Dutch deposit limits and tax hike impact FDJ United Q1 revenue

FDJ United’s online betting revenues were significantly impacted by tightening regulation in the UK and increased taxes in the Netherlands.

In its Q1 results, published on 15 April, FDJ United reported total gaming revenue (GGR) of €925 million ($1 billion/£791,934), up 30% year-on-year.

However, online betting, through its Kindred business, was down 10% to €231 million in the first three months of the year. This was despite active players increasing 10%.

FDJ United pointed to increased taxation in the Netherlands and stricter regulations in the UK as causing an adverse impact on its earnings.

Notably, online betting and gaming revenue excluding the Netherlands and the United Kingdom was up by almost 8% on the previous year.

Revenue in the Netherlands dropped 41% in Q1, following the implementation of an almost 4% tax increase to 34.2% of GGR. The operator’s revenues were also squeezed by the introduction of deposit limits in the Netherlands.

“We were impacted by increased gaming taxation in the Netherlands, but more importantly, by stricter regulation implementation, both in the UK and the Netherlands,” FDJ United CFO Pascal Chaffard said on the operator’s earnings call yesterday.

“In the Netherlands the largest impact came from the introduction of a new monthly net deposit limit.”

FDJ improving deposit increase request process to mitigate losses

New rules, introduced by the KSA last October, limit players’ net deposits to €700 (£583/$777) within a calendar month. This is reduced further to €300 for gamblers aged between 18 and 25.

“These measures significantly reduced the revenue of licensed operators, but they also led to a sharp drop in the channelisation rate as the market share of unlicensed operators increased in 2024 and now exceeds 50% [in the Netherlands],” FDJ United CFO Chaffard said.

This drop in channelisation and GGR across the Netherlands was also documented by the Dutch gambling regulator in its spring market report, released earlier this week.

But the operator is confident it can return to growth in the market, as it achieved active player growth of 15% during Q1. It said it was working to mitigate the impact of continued regulatory changes.

This included ways to engage with Dutch customers to improve the process of raising deposit limits when requested.

A player can have their monthly deposit limit increased if they provide documentation to support their financial means. FDJ United said it was working on measures to make this process “seamless” and expects better figures in the coming quarters.

It also noted the number of operators in the Dutch market had dropped from 27 to 25 since these rules were implemented.

“We think that this number will [continue to drop]. And as we are the leader of the market, we will benefit from that,” Chaffard said.

“We are quite positive on our capacity to continue to recruit, to grow our active user baseline and to find ways to help them go through this regulation limit,” Chaffard told investors.

FDJ lottery and sports betting revenue increases

The group’s lottery and retail sports betting grew by 3.6% to €640 million in the first quarter, compared to the previous year.

In France, where it operates a lottery monopoly, online lottery revenue grew by 14% to €79 million, thanks to an increased player base. Total lottery revenue in the market was also up by 5% to €528 million.

Retail sports betting for the three-month period was up on the success of French sports teams, but unfavourable football results caused revenue for the vertical to drop 1% to €112 million year-on-year.

However, betting stakes were up 5% year-on-year.

FDJ United looking ahead to Finland liberalisation

Looking ahead, the French operator said it was preparing for the upcoming opening of the Finnish online gambling market in 2027.

“It’s a country where we are operating today and we are waiting for the regulation to come. So for us, it’s an important one.”

Developments to launch a liberalised market in Finland have progressed quickly. The bill supporting the reform hit Parliament last month and it is expected to be approved in the summer.

If passed, the bill will open up Finland’s online gambling market to private operators from January 2027.

Meanwhile, FDJ United ruled out a return to the US market, following its exit last year.

Chaffard told investors: “We know it’s not possible to be profitable in this jurisdiction.”