Key Takeaways
- FDJ United commits to maintaining Unibet’s UK presence following 24.1% decline in Kindred UK gross gaming revenue during the first quarter
- Remote gaming duty in the UK set to jump from 21% to 40% of GGR starting April 2026, intensifying financial challenges
- Group-wide GGR increased 1% to reach €2.175 billion, while online betting and gaming revenue decreased 8%
- Gaming chief Pascal Chaffard identifies departmental silos as main obstacle and implements cross-functional collaboration
- Management anticipates UK recovery within several quarters, not years
FDJ United has publicly committed to maintaining its Unibet operations in the United Kingdom, despite confronting revenue challenges and an impending substantial tax hike in the region.
During the company’s first-quarter 2025 earnings presentation on April 22, Pascal Chaffard, FDJ’s newly appointed betting and gaming division leader, addressed the strategic position.
The French gambling conglomerate disclosed a 24.1% decrease in Kindred UK gross gaming revenue throughout the opening quarter. This downturn coincides with the UK government’s decision to increase remote gaming duty from 21% to 40% of GGR, taking effect in April 2026.
Performance struggles extended to the Netherlands, where recent taxation increases have similarly impacted operations.
Overall group GGR for the first quarter climbed 1% to €2.175 billion. Meanwhile, consolidated revenue across all operations declined 3% to €895 million.
Digital Betting Operations Experience Revenue Pressure
The digital betting and gaming segment, encompassing FDJ’s Kindred holdings, recorded a 1% drop in GGR and an 8% revenue decline throughout the period.
Excluding performance data from the UK and Netherlands markets, underlying trends appeared more favorable. Online betting and gaming GGR advanced 6%, with revenue declining only 1%.
Chaffard transitioned from his previous chief financial officer position to oversee a comprehensive restructuring of the online betting and gaming operations. During the analyst call, he was asked directly about potential UK market withdrawal.
He explained that while Unibet’s UK market share remains in the low single digits, the operation continues to generate profit.
“We don’t have any intention to withdraw from the UK,” Chaffard stated. “The point is that we have some problems to solve.”
He noted that rival operators have successfully expanded while maintaining full compliance with UK regulatory requirements. “We are not less smart than them,” he remarked.
Chaffard Identifies Cross-Department Coordination as Critical Solution
Chaffard pinpointed insufficient integration between organizational units as a fundamental challenge constraining UK business performance.
He explained that marketing, product development, responsible gaming, and anti-money laundering divisions had operated in isolation. Each unit pursued independent objectives without unified strategic alignment.
FDJ indicated in its Q1 report that it has already established “targeted task forces” in both the UK and Netherlands to enhance cross-functional collaboration.
“What I’ve done is to take all the specialists and lock them in the same room,” Chaffard explained to analysts. He emphasized that various business components are “totally linked.”
Chaffard clarified that the UK challenges are neither fundamental nor systemic. He characterized them as coordination issues affecting how teams collaborate and execute initiatives.
He assured analysts the recovery timeline would not extend to years. Rather, he anticipates visible improvements within “some quarters.”
“There is absolutely no question of getting out of the UK,” he emphasized. “The top priority is to fix this problem.”
FDJ confirmed its intention to maintain compliance investments while developing strategies to restore UK business growth in upcoming quarters.
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