to several increases in public levies:
- Loto and Euromillions: public levies would rise from 68% to 69% of gross gaming revenue (GGR), with an increase in the general social contribution (CSG) from 6.2% to 7.2%.
- Point-of-sale sports betting: levies would increase from 41.1% to 42.1% of GGR, with the CSG rising from 6.6% to 7.6%.
- Online sports betting: public levies would rise from 54.9% to 59.3% of GGR, including a significant increase in CSG from 10.6% to 15%.
- Online poker: taxation would rise from 0.2% of stakes to 10% of GGR.
- Horse betting: although the CSG would remain unchanged, public levies would rise from 52.3% to 52.9% of the GGR, with additional contributions going to the racing companies.
- Drawing games and instant games: public levies would increase from 55.5% to 56.5% of the GGR, with the CSG rising from 6.2% to 7.2%.
In addition, the Social Security Financing Act introduces a 15% tax on the advertising and promotional expenditure of gaming operators, adding further financial pressure on the sector.
According to analysts, this measure could reduce the sector’s profits by 5 to 10% by the end of the year.
FDJ’s strategy in the face of tax challenges
FDJ anticipates that this new tax regime will reduce its sales and recurring EBITDA by around €45 million in the second half of 2025 and by around €90 million over a full year.
Despite this tax pressure, the company is confident in its ability to maintain a solid performance thanks to its strategy of diversification and cost optimisation. In particular, the integration of Kindred should enable it to offset some of these losses by expanding its activities in Europe and optimising its online offerings.
A gambling market in the throes of transformation
The French gambling market is undergoing rapid transformation, with increasing digitalisation and increasingly strict regulation. The French National Gaming Authority (ANJ) is steadily tightening its controls on operators to combat addiction and the risks of money laundering.
In addition, the increase in public levies is also intended to capture a larger share of the revenue generated by the gambling industry to fund public policies, particularly in the areas of health and sport. However, this stricter tax approach is causing concern among operators, who fear a slowdown in the market and a decline in the attractiveness of the sector.