FDJ United - Tech & Product Strategy: Key Takeaways from Q1 2025

Gaming Eminence
Apr 21
11 min read

We've reviewed FDJ United’s latest earnings reports, presentations, and press releases to highlight key initiatives shaping their technology and product strategy. From significant platform investments, including the rollout of the Kindred Sportsbook Platform (KSP), to innovative omnichannel programs like FDJ & Moi, this overview underscores FDJ United's strategic commitment to digital transformation, operational efficiency, and competitive differentiation across European markets through 2025.

Key Takeaways

Successful KSP rollout advances proprietary platform strategy: Management highlighted the successful migration of 32Red to the internal Kindred PAM and sports betting platform in the UK in early March as a key milestone in the phased KSP deployment strategy, which is expected to achieve full deployment by 2026.
Unified platform architecture central to competitive strategy: Management articulated a clear vision of transitioning to a unified platform architecture to facilitate more efficient operations across European markets, stating it "will give us a competitive advantage compared to most of our competitors that don't have this one platform very efficient to operate over all the European countries."
Technology investments driving significant financial benefits: The Q1 technology initiatives are expected to generate over €50 million in additional synergies and cost optimizations through corporate efficiencies, marketing mutualization, platform consolidation, and procurement synergies.
Strong lottery product performance contrasts with online betting challenges: Lottery revenue increased 5% to €528 million, driven by both draw and instant games, while online betting and gaming revenue declined 10% at constant currency to €231 million, primarily due to regulatory changes in the Netherlands and UK.
Euromillions drives exceptional digital player acquisition: Management highlighted the exceptional performance of Euromillions with 11 jackpots exceeding €75 million, culminating in a March rollover jackpot of €250 million that drove acquisition of more than 300,000 new players in a single week.
FDJ & Moi omnichannel program launches: A cornerstone of the digital transformation strategy, the FDJ & Moi program launched on March 31, 2025, enabling unified player accounts across online and physical channels, enhanced player behavior understanding, and improved responsible gaming measures.
Digital transformation driving online growth: Online lottery revenue increased 14% year-on-year to €79 million (now 15% of total lottery revenue), with solid growth in active online players (5% increase from Q4 2024, nearly 10% year-on-year).

Executive Summary

In Q1 2025, FDJ United's management focused on advancing strategic technology initiatives and product development to strengthen its competitive position across European markets. The company made significant progress on two key technology fronts: the continued rollout of the Kindred Sportsbook Platform (KSP) and the advancement of its proprietary platform integration.

A notable milestone was the successful migration of 32Red to the internal Kindred PAM and sports betting platform in the UK in March, representing an important step in the phased KSP deployment strategy. The KSP platform incorporates advanced machine learning and algorithmic decision-making technologies designed to enhance betting capabilities and create real-time customer relevance. Management positions this proprietary platform as essential for maintaining competitive differentiation while improving scalability and profitability.

In parallel, the company finalised the separation of player accounts between lottery under exclusive rights and betting/gaming open to competition in France, preparing for the planned merger of Parions Sport en Ligne and ZEturf by mid-2025. Management articulated a vision of transitioning to a unified platform architecture to facilitate more efficient operations across European markets.

Product performance was mixed across segments, with lottery showing robust growth while sports betting and online gaming faced challenges in certain markets. The lottery segment benefited from strong Euromillions performance, while online betting and gaming revenue declined due to regulatory implementation in the Netherlands and UK. Despite revenue challenges, management highlighted solid growth in active players, increasing by more than 5% quarter-over-quarter and nearly 10% year-over-year.

A cornerstone of FDJ United's digital transformation strategy is the FDJ & Moi program, launched on a trial basis in the South-East region in late March. This omnichannel initiative enables unified player accounts that allow customers to play both online and at physical points of sale, enhancing player identification while promoting responsible gaming.

The integration process following the Kindred acquisition has identified additional synergies and cost optimisation opportunities. Management now expects to achieve more than €50 million in additional synergies and cost optimisations through 2027, derived from corporate operating model efficiencies, media and marketing mutualization, online betting and gaming platform consolidation, and procurement synergies.

