The latest set of Q1 operator results underpins a shift in the structure of the UK market that is becoming increasingly unbalanced amidst regulatory reforms.
It comes as a fairly successful period for FDJ United was dragged down by struggles in the Netherlands and the UK.
The operator has now added its voice to calls for UK authorities to do more to fight the growth of the black market and create a competitive market for all operators.
Speaking to investors following the release of the group’s Q1 financial results, Pascal Chaffard, Head of FDJ’s Online Betting and Gaming Business Unit, emphasised that any tax increases or regulatory changes must be met with an assurance that there is a ‘level playing field’ for all operators.
He said: “What we fear is the development of offshore offering. We have flagged this clearly to the UK Gambling Commission and government, and they have said that they understand the point and will give more capacity to the UKGC to fight [the black market].
“But we are not completely sure that it’s fully done, and it is something that we will continue to work on. We cannot have more stringent regulation and tax levels and not have a good fight against illegal actors.”
UK Chancellor Rachel Reeves confirmed in November 2025 an increase in Remote Gaming Duty to 40%, which came into effect on 1 April this year. Meanwhile, general betting duty for remote betting will increase to 25% on 1 April 2027.
At the same time, the government allocated £26m for the UKGC to fight the growth of the black market. However, industry stakeholders have warned that this figure is a ‘drop in the ocean’ given the spending power of the groups behind black market operators.
Despite this, Chaffard emphasised that it is possible to target the online black market, and this fact has been ‘explained in detail’ to both the UKGC and UK government.
“At the end of the day, it’s okay to have more taxes, it’s okay to have more objectives for protecting players, but it’s not okay to have level playing that is the same for everybody,” he added.
Chaffard admitted that the UK market ‘remains difficult’ for FDJ, where it operates Unibet and 32Red following its acquisition of Kindred in 2024.
In particular, he told investors that FDJ ‘underestimated the difficulty of fine-tuning compliance rules’, although no specific details were revealed in terms of what rules the company is having most difficulty with.
Despite this, and a more than 20% YoY decrease in UK revenue in Q1, the UK remains profitable for FDJ, and Chaffard expressed hope that it can take advantage of ‘smaller and weaker’ operators that may fall by the wayside amid the tax hikes as the market consolidates.
“The main problem that we have is not the number of active players, it’s the drop in the average revenue per user,” said Chaffard, as he quelled concerns that FDJ would withdraw from the market.
Unibet and 32Red are both strong mid-tier operators; however, the consternation that is had from operators of this stature around the UK market is not consistently replicated by those above them.
We have seen Flutter and Entain both take an energised approach to the new UK landscape, even hinting at further investment in the market.
This trajectory should cause concern for policymakers as the market as a whole becomes increasingly at risk of consolidation. A decrease in the scale of operators in the market creates a significant void for the black market to capitalise.
The slump in the UK market and challenges for operators is not out of the blue, having been widely predicted amidst market challenges and further accelerated by Labour tax hikes.
At the end of last year, the independent gambling industry think tank BetterGambling revealed a report that predicts that by 2027, over 800 casinos will be forced to exit the market.
The report warned that as regulatory frameworks tightened, the market would no longer be economically viable for operators that don’t occupy the tier one space, as referenced by Chaffard.
Reviewer at BetterGambling, Diana Tunsu, warned: “The economics are straightforward. Operators with GGY below £3 million per year are faced with a stark choice: spend significantly on compliance or consider strategic options including withdrawing from the market.”
At the time, the study was easy to dismiss for policymakers seemingly focused on elevating tax levels to eye-watering levels, but the development of the market since then, even in this early stage, indicates we are on a path to a less competitive reality.
European tax changes start to bite
FDJ also highlighted the ongoing impact of tax changes across key European jurisdictions, including France, the Netherlands and Romania.
Across its land-based, lottery and online betting and gaming divisions, FDJ expects to see an impact of approximately €90m euros in 2026.
In July 2025, French authorities implemented small tax increases across lottery, sports betting and online poker.
While the Netherlands and Romania have also increased taxes on online gaming in the last year.
In the Netherlands specifically, Chaffard said the situation is beginning to ‘stabilise’, and it is taking actions to bring ‘some growth’ to its operations in the country.
However, he noted a report from the Dutch regulator that overall market revenue shrank by more than 20% in 2025, highlighting the difficulty of returning to growth in the jurisdiction.
FDJ has laid out plans to turn around its performance in the UK and the Netherlands through targeted task forces, which Chaffard explained involved ensuring that the group’s different departments are not working in silos and collaborate effectively.
Meanwhile, FDJ is also seeking to shift to an ROI-led marketing and generosity strategy, while also streamlining the organisation.
Overall, FDJ United reported a slight growth in gross gaming revenue to €2.18bn. However, the aforementioned tax changes resulted in a 3% year-on-year decrease in revenue to €895m.
