Flutter Entertainment has announced plans to cut up to 1,400 jobs as part of a restructuring of its UK and Ireland operations. This decision is a direct response to significant increases in betting and gaming taxes, which were revealed in last year’s Autumn Budget.
The job cuts, which will be subject to consultations, will impact employees in Leeds and Dublin, along with UK and Ireland roles based in offshore locations like Porto and Cluj-Napoca. A spokesperson for Flutter indicated that reductions would affect "every function" across the company.
The cost of these measures is projected to be between $80 and $90 million and is expected to be reflected in the fourth quarter of 2026.
With a global workforce of approximately 28,500, Flutter employs around 9,000 in its UK and Ireland business. Kevin Harrington, CEO of Flutter’s UK and Ireland operations, pointed out that the increase in taxes has "fundamentally changed" the economic landscape for regulated operators.
Harrington 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.” He expressed confidence in Flutter’s ability to gain market share, citing the company's status as the largest operator in the UK.
The announcement comes during a challenging period for UK gambling operators facing a heavier tax load and stricter regulations. In the last Autumn Budget, the former chancellor, Rachael Reeves, disclosed plans to nearly double the remote gaming duty from 21% to 40%, effective April 1 this year. Additionally, a new remote betting duty of 25%, which will increase from the current rate of 15%, is set to take effect in April 2027. Local councils have also been granted new powers to restrict retail betting locations, aggravating cost pressures within the sector.
The impact of these tax changes has prompted several cost-saving measures across the industry. In August, Betfred revealed its intentions to shut down up to 132 betting shops while laying off over 600 employees. Similarly, Evoke closed around 200 of its William Hill shops earlier this year, representing roughly 15% of its retail estate. Bet365 announced plans to cut around 340 jobs last month, citing increased “tax-related costs.”
Concerns regarding further tax hikes loom as the UK betting sector waits for the upcoming budget announcement set for next week. Speculation is rife that the machines games duty (MGD) could be raised to 40%, following a suggestion from the Social Market Foundation think tank. In a letter to UK Chancellor Jon Healey, Labour MPs, led by Alex Ballinger, urged the government to include the MGD increase in the budget.
Fred Done, the owner of Betfred, remarked to the Financial Times in September that additional tax hikes could lead to widespread betting shop closures and near-elimination of the retail betting market in the UK. Recently, Flutter announced it was considering shutting up to 100 of its Paddy Power outlets in response to increasing operational pressures.
