Flutter Entertainment plans to restructure its UK and Ireland operations, which could result in the loss of up to 1,400 jobs. This decision is a direct reaction to significant tax increases announced in the UK during last year's Autumn Budget.
The redundancies, pending consultation, will impact workers in Leeds and Dublin and will also include UK&I positions located in offshore sites like Porto and Cluj-Napoca. A spokesperson for Flutter indicated that job cuts will span across all company functions.
The financial implication of these changes is projected to be between $80 million and $90 million, with recognition of these costs anticipated in the fourth quarter of 2026. Globally, Flutter has about 28,500 employees, with roughly 9,000 based in the UK and Ireland.
Kevin Harrington, Flutter’s UK&I CEO, discussed the repercussions of the tax hike, stating that it has “fundamentally changed” the economic landscape for regulated operators in the UK market. He acknowledged that the company cannot accommodate such a significant tax increase without reducing its fixed costs, necessitating a restructuring to better position the company for future opportunities. Harrington remains optimistic, asserting that Flutter is in a strong position to gain market share as the leading operator in the UK.
This announcement comes during a challenging period for UK gambling companies facing increased tax burdens and stricter regulations. In the previous Autumn Budget, former chancellor Rachael Reeves disclosed that the remote gaming duty would almost double from 21% to 40%, effective April 1 of this year. Additionally, a remote betting duty set to rise from the current 15% to 25% will take effect in April 2027, alongside new powers for local councils to block retail location openings.
Consequently, many companies are implementing cost-saving measures. In August, Betfred revealed plans to shutter up to 132 betting shops in the UK and cut over 600 jobs. Similarly, earlier this year, Evoke closed about 200 William Hill shops, accounting for roughly 15% of its retail estate. Bet365 indicated that it was cutting approximately 340 roles last month, relating this to increased tax costs.
The UK betting industry is bracing itself for the upcoming budget announcement next week, with concerns that the machines games duty (MGD) may be set to double to 40%. This speculation follows a recommendation from the Social Market Foundation think tank to raise the MGD on higher-risk Category B machines. Additionally, a group of Labour MPs led by Alex Ballinger has urged Chancellor Jon Healey to consider this increase in the budget. In September, Fred Done, owner of Betfred, warned that further tax increases could result in significant closures and nearly wipe out the UK’s retail betting market. Just last month, Flutter indicated it might close up to 100 of its Paddy Power shops.
