Flutter Entertainment is preparing to cut up to 1,400 jobs across its UK and Ireland operations, with significant impacts expected in Leeds and Dublin. This downsizing occurs just three weeks into Dan Taylor’s role as group CEO, following a major shift in the company’s structure.
The company has contended with a substantial increase in remote gaming duty, which rose from 21% to 40% this past April. Moreover, remote betting duty is set to rise from 15% to 25% by April 2027. Flutter anticipates that these changes will cost the company approximately $540 million in adjusted EBITDA by 2027.
Kevin Harrington, CEO of Flutter UK and Ireland, underscored the effect of rising taxes on regulated operators, stating that these increases have “fundamentally changed” the economic viability of businesses in the market. He pointed out that the drastic job cuts are a direct response to the 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,” Harrington explained.
In Leeds, more than 450 positions are reportedly at risk, affecting part of the 1,700 staff employed there, as stated by the Yorkshire Evening Post. In Dublin, around 240 jobs may be lost, primarily at the Clonskeagh headquarters, which employs 1,770 people. Roles in finance, HR, technology, training, and legal departments are among those impacted, with affected employees offered voluntary redundancy.
The cuts extend beyond direct offices, impacting offshore teams as well. Betfair Romania Development anticipates around 300 job cuts among its UK and Ireland teams in Cluj-Napoca. Local consultant Doru Șupeală mentioned that the actual number could reach 350-400, warning of a “Hunger Games” scenario should voluntary departures not meet expectations. Staff in Porto are also expected to be affected by these changes.
Reuters reported that Flutter joins several other operators reducing their workforce as the UK gambling sector faces the most extensive tax reform in recent history. The job reductions represent close to 16% of Flutter’s total UK and Ireland workforce of 9,000.
Interestingly, Flutter's retail operations remain untouched at this moment. In a separate announcement last month, the group indicated plans to close up to 100 Paddy Power shops, placing 400 more jobs at risk, although Irish betting shops are not included in the current layoffs.
Taylor, who officially took over from Peter Jackson on October 1, previously led Flutter’s international division and has been tasked with revitalizing underperforming US operations. His initial strategy has led to significant job losses in core markets at a critical time for the company, which has experienced a more than 65% drop in share price over the past year, according to the Racing Post. Competing prediction markets like Kalshi and Polymarket, as well as a temporary ban on online betting in Brazil, add further pressure.
As the UK budget approaches, there’s speculation that the machine games duty rate could double to 40%. In light of this, 90 Labour MPs have urged the chancellor for increased taxation on Category B machines, putting more pressure on the sector.
Grainne Hurst, CEO of the Betting and Gaming Council, described the redundancies at Flutter as “another devastating blow to workers and families across our sector.” She called on government officials to acknowledge the harm already inflicted on the regulated market before imposing additional tax increases.
Other companies like Bet365, Betfred, and Evoke have also laid off employees or closed operations this year, reflecting the challenges posed by rising duties in the sector.
