FDJ United targets UK turnaround as tax pressures weigh on H1 revenue

FDJ United has reiterated its commitment to improving its UK online gambling business. This comes after higher taxes and weaker lottery performance contributed to a decline in first-half revenue.

The group generated revenue of €1.78 billion during the opening six months of 2026. This was a 4.5% decrease from the same period last year. Gross gaming revenue (GGR) declined by 1.3% to €4.31 billion.

FDJ attributed approximately €52 million of the revenue impact to increased gambling taxes across several important markets. This included the UK, France, Romania and the Netherlands.

However, the company described its overall financial position as robust and said it would continue investing in product development and its wider transformation programme.

“The top priority is to fix this problem.”

UK situation remains difficult

FDJ’s online betting and gaming division, which incorporates the Kindred business acquired in 2024, recorded stable H1 GGR of €702 million. Revenue from the division nevertheless fell 7.4% to €431 million.

Performance was stronger when the UK and Netherlands were excluded. Across its other online markets, GGR increased by 6.6%. Revenue rose by 0.6%.

Although FDJ reported signs of improvement in the Netherlands, it acknowledged that the situation in the UK “remains difficult”.

The company has established targeted task forces covering the UK and Netherlands. These are intended to strengthen collaboration across the enlarged group and improve local performance.

FDJ gaming and betting chief Pascal Chaffard previously ruled out a withdrawal from the UK following the group’s first-quarter results in April. He said resolving the problems would be the company’s priority, although the turnaround could require several quarters.

The latest results also referred to a review of the markets in which the Kindred business operates. This raised questions about whether FDJ’s position on the UK could eventually change.

However, CEO and chairwoman Stéphane Pallez said the review was focused on directing investment towards markets capable of delivering profitable growth. This was rather than preparing for a particular market exit.

Taxes and lottery performance affect results

The group’s French lottery operations also contributed to the weaker half-year performance. Lottery GGR decreased by 2.1% to €2.98 billion. Revenue fell 4% to €1.02 billion.

FDJ blamed the decline partly on fewer and smaller major EuroMillions jackpots compared with 2025. Exceptional heatwaves also reduced footfall at retail points of sale during the second quarter.

Retail sports betting GGR fell 1.1% to €450 million. Associated revenue declined 2.9% to €218 million.

FDJ has subsequently adjusted its expectations for the full financial year. The group now forecasts stable GGR across both its lottery and retail sports betting division and its online betting and gaming operations.

Annual revenue is expected to decline by a low-single-digit percentage. FDJ had previously anticipated modest GGR growth alongside a slight revenue decrease.

Despite the challenging trading conditions, the business reported adjusted net profit of €180 million for H1. Pallez said FDJ would continue optimising how it allocates resources while pursuing sustainable and profitable growth.