FDJ United is grappling with a challenging environment in its online betting and gaming operations, as increased taxes and declining gross gaming revenue (GGR) in the UK and Netherlands weigh heavily on the group’s performance. The company has reaffirmed its commitment to financial discipline as it navigates these headwinds.
Tax Increases Hit Revenue
Group Chief Financial Officer Dan Levy revealed that tax hikes across several European markets have led FDJ United to pay an additional €34 million in taxes during the first nine months of the year. As a result, despite flat GGR of €1 billion, the group's revenue fell to €619 million, marking an 8.2% decrease compared to the previous year.
The UK market has been particularly affected, with GGR dropping by nearly 25% year-on-year through September. In the Netherlands, GGR also declined by 8.6% over the same period. Levy pointed to the near doubling of the UK's Remote Gaming Duty (RGD) to 40% as a significant factor impacting profitability, although he maintained that the UK remains a profitable market for FDJ United.
Strategic Response and Market Focus
To address these challenges, FDJ United has placed the UK at the center of its new online betting and gaming segment management team's action plan. The strategy involves optimizing marketing and customer loyalty investments to drive growth and reduce costs. The company is also planning to migrate most of its markets to its proprietary sports betting platform, a move already completed in France.
Levy emphasized a shift in focus toward recreational players and a more disciplined approach to marketing, aiming to enhance customer lifetime value and maintain profitability despite market pressures.
Implications for Industry Stakeholders
The difficulties faced by FDJ United underscore the challenges medium-sized operators encounter when competing in mature markets with rising regulatory costs. While larger competitors such as Entain, Flutter, and Super Group have reported revenue gains, FDJ United is prioritizing the preservation of its market position over aggressive expansion. This situation highlights the importance for operators and affiliates to adapt to evolving tax regimes and regulatory landscapes, focusing on efficiency and core customer segments.
Key takeaways
- FDJ United's revenue declined 8.2% year-on-year due to higher taxes and falling GGR in the UK and Netherlands.
- The UK market saw GGR drop by nearly 25%, largely due to increased Remote Gaming Duty.
- The company is focusing on cost optimization and customer value to maintain profitability.
- Industry consolidation and regulatory changes present ongoing challenges for medium-sized operators.
Update (22.10.2026)
FDJ United has reaffirmed its recurring EBITDA margin target of around 23%, attributing this stability to ongoing cost-control initiatives. In response to fiscal pressures in the UK and Netherlands, the company is rolling out specific recovery plans. Additionally, the article highlights that tax-related challenges are influenced by political instability not only in France and the UK but also in the Netherlands and Romania, though no new financial figures have been disclosed for these regions.