European betting groups are facing tighter margins after Française des Jeux (FDJ) confirmed a €50m tax hit in its 2025 results.

Highlighting the direct impact of rising fiscal pressure across regulated EU markets, the FDJ reported that higher gambling taxes and compliance costs cut net income by 50% year-on-year.

The results mark a shift away from the high-growth cycle that benefited listed operators during the post-pandemic online boom.

The figures were reviewed on the latest episode of the iGaming Daily, where Charlie Horner was joined by SBC Editor-at-Large, Ted Menmuir, and Media Director, Martyn Elliott. The trio assessed how FDJ’s €2.5bn acquisition of Kindred Group supported its long-term positioning amid higher taxes in the UK, Netherlands and France.

“This is a reality check across the board for European gambling PLCs,” said Menmuir, describing FDJ’s results as early evidence of how tax increases are reducing profitability across the sector.

Despite lower earnings, FDJ’s share price rose 8% after the announcement. Elliott noted that investors may have already factored in higher taxes and responded positively to management’s cost-control strategy and integration roadmap.

FDJ expects its annual tax burden to increase to €90m next year. The French lottery division recorded 3% growth, but online betting and gaming GGR declined 8%, reflecting the impact of 2024 tax changes in the UK and Netherlands.

Following the acquisition of Kindred, FDJ has entered a new integration phase. The departure of Kindred CEO, Nils Andén, signals the end of the transition period.

The three concluded that sustained tax increases will compress margins and accelerate consolidation. Smaller operators may struggle under higher fiscal regimes, while larger, well-capitalised groups such as FDJ could gain share through acquisition.