Flutter Entertainment could reduce its workforce by up to 1,400 positions throughout its UK and Ireland operations, as the company embarks on a restructuring initiative. This decision was announced on Tuesday and is a direct response to significant tax hikes on betting and gaming in the UK, as detailed in the Autumn Budget of the previous year.
The expected job cuts, which are still subject to consultation, will impact employees in Leeds and Dublin, including those working in offshore hubs like Porto and Cluj-Napoca. A spokesperson from Flutter stated that layoffs will be necessary “across every function” of the organization.
The financial impact of these measures is projected to range between $80 million and $90 million, with the costs likely to be accounted for in the fourth quarter of 2026. Flutter currently employs about 28,500 people worldwide, with approximately 9,000 of those based in the UK and Ireland.
Kevin Harrington, Flutter’s CEO for the UK and Ireland, emphasized the adverse effects of the increased taxation, asserting that it has “fundamentally changed” the economic landscape for regulated operators in the region. “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 explained. He expressed confidence in Flutter’s capacity to capture market share, noting its position as the largest operator in the UK.
Flutter's announcement comes amid a challenging year for UK gambling companies facing a rising tax burden and stricter regulations. Last year, former Chancellor Rachael Reeves revealed plans to almost double the remote gaming duty from 21% to 40%, starting on April 1. Additionally, a separate remote betting duty of 25%, increasing from 15%, is set to take effect in April 2027. The UK government has also granted local councils greater authority to restrict the establishment of retail betting locations.
In light of these regulatory changes, many companies within the sector are implementing cost-saving measures. Betfred, for instance, announced plans in August to shutter as many as 132 betting shops and cut over 600 jobs. Similarly, Evoke closed around 200 William Hill shops this year, representing about 15% of its retail estate, while Bet365 cited “tax-related costs” as a reason for its decision to lay off about 340 workers last month.
Tax concerns are likely to escalate further as the UK betting industry anticipates the upcoming budget announcement next week. Speculations abound that the machines games duty (MGD) may double to 40%, following a recommendation by the Social Market Foundation think tank to increase the MGD on higher-risk Category B machines. Recently, a group of Labour MPs led by Alex Ballinger urged Chancellor Jon Healey to include this MGD hike in the forthcoming budget.
Fred Done, the owner of Betfred, warned the Financial Times in September that further tax increases could lead to numerous shop closures and severely impact the UK retail betting market. Notably, Flutter had indicated last month that it was contemplating shutting down up to 100 Paddy Power shops.
