Flutter Entertainment plans to reduce its workforce by as many as 1,400 jobs in its UK and Ireland operations, with Leeds and Dublin receiving the most significant impact. This decision comes shortly after Dan Taylor took over as group CEO, just three weeks into his new role.
Since April, the remote gaming duty has increased sharply from 21% to 40%, while remote betting duty is set to rise from 15% to 25% by April 2027. Flutter anticipates these changes will lead to a $540 million decline in adjusted EBITDA by 2027.
Kevin Harrington, CEO of Flutter's UK and Ireland division, commented on the situation, emphasizing that the tax increases have "fundamentally changed" the economic landscape for regulated operators. The drastic job cuts, according to Harrington, are a direct result of these tax hikes. "As we warned a year ago, we cannot fully absorb a rise of this magnitude without reducing our fixed cost base and therefore must restructure our business so that we can best position ourselves for the future," he explained.
Reports indicate that over 450 jobs in Leeds, where Flutter has approximately 1,700 employees, are at risk. However, it's unclear how many will ultimately be cut. In Dublin, around 240 jobs may be lost at the Clonskeagh headquarters, which employs about 1,770 people. The roles set for cuts span finance, HR, technology, training, and legal departments, with voluntary redundancy being offered to those affected.
Offshore teams will also face reductions. Betfair Romania Development has indicated that about 300 positions in its UK and Ireland teams in Cluj-Napoca will be eliminated, though a local consultant estimates that the actual number could be between 350 and 400. Similar cuts will impact staff in Porto.
This development positions Flutter as the latest and largest operator to make workforce reductions amidst significant tax changes impacting the UK gaming sector. The planned cuts represent nearly 16% of Flutter's total workforce of 9,000 in the UK and Ireland.
Interestingly, Flutter's retail operations appear to be exempt from this job restructuring. Last month, the group announced intentions to close up to 100 Paddy Power shops, potentially affecting 400 jobs, separate from the current round of layoffs. However, betting shops in Ireland will remain unaffected.
The timing of these job cuts is particularly notable as Taylor, who officially succeeded Peter Jackson on October 1, steps into his role amid a challenging landscape for Flutter. Previously leading Flutter's international division and serving as group president, Taylor has also managed Paddy Power Betfair from 2018 to 2020.
His first significant action as CEO involves a notable contraction in the company’s core markets, coinciding with Flutter's drop in share price by over 65% in the past year. The company is also facing intensified competition from prediction markets like Kalshi and Polymarket, in addition to temporary restrictions on online betting in Brazil.
Harrington expressed his immediate priority is to support colleagues through this challenging period, reiterating that the scale of the tax increase cannot be absorbed by the company without reducing costs. He maintains that, as the largest operator in the UK, Flutter is well-positioned to capture additional market share despite the restructuring.
The restructuring is expected to cost $80-$90 million (€70-€80 million), which Flutter will account for in the fourth quarter of 2026. The company believes these layoffs will ultimately allow them to maintain investments in customer offerings.
Flutter's announcement comes just ahead of the upcoming UK budget, with rumors that machine games duty may rise to 40%. Ninety Labour MPs have sent a letter to the chancellor urging a higher tax rate on Category B machines.
Grainne Hurst, CEO of the Betting and Gaming Council, labeled the job losses at Flutter a "devastating blow to workers and families" in the industry, urging government representatives to consider the existing damage to the regulated sector before imposing any further tax increases. Other companies like Bet365, Betfred, and Evoke have also initiated job cuts or closed locations this year as they grapple with the realities of higher duties.
