Key Takeaways
Contents
- FDJ has committed to maintaining Unibet’s presence in Britain following a 24.1% decline in Kindred UK gross gaming revenue during Q1
- Remote gaming duty in the UK almost doubled from 21% to 40% of GGR starting in April, creating additional financial strain
- Group-wide GGR increased 1% to €2.175 billion, while online betting and gaming revenue decreased 8%
- Gaming chief Pascal Chaffard identified departmental silos as a major issue and is implementing cross-functional collaboration
- The company anticipates UK recovery within several quarters rather than multiple years
FDJ United has publicly committed to maintaining its Unibet operations in the United Kingdom, despite confronting declining revenues and substantial tax increases in the territory.
Pascal Chaffard, the French gaming conglomerate’s newly appointed betting and gaming chief, articulated this position during FDJ’s first quarter 2025 financial results presentation on April 22.
According to FDJ’s quarterly disclosure, Kindred UK gross gaming revenue tumbled 24.1% during the opening three months of the year. This downturn occurred alongside the UK government’s decision to increase remote gaming duty from 21% to 40% of gross gaming revenue, taking effect in April 2026.
The organization encountered similar headwinds in the Netherlands, where recent taxation increases have dampened operational performance.
Consolidated group GGR for the first quarter climbed 1% to reach €2.175 billion. Overall revenue across the enterprise declined 3% to €895 million.
Digital Betting Division Reports Weakness
The digital betting and gaming segment, comprising FDJ’s Kindred business units, experienced a 1% GGR contraction and an 8% revenue reduction throughout the quarter.
Excluding performance from the UK and Dutch markets, operational metrics appeared considerably stronger. Online betting and gaming GGR expanded 6%, while revenue decreased by only 1%.
Chaffard, who recently transitioned from the chief financial officer position, now spearheads a strategic restructuring of the online betting and gaming division. When questioned about potentially withdrawing from the British market, he firmly dismissed such speculation.
He informed financial 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 noted that rival operators have achieved growth while maintaining regulatory compliance in the UK market. “We are not less smart than them,” he remarked.
Chaffard Emphasizes Cross-Department Integration as Primary Solution
Chaffard pinpointed insufficient coordination among business units as a fundamental obstacle impeding UK performance.
He explained that marketing, product development, responsible gaming, and anti-money laundering divisions had been operating independently. Each unit was advancing separate agendas without unified strategic alignment.
FDJ said in its Q1 report that it had established “targeted task forces” in both Britain and the Netherlands to enhance cross-functional collaboration.
“What I’ve done is to take all the specialists and lock them in the same room,” Chaffard told analysts. He said the different elements of the business are “totally linked.”
Chaffard emphasized that the UK challenges are neither fundamental nor deeply rooted. He characterized them as operational inefficiencies related to team coordination and execution.
He assured analysts that remediation would not require years of effort. Rather, he anticipates visible improvements emerging 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 its intention to maintain compliance investments while simultaneously developing strategies to restore UK business growth in subsequent quarters.
