Flutter Entertainment has announced plans to restructure its UK and Ireland operations, which could result in the loss of up to 1,400 jobs. This decision comes in response to significant increases in betting and gaming taxes outlined in last year’s Autumn Budget.
The company indicated that these potential redundancies, which will undergo consultation, will impact employees in Leeds and Dublin, as well as UK and Ireland roles based in offshore locations like Porto and Cluj-Napoca. A spokesperson for Flutter stated that job cuts are expected across “every function” within the organization.
The implementation of this restructuring is projected to cost between $80 million and $90 million, which is anticipated to be accounted for in the fourth quarter of 2026. Currently, Flutter employs around 28,500 individuals worldwide, with approximately 9,000 working in its UK and Ireland sector.
Kevin Harrington, CEO of Flutter's UK and Ireland division, emphasized the significant impact of the tax increase, which he stated has “fundamentally changed” the operational landscape for regulated operators. He remarked, “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.” Despite these challenges, Harrington expressed confidence in Flutter's ability to capture market share as the largest operator in the UK.
The tax pressures facing Flutter mirror the broader struggles within the UK gambling sector, which has encountered a rising fiscal burden and stricter regulatory oversight. In the previous Autumn Budget, remote gaming duty was increased nearly twofold from 21% to 40%, effective from April 1 of this year. Additionally, a new remote betting duty of 25%, currently at 15%, is set to take effect in April 2027. The UK government has also granted local councils new authority to block the opening of new retail locations.
This increased taxation has led to numerous cost-cutting measures across the industry. Recently, Betfred disclosed its intent to close up to 132 betting shops in the UK and reduce its workforce by over 600 employees. Similarly, Evoke shut down around 200 William Hill locations earlier this year, accounting for about 15% of its retail portfolio. Bet365 also announced plans to cut approximately 340 jobs due to “tax-related costs.”
The UK betting sector is bracing for another potentially impactful budget announcement next week. There is growing speculation that the machines games duty (MGD) could be raised to 40%, following a recommendation from the Social Market Foundation, which suggested increasing the MGD on higher-risk Category B machines. A group of Labour MPs led by Alex Ballinger recently urged Chancellor Jon Healey to include the MGD increase in the upcoming budget proposal.
Fred Done, the owner of Betfred, warned in a September interview with the Financial Times that more tax increases could lead to extensive shop closures and threaten the very existence of the retail betting market in the UK. Just last month, Flutter disclosed that it is contemplating the closure of up to 100 of its Paddy Power shops.
