Flutter Entertainment has announced plans to cut up to 1,400 jobs across its UK and Ireland operations as part of a restructuring effort. This decision comes after significant increases in betting and gaming taxes outlined in last year's Autumn Budget.
The company indicated that the redundancies, which will go through a consultation period, will primarily affect staff in Leeds and Dublin, as well as UK&I roles located in offshore hubs like Porto and Cluj-Napoca. A spokesperson for Flutter stated that the job cuts are anticipated "across every function" within the company.
The cost of implementing these measures is estimated between $80 million and $90 million, expected to be recognized in the fourth quarter of 2026. Flutter currently employs about 28,500 individuals globally, with around 9,000 working in its UK & Ireland branches.
Kevin Harrington, CEO of Flutter UK&I, emphasized the severe implications of rising UK taxes, claiming they have "fundamentally changed" the economic landscape for regulated operators. He 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 to best position ourselves for the future." He expressed confidence in the company’s ability to gain market share given Flutter's status as the largest operator in the UK.
The announcement highlights a challenging year for UK gambling operators facing heightened taxation and stricter regulations. In the previous Autumn Budget, then-Chancellor Rachael Reeves revealed plans to nearly double the remote gaming duty from 21% to 40%, effective April 1 of this year. An additional rise in remote betting duty from 15% to 25% is scheduled for April 2027. Alongside these changes, new powers have been granted to local councils to restrict the opening of retail betting locations.
This has prompted numerous cost-saving initiatives within the industry. Recently, Betfred announced it would close up to 132 betting shops and reduce its workforce by over 600 employees, while earlier this year, Evoke shut down around 200 William Hill shops, representing 15% of its retail presence. Bet365 also cited “tax-related costs” as a reason for cutting approximately 340 jobs last month.
Concerns about rising taxes continue as the UK betting sector prepares for the upcoming budget announcement. Speculation is rife that the machines games duty (MGD) could increase to 40%, following recommendations from the Social Market Foundation for higher taxes on riskier Category B machines. Last week, Labour MPs, led by Alex Ballinger, called on Chancellor Jon Healey to include MGD increases in the forthcoming budget.
Fred Done, owner of Betfred, warned in September that further tax hikes could lead to widespread retail betting shop closures and threaten the UK’s betting market. Last month, Flutter also disclosed it was considering shutting down as many as 100 of its Paddy Power shops.
