Key Takeaways
- FDJ United confirms commitment to UK market with Unibet brand despite Kindred UK gross gaming revenue falling 24.1% in first quarter
- Remote gaming duty in the UK almost doubled from 21% to 40% of GGR in April, creating additional financial challenges
- Group-wide GGR increased 1% to €2.175 billion, while online betting and gaming revenue declined 8%
- Gaming chief Pascal Chaffard identifies departmental silos as main obstacle and introduces collaboration reforms
- Company anticipates UK recovery within “some quarters” instead of multiple years
French gambling operator FDJ United has reaffirmed its commitment to maintaining the Unibet brand in the British market, despite confronting declining revenues and substantial tax increases.
During FDJ’s first quarter 2025 earnings call on April 22, Pascal Chaffard, the company’s newly appointed betting and gaming chief, addressed the strategic direction for the struggling UK operation.
The gambling group disclosed that Kindred UK gross gaming revenue plummeted 24.1% during the opening quarter. This downturn coincided with the British government’s decision to increase remote gaming duty from 21% to 40% of GGR, taking effect in April 2026.
Challenges also emerged in the Dutch market, where recent tax increases have similarly impacted performance.
Overall group GGR for the quarter climbed 1% to reach €2.175 billion. However, total revenue across the organization decreased 3% to €895 million.
Digital Wagering Division Reports Setbacks
FDJ’s online betting and gaming segment, primarily consisting of Kindred operations, experienced a 1% decline in GGR and an 8% drop in revenue throughout the quarter.
Excluding performance data from the UK and Netherlands markets, the results showed improvement. The online betting and gaming division registered 6% GGR growth, with revenue declining only 1%.
Chaffard, who recently transitioned from the CFO position, now spearheads a strategic overhaul of the digital betting and gaming operations. When directly questioned about potentially exiting the British market, he firmly rejected the notion.
He informed analysts that while Unibet’s UK market share remains in the low single digits, the operation continues generating profits.
“We don’t have any intention to withdraw from the UK,” Chaffard said. “The point is that we have some problems to solve.”
He emphasized that rival operators have successfully expanded while maintaining compliance with British regulatory requirements. “We are not less smart than them,” he stated.
Chaffard Identifies Cross-Department Coordination as Critical Solution
Chaffard pinpointed insufficient coordination among departments as a fundamental challenge hampering the UK operation’s performance.
He explained that marketing, product development, responsible gaming, and anti-money laundering divisions had been functioning independently. Each unit pursued its own objectives without meaningful cross-functional collaboration.
In its Q1 earnings report, FDJ announced the establishment of “targeted task forces” in both the UK and Netherlands markets to enhance interdepartmental collaboration.
“What I’ve done is to take all the specialists and lock them in the same room,” Chaffard told analysts. He emphasized that various business components are “totally linked.”
Chaffard characterized the UK difficulties as neither fundamental nor structural. He framed them as challenges related to team collaboration and implementation methodology.
He assured analysts the recovery timeline would not extend over years. Rather, he anticipates visible improvements within “some quarters.”
“There is absolutely no question of getting out of the UK,” he said. “The top priority is to fix this problem.”
FDJ indicated plans to maintain compliance investments while developing strategies to restore UK business growth in upcoming quarters.
