Flutter Entertainment has announced that it may cut up to 1,400 jobs as part of a restructuring within its UK and Ireland operations. This decision comes in response to significant increases in betting and gaming taxes that were introduced in last year's Autumn Budget.
The layoffs will predominantly impact employees in Leeds and Dublin, including roles situated in offshore locations like Porto and Cluj-Napoca. A spokesperson for Flutter stated that the job cuts will be across every function of the company, subject to a consultation process.
The financial impact of these measures is estimated to cost between $80 million and $90 million, which Flutter expects to account for in the fourth quarter of 2026. Overall, Flutter employs approximately 28,500 people worldwide, with about 9,000 based specifically in the UK and Ireland.
Kevin Harrington, Flutter’s CEO for the UK and Ireland, spoke about the repercussions of the increased tax rates, indicating that they have "fundamentally changed" the operating models for regulated firms in the market. 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. We remain confident that we are well placed to benefit from share gains given our position as the largest scale operator in the UK."
Flutter's announcement highlights the ongoing challenges faced by UK gambling operators, who are adjusting to a heavier tax burden and tighter regulations. Last year, remote gaming duty nearly doubled from 21% to 40%, effective from April 1 this year, while a new remote betting duty of 25% is set to take effect in April 2027. Furthermore, the UK government has granted local councils new authority to restrict the opening of retail betting locations.
These regulatory changes have led to a series of cost-cutting measures within the industry. For example, Betfred recently announced plans to close up to 132 betting shops and reduce its workforce by over 600 employees. Additionally, Evoke has closed approximately 200 William Hill shops, representing about 15% of its retail estate. Bet365 has also cited "tax-related costs" as a reason for cutting around 340 jobs last month.
The UK betting sector is also anticipating next week’s upcoming budget announcement, with many speculating that the machines games duty (MGD) could double to 40%. This follows a recommendation from the Social Market Foundation, which has urged the government to increase MGD on higher-risk Category B machines. In a letter to UK Chancellor Jon Healey, Labour MPs led by Alex Ballinger called for the inclusion of the MGD hike in the upcoming budget.
Fred Done, owner of Betfred, expressed concern to the Financial Times last month that additional tax increases could lead to widespread closures of betting shops and severely impact the retail betting market in the UK. Recently, Flutter also indicated it was considering shutting down up to 100 of its Paddy Power shops.
