A cash-rich French lottery monopoly trying to outrun Europe’s taxman while integrating Kindred—paid to wait with an 8%+ yield.
Overview
FDJ United (formerly La Française des Jeux) is a diversified European lottery, gaming, and sports betting group that uniquely blends a **state-sanctioned French monopoly** with exposure to competitive, regulated online betting markets. The company has evolved from a primarily domestic operator into a broader pan-European platform, most notably through the **€2.45bn acquisition of Kindred (late 2024)**, which expanded its geographic footprint and strengthened its digital brand portfolio. Operations are organized into four units: (1) **French Lottery & Retail Sports Betting**—the cash-flow cornerstone with exclusive rights, a ~**29,000** point-of-sale network, **€6.95bn GGR**, **€2.538bn net revenue**, and **36% recurring EBITDA margin** (2025); (2) **Online Betting & Gaming**—the growth engine housing brands like Unibet/32Red with **€908m net revenue** and ~**20% EBITDA margin** amid high taxes and competition; (3) **International Lottery** (notably Premier Lotteries Ireland) with stable concession-like earnings; and (4) **Payments & Services**, an early-stage effort to monetize the retail footprint via payment/collection and merchant services (currently loss-making). FDJ’s investment appeal is the combination of durable monopoly cash flows, high free-cash generation, and a heavily discounted valuation due to regulatory/tax uncertainty—paired with a very high dividend yield.