Flutter Entertainment has revealed plans to reduce its workforce by up to 1,400 positions, responding to the rising tax pressures facing the UK gambling sector. The announcement comes as part of a broader restructuring strategy following the tax increases outlined in last year’s Autumn Budget, which significantly impacts the industry.
The job cuts will primarily affect employees in Leeds and Dublin, as well as UK&I roles stationed in overseas hubs like Porto and Cluj-Napoca. The company estimates that implementing these changes will cost between $80 and $90 million, with the process expected to be completed by the fourth quarter of 2026. Currently, Flutter employs around 28,500 people globally, including approximately 9,000 based in Ireland and the UK.
Kevin Harrington, CEO of Flutter UK and Ireland, stated, "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. We remain confident that we are well placed to benefit from share gains given our position as the largest scale operator in the UK."
This decision by Flutter follows a particularly tough year for gambling firms in the UK, who are contending with increased taxation and tighter regulations. The former Chancellor Rachael Reeves had disclosed during the Autumn Budget that the remote gaming tax would nearly double from 21% to 40%, effective from April 1 of this year. Additionally, a hike in the remote betting tax from 15% to 25% will be implemented by April 2027. Local authorities were also given greater authority to halt new retail gambling venues.
As the industry grapples with these challenges, Betfred has already announced the closure of 132 betting shops, potentially displacing 600 workers. Evoke similarly closed more than 200 William Hill outlets.
Another budget discussion is generating buzz in the UK betting market, particularly concerning the anticipated increase in machines games duty (MGD) to 40%. This follows a recommendation from the Social Market Foundation to adjust the MGD on high-risk Category B machines. Recently, a coalition of Labour MPs, spearheaded by Alex Ballinger, formally approached UK Chancellor Jon Healey, urging him to address the proposed MGD increase in the upcoming budget.
