Flutter Entertainment's restructuring plan will result in significant job cuts in Leeds and Dublin, affecting up to 1,400 roles across its UK and Ireland business. This decision comes mere weeks into Dan Taylor's tenure as the new group CEO.
The restructuring is a direct response to drastic changes in gaming taxes. Remote gaming duty surged from 21% to 40% in April, while remote betting duties are set to increase from 15% to 25% by April 2027. Flutter anticipates these tax hikes will impact its adjusted EBITDA, potentially costing $540 million in 2027.
Kevin Harrington, CEO for Flutter's UK and Ireland operations, explained that the tax increases have “fundamentally changed” the financial landscape for regulated operators, compelling the company to restructure. “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,” Harrington stated.
In Leeds, where Flutter has a workforce of roughly 1,700, over 450 positions are reportedly at risk. Meanwhile, around 240 jobs in Dublin are under threat, primarily at the company’s headquarters in Clonskeagh, which employs 1,770 people. Those affected work in finance, HR, technology, training, and legal, with the option of voluntary redundancy.
The job cuts also extend to offshore hubs, specifically at Betfair’s operation in Romania, where approximately 300 positions in Cluj-Napoca are slated for elimination, with local estimates suggesting the number could reach 350-400. There are also implications for teams in Porto, Portugal.
These job reductions position Flutter as the most recent and largest operator to downsize amidst the steepest tax reforms the UK gambling sector has experienced in years. The planned cuts represent nearly 16% of Flutter's 9,000 UK and Ireland workforce.
Flutter's retail operations are not included in these layoffs. In the previous month, the company announced it would close up to 100 Paddy Power shops, putting an estimated 400 jobs at risk. However, betting shops in Ireland will not be affected by the latest cuts.
This strategic contraction occurs just as Dan Taylor officially took over from Peter Jackson on October 1. Prior to this, he managed Flutter’s international division and focused on improving its US operations. Taylor also had an earlier leadership role at Paddy Power Betfair from 2018 to 2020.
His first major decision in the top position involves reducing the company's footprint in its founding markets, coinciding with challenges such as a fall of over 65% in its share price over the past year and increased competition from emerging prediction markets like Kalshi and Polymarket. Additionally, Brazil has implemented a temporary ban on online betting, further complicating Flutter's situation.
Harrington emphasized that his priority is to provide support to affected employees during this challenging time. He reiterated that the company cannot manage the tax increase without cutting its fixed costs but remains optimistic about gaining market share as the UK’s largest operator.
The restructuring is expected to incur costs between $80-$90 million (€70-€80 million), slated to be recorded in Q4 2026. Flutter believes this move will help safeguard its investment in customer experiences.
These layoffs occur on the eve of the UK budget, with growing concerns that machine games duty might double to 40%. In a letter to the Chancellor, 90 Labour MPs have advocated for a higher tax rate on Category B machines. Grainne Hurst, CEO of the Betting and Gaming Council, condemned the Flutter redundancies as "another devastating blow to workers and families across our sector,2 urging the government to be mindful of the damage the existing tax increases have already inflicted on the regulated sector. Other companies such as Bet365, Betfred, and Evoke have similarly reduced their workforces or shuttered operations this year as tax pressures increase.
