FDJ United launches strategic review after Kindred acquisition and tax pressure

FDJ United has announced a strategic review of its online betting and gaming division following the completion of its €2.45 billion acquisition of Kindred Group. The move comes as the company responds to increasing gambling taxation across several regulated markets and seeks to improve the long-term performance of its online business.

The review represents one of the first major strategic initiatives since the acquisition brought Kindred Group into the FDJ United portfolio. By assessing the profitability and long-term potential of individual markets, the operator aims to strengthen operational efficiency while protecting shareholder value against a more challenging regulatory and fiscal environment.

The company confirmed that the assessment will cover several key jurisdictions where Kindred currently operates and may ultimately result in market exits, asset disposals or changes to investment priorities.

First-half performance reflects challenging market conditions

FDJ United reported that its financial performance during the first half of 2026 was affected by several external factors. Higher gambling taxes across multiple European jurisdictions combined with exceptional weather conditions in France placed significant pressure on revenue and profitability.

According to the company's financial results, gross gaming revenue declined by 1.3 percent compared with the same period last year. Net revenue fell by 4.5 percent while EBITDA decreased from €441 million during the first half of 2025 to €404 million during the first six months of 2026.

Adjusted net profit also declined significantly, falling 19 percent from €222 million to €180 million.

The company explained that increased taxation represented the most significant challenge across its business portfolio. In addition, unusually severe heatwaves across France reduced customer visits to retail locations, affecting lottery and retail betting activity during the period.

Stéphane Pallez, President and Chief Executive Officer of FDJ United, acknowledged the difficult trading conditions.

“The group’s performance in the first half of the year continued to be impacted by increased taxes.”

The operator stated that taxation changes introduced across several regulated markets had materially reduced profitability despite continued customer activity and ongoing investment in its brands.

Acquisition of Kindred reshaped the business

The strategic review follows the successful completion of FDJ United's acquisition of Kindred Group in October 2024 for approximately €2.45 billion.

The transaction significantly transformed the company's international footprint by combining FDJ's established lottery and retail betting operations with Kindred's online gambling business.

As part of the acquisition, FDJ United became the owner of several internationally recognised gaming brands including Unibet and 32Red. These brands operate across numerous regulated markets and have established customer bases throughout Europe and other jurisdictions.

The acquisition also expanded FDJ United's presence in online sports betting, casino gaming and poker while increasing its exposure to markets where gambling tax policies have become increasingly restrictive.

Management believes the combination creates opportunities for operational synergies, technology sharing and greater economies of scale. However, recent regulatory developments have also highlighted the importance of focusing investment on markets capable of delivering sustainable returns.

Review focuses on major regulated markets

The market review will examine the online betting and gaming business across several important jurisdictions including the United Kingdom, the Netherlands, Scandinavia, Italy and additional regulated European markets where Kindred currently holds licences.

FDJ United stated that it is evaluating each jurisdiction individually to determine whether continued investment aligns with the company's long-term strategic objectives.

The review will also include international operations beyond Europe. Unibet currently maintains regulated operations in Ontario and Australia, both of which will form part of the wider assessment regarding future resource allocation.

Management explained that the objective is not simply to reduce costs but to ensure capital is directed towards markets offering attractive long-term growth opportunities alongside stable regulatory environments.

This approach reflects a broader industry trend in which major gambling operators increasingly prioritise profitability over rapid geographic expansion.

Gambling taxes continue to reshape the industry

The financial report demonstrates the growing impact of gambling taxation across Europe's regulated gambling sector.

FDJ United reported that cumulative tax increases introduced in France, the United Kingdom, the Netherlands and Romania reduced revenue by nearly €24 million during the reporting period.

These higher tax burdens resulted in net revenue within the online betting and gaming segment falling 7.4 percent to €431 million.

Despite these challenges, performance outside the United Kingdom and the Netherlands remained comparatively resilient.

Excluding those two markets, gross gaming revenue increased by 6.6 percent while net revenue recorded modest growth of 0.6 percent.

The figures indicate that operational performance remains healthy in several jurisdictions despite increasing regulatory costs.

Across Europe, governments have increasingly reviewed gambling taxation as part of wider public finance measures. While these changes generate additional government revenue, operators continue adapting their business models to maintain sustainable profitability within regulated markets.

United Kingdom and Netherlands remain key priorities

The United Kingdom and the Netherlands continue to represent two of the most closely monitored markets within FDJ United's online portfolio.

In the Netherlands, trading conditions improved during the second quarter of 2026. Gross gaming revenue declined by 15 percent year on year during the first quarter before improving to a 4.1 percent decline during the second quarter.

