FDJ United, a prominent gambling operator, has announced its strategy to revive its business performance in the United Kingdom and the Netherlands. This initiative follows the impact of increased gaming taxes that have adversely affected the company’s first-quarter results in 2026. The company’s gross gaming revenue (GGR) saw a marginal increase of 1% year-on-year, reaching €2.175 billion, while overall revenue dropped by 3% to €895 million, largely due to a €24 million impact from elevated gaming taxes. This development is crucial as it highlights the broader regulatory and tax challenges that gaming operators face in these markets.
The company’s online betting and gaming operations, primarily driven by its Kindred brand, experienced a decline in GGR by 1% to €342 million, and a decrease in revenue by 8% to €213 million. However, excluding the UK and the Netherlands—both of which raised their gambling tax rates in 2025 and 2026—FDJ’s GGR in its online division actually grew by 6%, with revenue dropping only slightly by 1%. Revenue from the UK for Kindred fell sharply by 24.1%, while in the Netherlands, it declined by 19.9%. Notably, the decline in the Netherlands showed improvement compared to the 42.1% drop reported in FY2025. These figures underline the significant impact that tax policies can have on operators in the gambling sector.
In a move to enhance its market positions, FDJ has upgraded its betting platform. In February, Pascal Chaffard transitioned from his role as Chief Financial Officer to head of the online gaming and betting unit, succeeding Nils Andén, who departed for other ventures. Recently, FDJ appointed Dan Lévy, previously with Ipsos, as the new CFO. The company emphasized that its refreshed management team is dedicated to revamping its online betting and gaming segment, with a strong focus on the UK and Netherlands markets.
The ongoing tax hikes have prompted FDJ to adjust its financial outlook for the full year 2026. The firm reported declines across most of its business units for FY2025, attributing significant challenges to the increased tax burdens. FDJ’s Chairwoman and CEO, Stéphane Pallez, acknowledged that the group is striving for greater operational efficiency and financial rigor to return to sustainable growth in the latter half of the year, despite ongoing regulatory pressures.
In light of the Q1 performance, FDJ now anticipates a slight increase in GGR for 2026 but foresees a small revenue decline due to additional gaming tax increases projected to total approximately €90 million. The company expects its recurring EBITDA margin to range between 23% and 24%, a slight reduction from its previous target of 24.5%.
Within France, FDJ’s lottery and retail sports betting unit experienced mixed results in Q1. The unit’s GGR remained stable at €1.74 billion, but revenue fell 2% to €627 million, partly due to an additional €15 million tax impact. The company attributed these results to temporary factors at the end of the quarter, such as less appealing sports events and a high payout ratio in retail sports betting. Point-of-sale revenue in France also decreased by 3% to €546 million, though online lottery revenue saw a modest increase of 1%, reaching €81 million.
Despite these mixed outcomes, FDJ remains optimistic about its French operations for the year, anticipating overall revenue growth as it overcomes the temporary setbacks encountered in the first quarter. The focus now turns to implementing strategic adjustments and responding to market challenges, with an emphasis on achieving steady growth in the second half of the year. The company aims to navigate the complex regulatory landscape and adapt to the evolving tax environment, ensuring compliance while seeking opportunities for market expansion and improved performance.
4.3/5
