Impact of Rising Gambling Taxes on European Betting Markets

FDJ United reported a 3% year-on-year decline in revenue for the third quarter of 2025, totaling €864 million ($1 billion), down from €890 million ($1.04 billion) in Q3 2024. The company attributed this decrease primarily to increased gambling taxes in France and other European markets. Notably, French tax changes implemented on July 1 raised the online betting tax from 54.9% to 59.3% of gross gaming revenue (GGR), which accounted for €18 million ($21 million) of the overall €21 million ($24.5 million) tax impact during the quarter. Chairwoman and CEO Stéphane Pallez stated, “The change in FDJ United’s revenue at the end of September reflects the prolonged decrease in our online betting and gaming business in certain markets and the impact of higher taxation on gaming.”

FDJ United Q3 revenue dips 3% driven by rising European gambling taxesEntain the Owner of Ladbrokes and Coral Surges with Six Percent Revenue Growth Despite Favorable Sports Outcomes for PuntersRegulatory Changes in the Dutch Gambling MarketMacau Business

The increase in gambling taxes is not isolated to FDJ United. The UK gambling sector is also facing significant challenges, with Betfred warning it may close all 1,300 betting shops and cut 7,000 jobs if the government proceeds with plans to double gambling taxes in the upcoming budget. Betfred's CEO, Joanne Whittaker, expressed concerns that such measures could “wipe out the high-street betting shop,” threatening the future of the traditional gaming sector. Similarly, Flutter Entertainment announced the closure of 57 Paddy Power shops across the UK and Ireland, affecting nearly 250 employees, amid rising operational costs and market pressures.

Yorkshire PostBetfred warns of 1,300 betting shop closures and 7,000 job losses if gambling taxes risePaddy Power shop closures to impact almost 250 jobsFDJ United Q3 revenue dips 3% driven by rising European gambling taxesDaily Record (Scotland)

The Dutch gambling market is experiencing its own set of challenges, with the government raising the gambling tax from 30.5% to 34.2% in January 2025, and a further increase to 37.8% planned for January 2026. These changes are expected to cut into operator margins and projected revenue, with early data suggesting a revenue drop of about €40 million in 2025. The regulatory environment is tightening, with new licensing rules set to take effect in 2026, requiring operators to provide comprehensive exit plans if their licenses are revoked.

Regulatory Changes in the Dutch Gambling MarketFDJ United Q3 revenue dips 3% driven by rising European gambling taxesYorkshire PostPaddy Power shop closures to impact almost 250 jobsEntain the Owner of Ladbrokes and Coral Surges with Six Percent Revenue Growth Despite Favorable Sports Outcomes for Punters

Critics argue that the proposed tax increases could drive customers to unregulated offshore operators, exacerbating the black market. Whittaker warned that higher taxes could reduce, rather than increase, Treasury revenue by pushing punters towards illegal betting sites. Stella David, CEO of Entain, echoed these concerns, stating that increased taxation historically leads to a rise in black market activities. She emphasized the need for logical assessments in tax decisions, warning that such increases could force operators to cut back on marketing and bonuses, ultimately harming the sports sector.

Entain the Owner of Ladbrokes and Coral Surges with Six Percent Revenue Growth Despite Favorable Sports Outcomes for Punters

The rising gambling taxes across Europe are reshaping the betting landscape, leading to revenue declines for major operators like FDJ United and prompting significant operational changes in the UK and the Netherlands. As the industry grapples with these challenges, the potential consequences of tax increases loom large, raising concerns about the sustainability of traditional betting operations and the risk of further entrenching illegal gambling activities.

Regulatory Changes in the Dutch Gambling Market