Flutter Entertainment has announced plans to restructure its UK and Ireland operations, potentially leading to the loss of up to 1,400 jobs. This decision comes in response to significant increases in UK betting and gaming taxes that were introduced in the Autumn Budget last year.
The company indicated that the redundancies will impact staff in both Leeds and Dublin, as well as those in offshore hubs like Porto and Cluj-Napoca. A spokesperson for Flutter stated that job cuts could be expected across all functions of the company.
The anticipated costs associated with implementing these changes are estimated to be between $80 million and $90 million, with recognition of these expenses expected in the fourth quarter of 2026. Globally, Flutter employs around 28,500 people, approximately 9,000 of whom work within the UK and Ireland.
Kevin Harrington, CEO of Flutter’s UK and Ireland division, emphasized that the increase in UK taxes has “fundamentally changed” the economic models for regulated operators in the market. He explained, “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 capture market share, noting the company's status as the largest operator in the UK.
The news of Flutter’s restructuring coincides with a challenging year for UK gambling operators, who are increasingly facing a growing tax burden and stricter regulations. In last year's Autumn Budget, then-chancellor Rachael Reeves announced that the remote gaming duty would nearly double from 21% to 40%, effective April 1 of this year. A separate increase in the remote betting duty from 15% to 25% is also scheduled to take effect in April 2027. Furthermore, local councils have been granted new powers to restrict the opening of retail locations.
These developments have prompted various cost-saving efforts throughout the sector. For instance, Betfred has announced plans to close up to 132 betting shops and reduce its workforce by over 600 employees. Similarly, Evoke closed around 200 of its William Hill shops, accounting for about 15% of its retail estate. Bet365, when announcing plans to cut approximately 340 jobs last month, cited “tax-related costs” as a factor.
The UK betting sector is awaiting the upcoming budget announcement, set for next week, with concerns growing about the potential doubling of machines games duty (MGD) to 40%. This speculation follows a recommendation from the Social Market Foundation urging the government to increase MGD on higher-risk Category B machines. Recently, a group of Labour MPs, led by Alex Ballinger, wrote to Chancellor Jon Healey, advocating for the inclusion of the MGD increase in the upcoming budget.
Fred Done, the owner of Betfred, warned in September that further tax hikes could lead to widespread retail shop closures and severely impact the retail betting market in the UK. Last month, Flutter also indicated it was contemplating the closure of up to 100 of its Paddy Power shops.