Although the business has not yet returned to growth, the improved performance suggests that recent operational initiatives are beginning to produce positive results.

The United Kingdom presents a different challenge.

Remote Gaming Duty increased from 21 percent to 40 percent in April 2026, significantly increasing operating costs for online casino businesses. In addition, Remote Betting Duty is scheduled to increase from 15 percent to 25 percent during 2027.

These fiscal changes have materially altered the economics of operating within one of Europe's largest regulated gambling markets.

FDJ United stated that its new management team is implementing a comprehensive recovery strategy designed to strengthen performance across both jurisdictions.

Key initiatives include increased marketing investment, product improvements and enhancements to the overall player experience.

The company expects these measures to begin generating meaningful results before the end of 2026.

Potential market exits and asset disposals

As part of the review, FDJ United confirmed that it is prepared to consider withdrawing from selected markets where long-term profitability appears unlikely.

The company also indicated that certain business assets could be sold if they are no longer considered strategically important.

The assessment extends beyond online gambling operations.

FDJ United confirmed that non-core businesses within its payments and services division are also under review.

Examples include Aleda, Bimedia and L'Addition, which may be evaluated for potential disposal or restructuring.

During the first half of 2026, the payments and services division generated €30 million in revenue while recording an EBITDA loss of €3 million.

By comparison, the company's lottery business generated €3.43 billion in revenue during the same period. Retail sports betting contributed €1.24 billion while online betting and gaming produced €702 million in gross gaming revenue.

These figures demonstrate the relative importance of FDJ United's core gaming operations compared with its smaller non-core business activities.

Long-term strategy remains focused on sustainable growth

While the current review reflects short-term financial pressures, it also illustrates FDJ United's broader commitment to disciplined capital allocation and long-term value creation.

Rather than maintaining operations in every regulated market, the company appears increasingly focused on jurisdictions that offer stable regulation, predictable taxation and attractive long-term growth prospects.

Industry analysts have observed similar strategic shifts among major international gambling operators as rising compliance costs and taxation reshape competitive dynamics throughout Europe.

For FDJ United, integrating Kindred Group successfully while improving profitability across its expanded online portfolio will remain one of management's most important priorities over the coming years.

The review is expected to provide greater clarity regarding the future structure of the group's international operations once it has been completed.

Conclusion

FDJ United has entered an important stage in its post-acquisition strategy as it evaluates the future direction of its online betting and gaming business. Rising gambling taxes, changing regulatory conditions and evolving market economics have prompted the company to reassess where it can generate sustainable long-term returns.

Although the first half of 2026 produced weaker financial results, the acquisition of Kindred Group has given FDJ United a broader international presence and a portfolio of established online brands with significant growth potential. By reviewing individual markets, improving operational efficiency and considering selective asset disposals, the company is positioning itself to respond proactively to an increasingly complex regulatory landscape.

The outcome of the review is likely to shape FDJ United's international strategy for years to come while demonstrating how major operators continue adapting to the changing realities of the regulated gambling industry.

FAQs

What is FDJ United reviewing within its business?
FDJ United is reviewing its online betting and gaming division to improve profitability and respond to higher gambling taxes across several regulated markets.

Why did FDJ United acquire Kindred Group?
The acquisition expanded FDJ United's international online gambling business by adding established brands including Unibet and 32Red while strengthening its presence in regulated markets.

How much did FDJ United pay for Kindred Group?
FDJ United completed the acquisition of Kindred Group for approximately €2.45 billion in October 2024.

Which countries are included in the strategic review?
The review covers the United Kingdom, the Netherlands, Scandinavia, Italy and other regulated markets where Kindred Group holds operating licences.

Could FDJ United leave certain markets?
Yes. The company has confirmed it is considering withdrawing from selected markets if they no longer meet its long-term strategic objectives.

How did higher gambling taxes affect the company?
Higher taxes reduced profitability and contributed to weaker net revenue across several regulated markets including France, the United Kingdom, the Netherlands and Romania.

What impact did the French heatwaves have?
Exceptional heatwaves reduced customer visits to retail outlets in France which negatively affected lottery and retail betting sales.

What brands are now part of FDJ United?
Following the acquisition of Kindred Group, FDJ United owns brands including Unibet and 32Red.

Is the company reviewing businesses outside gambling?
Yes. FDJ United is also evaluating several non-core businesses within its payments and services division including Aleda, Bimedia and L'Addition.

When does FDJ United expect improvements?
The company expects its ongoing action plan and operational improvements to begin delivering results before the end of 2026.