Looking ahead, management outlined key integration priorities for 2025, including continuing the KSP rollout across multiple markets, completing the merger of online betting operations in France, implementing the new organisational structure, and executing additional synergy initiatives. The roadmap maintains the target of full KSP deployment by 2026, with the goal of operating on a single platform architecture to provide competitive advantages across European markets.

Strategic Technology Initiatives in Q1 2025

FDJ United made significant strides in advancing its strategic technology roadmap during Q1 2025, focusing on proprietary platform development and the progressive rollout of the Kindred Sportsbook Platform (KSP). These initiatives represent critical components of the company's strategy to enhance its competitive position and drive operational efficiencies across its expanding European footprint.

KSP Rollout Progress

A key milestone in Q1 2025 was the successful migration of 32Red to the internal Kindred PAM and sports betting platform in the UK in early March. This achievement marks an important step in the company's phased KSP deployment strategy, which began with live production testing in 2024 and is expected to achieve full deployment by 2026.

The KSP platform incorporates advanced machine learning and algorithmic decision-making technologies designed to enhance in-play betting capabilities, create real-time customer relevance, and customise rewards according to local market requirements. Management has positioned this proprietary platform as essential for maintaining competitive differentiation while improving scalability and long-term profitability.

Proprietary Platform Integration

In parallel with the KSP rollout, FDJ United finalised the separation of player accounts between lottery under exclusive rights and betting/gaming open to competition in France in early February. This development prepares the ground for the planned merger of Parions Sport en Ligne and ZEturf by mid-2025.

Management has articulated a clear vision of transitioning to a unified platform architecture that will facilitate more efficient operations across European markets and enable synergistic expansion:

"What we are doing in 2025, beginning on 2026 is to do the transition and to have the one platform that is needed to continue to grow and continue to add new countries into our portfolio... And it will give us a competitive advantage compared to most of our competitors that don't have this one platform very efficient to operate over all the European countries."

Strategic Impact and Competitive Positioning

The technology investments in Q1 2025 reflect a strategic focus on building proprietary capabilities that will drive both operational efficiencies and competitive differentiation. Management has highlighted that these initiatives will generate significant financial benefits, with over €50 million in additional synergies and cost optimisations identified.

From a competitive standpoint, the proprietary platform strategy delivers several advantages:

Reduced dependency on third-party providers like Kambi
Enhanced ability to manage competitive pricing and risk
Greater agility in entering new markets and adapting to regulatory changes

These technology initiatives position FDJ United to strengthen its competitive stance in the European gaming landscape while creating a foundation for sustainable growth.

Product Portfolio and Development

FDJ United's product portfolio demonstrated mixed performance across segments in Q1 2025, with strong results in lottery products contrasting with challenges in online betting and gaming markets affected by regulatory changes. Management's commentary highlighted both successful product launches and strategic product development initiatives designed to strengthen the company's competitive position.

Lottery Product Performance

The lottery segment showed robust performance in Q1 2025, with revenue up 5% to €528 million, driven by both draw and instant games. Management highlighted the exceptional performance of Euromillions, which featured a record quarter with 11 jackpots exceeding €75 million, including 7 above €130 million. This culminated in a March rollover jackpot that reached €250 million, driving significant new player acquisition with more than 300,000 new players in a single week.

The company successfully launched several new instant games during the quarter, including "Royaume d'Or" in February and "Bonne étoile," both available online and at points of sale. Management also noted the success of online-exclusive games such as "Exploration Jungle," which contributed to the 14% growth in online lottery revenue to €79 million. The online channel now represents 15% of lottery games revenue, up from 14% in Q1 2024.

Sports Betting and Online Gaming

The sports betting and online gaming segments faced more challenging conditions in Q1 2025. Retail sports betting revenue decreased slightly by 1% to €112 million despite a 5% increase in stakes. Management attributed this to "a fall of more than 100 basis points in the gross margin on sports betting as a result of unfavourable results for the operator".

