Regulatory body in Sweden gives approval to FDJ's acquisition bid for Kindred Group
FDJ's Acquisition of Kindred Group: Progress and Regulatory Challenges
The acquisition of Kindred Group by FDJ United is moving forward, with the integration well underway and on track for completion by mid-2025. Notably, Sweden's financial authority, the Swedish Financial Market Supervisory Authority (SFSA), has approved FDJ's offer document, paving the way for the transaction.
However, the acquisition faces significant regulatory scrutiny in France, particularly concerning marketing expenses and the mitigation of gambling risks. The French gambling regulator, ANJ, has raised concerns about increased financial incentives for customer acquisition and retention, which could lead to intensified gambling behaviours and risks of excessive or pathological gambling, especially among vulnerable groups such as young adults (18-25) and at-risk players.
French senators have also questioned the continued public interest in FDJ United's monopoly status post-Kindred deal, highlighting potential conflicts in regulatory objectives such as player protection and market competition.
Despite these challenges, FDJ United has reported strong first-half results in 2025, describing the year as a "transition year" focused on integrating Kindred. The group reiterated its 2025 revenue and profitability guidance, with a recurring EBITDA margin expected above 24% and a stable revenue profile versus 2024 pro forma. The success of the employee share ownership plan also reflects positive internal momentum during the integration.
In summary, the acquisition of Kindred Group by FDJ United is progressing, with Sweden’s financial authority approval facilitating the process. The Kindred integration is progressing well operationally within FDJ United. However, regulatory challenges persist in France, especially concerning marketing expenses and gambling risk mitigation, with ongoing scrutiny by ANJ and parliamentary bodies. FDJ United continues to align financial performance with targets amidst this regulatory and operational transition.
No explicit remaining regulatory hurdles have been publicly announced as settled, but the heightened French regulatory attention suggests continuing oversight and possible conditions or adjustments as the integration proceeds.
- Amidst the ongoing integration of Kindred Group, FDJ United is encountering regulatory challenges, particularly in France, as the French gambling regulator, ANJ, has raised concerns about financial incentives in marketing and gambling risk mitigation.
- As FDJ United continues to align its financial performance with targets during this transition year, it faces significant regulatory scrutiny in France, with the French senate questioning the monopoly status post-Kindred deal and the ANJ raising concerns about marketing expenses and gambling risks.
