Flutter Entertainment announced plans to cut up to 1,400 jobs across its UK and Ireland operations as part of a restructuring effort. This decision comes in response to significant increases in betting and gaming taxes that were introduced in last year's Autumn Budget.
The job reductions, which will undergo consultation, will impact employees in Leeds and Dublin as well as those in offshore locations such as Porto and Cluj-Napoca. A representative from Flutter indicated that job cuts would occur across all functions within the company.
The financial impact of this restructuring is projected to cost between $80 million and $90 million, which is expected to be recognized in the fourth quarter of 2026. Flutter currently employs about 28,500 people worldwide, with approximately 9,000 working in its UK and Ireland division.
Kevin Harrington, CEO of Flutter's UK and Ireland segment, noted that the increase in UK taxes has "fundamentally changed" the economic landscape for regulated operators. He emphasized that the company cannot absorb such a substantial tax increase without implementing significant changes to its cost structure: "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 that Flutter is well-positioned to gain market share, given its status as the largest operator in the UK.
The announcement follows a tough period for UK gambling operators contending with increased tax obligations and stricter regulations. In the Autumn Budget last year, then-chancellor Rachael Reeves revealed that the remote gaming duty would nearly double from 21% to 40%, effective April 1 of this year. Additionally, a new remote betting duty of 25% is set to be introduced in April 2027. The UK government also granted local councils enhanced authority to prevent the opening of new retail gambling locations.
These developments have led to a wave of cost-cutting measures in the sector. For instance, in August, Betfred revealed plans to close up to 132 betting shops and lay off over 600 staff. Evoke also shuttered around 200 William Hill retail shops, accounting for 15% of its estate, while Bet365 announced cuts of approximately 340 jobs, attributing the decision to "tax-related costs."
Concerns about further tax increases loom large in the industry, with speculation suggesting that the machines games duty (MGD) may double to 40%. This follows a recommendation from the Social Market Foundation, a think tank, to raise MGD for higher-risk Category B machines. Recently, Labour MPs, led by Alex Ballinger, wrote to UK Chancellor Jon Healey urging the inclusion of the MGD increase in the upcoming budget.
In September, Betfred's owner Fred Done cautioned that additional tax hikes could lead to widespread retail store closures, threatening the future of the UK's betting shops. Moreover, Flutter disclosed last month that it was contemplating shutting down up to 100 of its Paddy Power stores in light of the ongoing challenges.