Online betting and gaming revenue totaled €231 million, down 10% at constant currency. Despite this decline, management emphasised the solid growth in active players, increasing by more than 5% compared to Q4 2024 and nearly 10% year-over-year. The revenue decrease was primarily attributed to stricter regulatory implementation in the Netherlands and United Kingdom and increased gaming taxation in the Netherlands. Excluding these markets, management reported that revenue would have increased by 8%, highlighting the good performance in other markets, particularly France.

Product Roadmap Initiatives

Management outlined several key product initiatives for 2025. A significant development is the upcoming launch of "FDJ & Moi," an omnichannel program starting March 31, 2025, that will allow players to use their accounts both online and at points of sale. This initiative aims to enhance player identification and provide exclusive advantages while promoting responsible gaming.

The lottery product roadmap includes several planned launches throughout 2025, including "Mission Nature" (€3) in April, "CashPocket" (€3) in June, and "Mission Patrimoine" (€15) in September. For sports betting, management highlighted the opportunities presented by the new Champions League format and the new Club World Cup, while continuing to roll out the Kindred Sportsbook Platform (KSP) across several European markets.

Digital Transformation and Omnichannel Strategy

FDJ United's digital transformation strategy gained significant momentum in Q1 2025, with several key initiatives advancing the company's omnichannel capabilities and online growth ambitions. Management's focus on digital transformation is evident through both strategic platform developments and innovative customer-facing initiatives designed to enhance player experience while maintaining responsible gaming principles.

FDJ & Moi Omnichannel Initiative

A cornerstone of FDJ United's digital transformation strategy is the FDJ & Moi program, which launched on a trial basis in the South-East region on March 31, 2025. This innovative omnichannel initiative represents a significant evolution in the company's approach to player relationships, enabling:

Unified player accounts that allow customers to play both online and at physical points of sale in an identified manner
Enhanced understanding of player practices across channels to better respond to changing habits
Improved detection of risky behaviors and more effective player support mechanisms
Exclusive advantages and services that create a more engaging and responsible gaming experience

Management has positioned FDJ & Moi as a strategic enabler for the company's digital ambitions, with plans to leverage the program's data insights to inform future product development and marketing strategies. The initiative aligns with the planned October 2025 launch of the phygital game "Destination Collection," which will be integrated with the FDJ & Moi program to encourage player identification.

Strategic Account Separation and Platform Development

In early February 2025, FDJ United completed the separation of player accounts between lottery under exclusive rights and betting/gaming open to competition in France. This strategic separation represents a critical milestone in the company's digital transformation journey, preparing the ground for the planned merger of Parions Sport en Ligne and ZEturf by mid-2025.

The account separation initiative demonstrates management's commitment to creating a more structured digital ecosystem that can support both regulated lottery operations and competitive betting/gaming activities while maintaining appropriate compliance boundaries. This development is particularly significant as it enables more targeted digital strategies for each business segment while maintaining an integrated customer experience.

Online Growth Performance

The effectiveness of FDJ United's digital transformation efforts is reflected in the strong online performance in Q1 2025:

Online lottery revenue increased by 14% year-on-year to €79 million, now representing 15% of total lottery revenue (up from 14% in Q1 2024)
The company recorded solid growth in active online players across its betting and gaming portfolio, with a 5% increase compared to Q4 2024 and nearly 10% year-on-year
Euromillions jackpot events drove significant new player acquisition, with more than 300,000 new players recruited in a single week in March 2025

Management highlighted that these digital growth trends are expected to continue, with recent player acquisitions fuelling online momentum in the coming months. The company's ability to leverage high-profile events like the Euromillions €250 million jackpot for digital player recruitment demonstrates the effectiveness of its online growth strategy.

These digital transformation initiatives collectively support FDJ United's ambition to build a more integrated, data-driven gaming experience while maintaining its commitment to responsible gaming principles. As these efforts mature throughout 2025, they are expected to drive further digital penetration across the company's product portfolio and strengthen its competitive position in the European gaming market.

