Europe’s iGaming sector is under pressure as higher taxes hit operator margins, with Française des Jeux (FDJ) reporting weak Q1 results and cutting guidance, while Italy faces tight deadlines to complete major regulatory reforms.
These issues were discussed on iGaming Daily, where SBC Media Manager Fernando Noodt was joined by SBC News Editor Ted Orme-Claye and Editor-at-Large Ted Menmuir.
Taxation remains the main concern. Menmuir outlined the impact on FDJ: “The first increased exposure is coming in at €25m. Leadership believes that by the end of the year we will stand at €90m-plus. Just on those figures alone, that’s a heck of an impact to take from the bottom line of any PLC.”
FDJ is also dealing with slower growth in its core lottery business, which generates around 65% of revenue. At the same time, its online division, strengthened by the Kindred acquisition, including Unibet and 32Red, has yet to show meaningful growth.
The flat performance has raised doubts about FDJ’s diversification strategy and its reliance on the French market.
In Italy, Deputy Finance Minister Maurizio Leo is working to finalise a land-based gambling reform package before the 10 August deadline for inclusion in the 2026 budget. The plan includes revenue allocation across 20 regions and more than 100 municipalities.
Meanwhile, Sports Minister Andrea Abodi is overseeing discussions to revise gambling advertising laws, including changes to the 2018 Dignity Decree. The issue has gained urgency following Italy’s failure to qualify for another World Cup, increasing pressure from football bodies.
A proposed “right to bet” model would allow betting revenues to support sports funding, but agreement has not yet been reached.
