The French gambling group has invested in ProphetX through its venture arm as higher taxes and pressure in some online markets weigh on its European business.
FDJ UNITED has taken a stake in US prediction-market operator ProphetX, placing a strategic bet on one of the industry’s fastest-growing sectors as its own first-half earnings came under strain, according to a statement from the prediction-market firm.
The investment comes as FDJ UNITED continues its expansion beyond France following the acquisition of Kindred and its Unibet brand. First-half revenue fell 4.5 per cent to €1.78 billion and recurring EBITDA declined 8.4 per cent to €404 million, which the company said largely reflected higher gaming taxes across several European markets rather than a slowdown in its expansion strategy.
A growth bet outside Europe
FDJ Ventures participated in a $35 million funding round announced by ProphetX on Tuesday. The amount invested by FDJ UNITED was not disclosed.
ProphetX secured approval from the US Commodity Futures Trading Commission (CFTC) in June 2026. The CFTC registered ProphetX as a derivatives clearing organisation on 10 June 2026 and designated it as a contract market the following day. That federal framework allows the company to offer event contracts, including markets linked to sporting outcomes, rather than operating under the conventional state-by-state sportsbook model.
The attraction for FDJ UNITED is clear: prediction markets offer exposure to a US product category growing quickly beyond the boundaries of traditional sports betting.
The investment could also give FDJ UNITED a foothold in prediction-market infrastructure without requiring it to launch a product under one of its consumer brands. So far, however, neither company has announced an integration with Unibet or another FDJ UNITED operation.
Regulatory uncertainty on both sides of the Atlantic
FDJ UNITED’s investment gives the group an early position in prediction markets even as the sector remains controversial on both sides of the Atlantic. In France, where the company is based, the ANJ considers platforms such as Polymarket and Kalshi illegal gambling services and has recently ordered internet providers to block Polymarket.
The position is less settled in the US. ProphetX operates under federal CFTC oversight, but several states and gambling groups argue that sports event contracts are wagers being offered outside established betting laws.
Tax rises bite into FDJ UNITED’s results
FDJ UNITED’s move into prediction markets comes as higher gambling taxes erode the benefits of comparatively stable customer activity.
The group said tax increases in France, Britain, the Netherlands and Romania reduced first-half revenue by €52 million. Its online betting and gaming division recorded stable gross gaming revenue of €702 million, but revenue dropped 7.4 per cent to €431 million after almost €24 million in additional taxes.
Performance remained under pressure in Britain and the Netherlands, although the group reported a significant second-quarter improvement in the Dutch market. Excluding those two markets, online gross gaming revenue increased 6.6 per cent, supported by France and Scandinavia.
The French lottery business was also hit by fewer large EuroMillions jackpots and lower shop traffic during exceptional heatwaves. Lottery gross gaming revenue fell 2.1 per cent to €2.98 billion, while revenue declined 4 per cent to €1.02 billion.
“The Group’s performance in the first half is still affected by higher taxation, alongside factors inherent to the lottery business and the impact of exceptional heatwaves which have weighed on traffic at points of sale in France,” chairwoman and chief executive Stéphane Pallez said.
The company now expects broadly stable full-year gross gaming revenue and a low single-digit decline in revenue, replacing its earlier expectation of slight growth. It maintained its target for a recurring EBITDA margin of between 23 per cent and 24 per cent.
FDJ UNITED has also begun reviewing the markets in its online betting and gaming portfolio and its non-core assets, particularly within its Payment and Services division, suggesting that capital may increasingly be directed towards businesses with stronger long-term prospects.
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