FDJ United will not exit the UK market despite Kindred revenue falling 24.1% in Q1 2026, with incoming betting and gaming chief Pascal Chaffard confirming the group intends to fix its operational structure rather than retreat from the market.
The commitment came during FDJ United’s Q1 2026 earnings call on 22 April, where group GGR rose 1% year-on-year to €2.175 billion but revenue fell 3% to €895 million, weighed down by €24 million in gaming tax increases across multiple markets.
UK and Netherlands Drag on Online Unit
The online betting and gaming business unit — made up of Kindred’s operations — reported GGR down 1% to €342 million and revenue down 8% to €213 million. Strip out the UK and the Netherlands, and the picture shifts: GGR was up 6.3% and revenue was broadly flat, down 1.1%.
UK revenue declined 24.1% in the quarter, driven by a combination of regulatory pressure and the continued impact of UKGC compliance requirements on player acquisition and retention. The Netherlands posted a 19.9% revenue decline, which FDJ described as a marked improvement on the 42.1% fall recorded in FY2025.
The Q1 figures do not yet reflect the full impact of the UK’s remote gaming duty increase from 21% to 40%, which took effect on 1 April — the first day of Q2. FDJ now estimates total additional gaming tax costs of approximately €90 million across 2026.
“Our market share in the UK is in the region of low single digit. The situation in the UK is that we are profitable. So we don’t have any intention to withdraw from the UK.”
That was Chaffard’s response when analysts asked directly whether an exit was on the table. He added that some competitors had successfully navigated the same compliance requirements and that FDJ was capable of doing the same.
A Structural Fix, Not a Strategic Pivot
Chaffard, who transitioned from CFO to lead the online betting and gaming turnaround, said the unit’s underperformance in the UK stemmed from siloed working practices rather than a structural flaw in the market position. FDJ has already announced plans for “targeted task forces” in the UK and the Netherlands to improve cross-functional coordination.
“We had some marketing initiatives from the marketing team, some product initiatives from the product team, some RG requirements from the responsible gaming team, some AML requirements from the AML team, not working really around the same table to find the best way to implement all that and to make it globally efficient. What I’ve done is to take all the specialists and lock them in the same room.”
Chaffard framed the turnaround as a matter of quarters, not years, telling analysts the underlying problems were operational rather than structural.
France Consolidation and Full-Year Guidance
On the French side, FDJ completed the migration of its ParionsSport en ligne business into Unibet by end of Q1, consolidating its online sports betting and poker activities under a single brand ahead of the 2026 FIFA World Cup. Players on both platforms now access a unified account covering sports, poker, casino, and horse-race betting via ZEturf.
French lottery and retail sports betting GGR was stable at €1.74 billion, with revenue down 2% to €627 million. The quarter was affected by a high payout ratio in retail sports betting, fewer long-cycle draw events, and less attractive fixtures towards the end of March. Online lottery revenue edged up 1% to €81 million, representing 15.5% of total lottery revenue.
Chairwoman and CEO Stéphane Pallez maintained a positive outlook for the second half of the year.
“In an environment still affected by the impact of tax increases and tighter regulations on gaming, the group is stepping up its efforts in operational efficiency, synergies, and financial discipline, with the aim of returning to sustainable, value-creating growth from the second half of the year onwards, for the benefit of all its stakeholders.”
For the full year, FDJ now expects a slight increase in GGR and a slight decline in revenue. The recurring EBITDA margin target has been adjusted to between 23% and 24%, down from the previous guidance of 24.5%, with performance weighted toward the second half given the tax comparison base.
The UK remote gaming duty increase to 40% — among the topics covered in our detailed breakdown of UK gambling tax changes — continues to reshape operator strategies across the market. Flutter Entertainment estimated a £540 million impact from the same changes, as we reported in our Flutter tax impact analysis.
Source: FDJ United
