Flutter Entertainment announced plans to cut up to 1,400 jobs as part of a restructuring of its UK and Ireland operations. This decision, revealed on Tuesday, comes in the wake of significant increases in UK betting and gaming taxes detailed in last year’s Autumn Budget.
The affected roles will primarily be in Leeds and Dublin, as well as in offshore locations such as Porto and Cluj-Napoca. A spokesperson for Flutter indicated that job reductions would be seen across all functions within the company.
The anticipated cost of implementing these measures is between $80 million and $90 million, with the financial impact expected to be reported in the fourth quarter of 2026. Flutter currently employs around 28,500 people worldwide, with roughly 9,000 in the UK and Ireland.
Kevin Harrington, CEO of Flutter UK's operations, remarked on the significant impact of the tax increases, stating that they have fundamentally altered the economic models for regulated operators. He noted, "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 expressed confidence in Flutter’s ability to gain market share, emphasizing its standing as the largest operator in the UK.
Flutter's announcement is part of a broader trend affecting UK gambling operators, many of whom are facing increased tax burdens and stricter regulations. The Autumn Budget last year saw the former chancellor Rachael Reeves announce that remote gaming duty would nearly double from 21% to 40%, effective April 1. Additionally, a new remote betting duty of 25% will take effect in April 2027. The government also granted local councils more authority to restrict the opening of new retail betting locations.
These changes have already triggered cost-cutting measures across the industry. In August, Betfred revealed plans to close up to 132 betting shops and cut over 600 jobs. Similarly, Evoke shut around 200 William Hill locations, accounting for about 15% of its retail network. Bet365 also announced plans to eliminate about 340 positions, linking the cuts to rising tax-related expenses.
Adding to the trepidation within the betting sector is the upcoming budget announcement next week, where speculation has arisen that the machines games duty (MGD) may again double to 40%. This estimate follows a recommendation from the think tank Social Market Foundation, which encouraged higher taxation on higher-risk Category B gaming machines. Recently, a group of Labour MPs led by Alex Ballinger urged the Chancellor Jon Healey to include this MGD increase in his budget.
In September, Fred Done, the owner of Betfred, warned the Financial Times that further tax hikes could lead to widespread betting shop closures, effectively threatening the viability of the UK’s retail betting market. Flutter has also considered closing up to 100 of its Paddy Power shops amid these tough conditions.
