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FDJ United is reviewing its online betting and gaming operations and non-core assets after higher gambling taxes across Europe weighed on its first-half earnings.
The company said the review aims to stabilise gross gaming revenue (GGR), optimise resource allocation, and mitigate the impact of tax increases in several jurisdictions. It is considering potential market exits for parts of its online betting and gaming business, alongside possible divestments of non-core assets.
“The group’s performance in the first half of the year continued to be impacted by increased taxes,” President and CEO Stéphane Pallez said.
Group GGR fell 1.3% year-on-year, whilst net revenue declined 4.5% as higher tax rates weighed on earnings. EBITDA dropped to €404 million (US$465.77 million) from €441 million a year earlier, whilst adjusted net profit fell 19% to €180 million.
Pallez also cited exceptional heatwaves in France, which reduced customer traffic at retail points of sale.
The strategic review covers FDJ United’s online betting and gaming business, which includes operations inherited through its €2.45 billion (US$2.82 billion) acquisition of Kindred Group in October 2024. The business spans the UK, the Netherlands, Scandinavia, Italy and other markets where Kindred holds licences, including Australia and Ontario through the Unibet brand.
Tax increases had the biggest impact on the online betting and gaming division. Excluding the UK and the Netherlands, GGR for the segment rose 6.6%, whilst net revenue increased 0.6%.
However, tax hikes in France, the UK, the Netherlands and Romania reduced revenue by nearly €24 million (US$27.67 million), contributing to a 7.4% decline in net revenue to €431 million.
The company highlighted ongoing challenges in both the UK and the Netherlands but indicated that recovery efforts are underway rather than signalling immediate exits from those markets.
In the Netherlands, the year-on-year decline in GGR improved from 15% in the first quarter to 4.1% in the second quarter. In the UK, FDJ said an ongoing turnaround plan is expected to begin delivering results by the end of 2026 despite higher remote gaming taxes.
FDJ provided few details on its UK operations amid the rising tax pressures. The UK’s remote gaming duty increased from 21% to 40% in April 2026, whilst the remote betting tax is set to rise from 15% to 25% in 2027.
The group added that its new online betting and gaming management team is focused on restoring performance in the UK and the Netherlands through targeted marketing investments and improvements to the player experience.
The company is also reviewing potential divestments of non-core assets within its payments and services business, although it did not identify specific assets. The unit includes Aleda, Bimedia and L’Addition, which were acquired before FDJ completed its acquisition of Kindred.
The payments and services business generated €30 million (US$34.59 million) in revenue in the first half and recorded a €3 million (US$3.46 million) EBITDA loss. By comparison, the online betting and gaming division generated €702 million (US$809.33 million) in GGR, whilst the lottery and retail sports betting businesses remained FDJ’s largest segments with revenue of €3.43 billion (US$3.95 billion) and €1.24 billion (US$1.43 billion), respectively.