Integration of Kindred's Technology and Products

The first quarter of 2025 marked significant progress in FDJ United's integration of Kindred's technology platforms and products, with several key milestones achieved as part of the company's post-acquisition strategy. Management's commentary highlighted both achievements and challenges in this complex integration process, which remains a central focus following the successful acquisition completed in late 2024.

Integration Milestones and Platform Migrations

In Q1 2025, FDJ United successfully executed two critical platform migrations. In early March, the company completed the migration of 32Red in the UK to the internal Kindred Player Account Management (PAM) system and sports betting platform. This migration represents a significant technical achievement and aligns with management's strategy to consolidate operations on unified proprietary platforms.

Earlier in the quarter, in February 2025, the company finalized the separation of player accounts between lottery under exclusive rights and betting/gaming open to competition in France. This technical separation prepares the ground for the planned mid-2025 merger of Parions Sport en Ligne and ZEturf, creating a more integrated competitive offering in the French market.

Synergies and Optimisation Opportunities

Management's Q1 commentary revealed that the integration process has identified additional synergies and cost optimisation opportunities beyond those initially projected. The company now expects to achieve more than €50 million in additional synergies and cost optimisations, with gradual implementation through 2027. These benefits are expected to come from several areas:

Corporate operating model efficiencies
Media and marketing mutualization
Online betting and gaming platform consolidation
Procurement synergies

The platform assessment phase has been completed, confirming the technical feasibility of the integration roadmap. This assessment validated management's strategy of transitioning to a unified platform architecture across all operations.

Integration Challenges and Market Impact

The integration process has not been without challenges. In Q1 2025, the Netherlands market saw a 41% year-on-year decrease in revenue, while the UK market experienced a 27% decline. While these declines were primarily attributed to regulatory measures and unfavourable comparison bases, management acknowledged that maintaining business continuity during integration in these complex multi-jurisdictional markets presents ongoing challenges.

Future Integration Roadmap

Looking ahead, management outlined several key integration priorities for the remainder of 2025:

Continuing the rollout of the Kindred Sportsbook Platform (KSP) across multiple markets
Completing the merger of online betting operations in France by mid-2025
Further implementing the new organisational structure to support the integrated business
Executing additional synergy and cost optimisation initiatives

The integration roadmap maintains the target of full KSP deployment by 2026, with the ultimate goal of operating on a single platform architecture that will provide competitive advantages across European markets.

*This analysis is based on a synthesis of FDJ United’s most recent regulatory filings and corporate communications, including:

Earnings Presentations and Reports (April 2025): For official financial data, segment performance, and technology-driven synergy targets following the Kindred integration.
Earnings Call and Trading Statement Transcripts (March–April 2025): For detailed management insights on strategic technology initiatives, Kindred Sportsbook Platform (KSP) rollout, unified platform architecture objectives, product pipeline, digital transformation initiatives including FDJ & Moi, and operational efficiency metrics.
Press Releases (January–April 2025): Covering product launches such as new lottery instant games, Euromillions jackpot performance, omnichannel program "FDJ & Moi," market-specific regulatory impacts, and ongoing integration milestones related to the Kindred acquisition.
Investor and Analyst Presentations (November 2024, March 2025): For strategic details around platform integration roadmaps, projected synergies, long-term technology infrastructure plans, and competitive positioning within European markets.
Interim Reports, Director’s Statements, and Additional Regulatory Filings (November 2024–April 2025): Providing context on regulatory compliance, market-specific challenges, and the strategic separation of player accounts to support the upcoming merger of online betting operations in France.

Disclaimer: The information provided in this article is for informational purposes only and should not be interpreted as financial advice. The opinions and analyses expressed herein are the author's own and do not represent the views of any financial institutions. We strongly advise conducting your own research or consulting with a qualified professional before making any financial decisions. The author and the publication assume no responsibility for any losses or damages arising from the use of this information.