FDJ United becomes latest casualty of rising gambling taxes across Europe

(AsiaGameHub) –   European gambling tax systems have prevented FDJ United from seeing any meaningful top-line revenue growth in Q1 2026, according to the French gaming behemoth.

In the January-March period, even though gross gaming revenue (GGR) reached €2.1 billion (a 1% year-on-year increase), FDJ United noted its revenue fell 3% to €895 million—due to €24 million in gaming tax deductions—with an extra €90 million projected to affect its full-year 2026 results.

Breaking down performance by segment, revenue decreased year-over-year (YoY) across all business lines except international lottery. This segment was the sole product to post growth—an impressive 7% YoY—totaling €41 million (compared to €38 million in Q1 2025).

Online betting and gaming suffered the most significant decline, falling 7.7% YoY to €213 million (from €231 million in Q1 2025). French lottery and retail sports betting generated €627 million, a 2.1% drop from the prior corresponding period’s (pcp) €640 million. The Payment and Services segment decreased 7.2% YoY to €14 million (pcp: €16 million).

It’s worth noting that France currently has Europe’s strictest gambling tax framework, which tightened further in July 2025 with the implementation of the updated Social Security Financing Act.

This adjustment raised public levy rates for online sports betting from 54.9% to 59.3% of GGR. Point-of-sale public levies increased from 41.1% to 42.1% of GGR, while online poker levies jumped from 0.2% to 10% of GGR.

Furthermore, public levies for Loto and Euromillions lottery games rose from 68% to 69% of GGR, and draw games and instant games experienced a hike from 55.5% to 56.5% of GGR.

In the Netherlands, the second phase of a planned two-step tax increase pushed gambling taxes to 37.8% of GGR in January, up from the prior 34.2%. For the Dutch market in Q1, FDJ United’s GGR fell by 14.5% and its revenue decreased by 19.9%.

In the UK, where FDJ United runs Unibet and 32red, the Remote Gaming Duty was drastically raised from 21% to 40% at the beginning of April. This is expected to further disrupt the company’s H1 2026 results, which are scheduled to be released on July 29.

Even prior to this tax hike, FDJ United’s UK revenue had already declined by 24.1% YoY in the January-March period.

To work toward its FY26 targets—including a recurring EBITDA margin of 23-24%, better annual performance in online betting and gaming, and a return to GGR growth in the second half of the year—FDJ United has named Dan Lévy as its new Chief Financial Officer, starting May 18.

Stéphane Pallez, CEO of FDJ United, recapped the company’s Q1 performance and laid out its key priorities moving ahead.

She stated: “Amid an environment still impacted by tax hikes and stricter gaming regulations, the Group is ramping up its focus on operational efficiency, synergies, and financial prudence. Our goal is to return to sustainable, value-driven growth starting in the second half of the year, for the benefit of all our stakeholders.”