Flutter Entertainment, the owner of Paddy Power, Sky Bet, and Betfair, announced it would reduce its workforce by up to 1,400 positions across multiple locations. Staff reductions will primarily impact offices in Leeds and Dublin, along with Flutter’s operations in the UK and Ireland based in Portugal and Romania. The company also indicated potential cuts affecting employees in London, Sunderland, Malta, and Gibraltar, though specific job categories facing elimination were not detailed.
Flutter’s leadership attributed the restructuring to tax increases implemented on the gambling industry through a recent Budget. The company stated it “cannot fully absorb” the magnitude of these tax hikes and must reduce its fixed cost base accordingly. The government introduced higher taxes on online casino and sports betting while exempting horse racing from the increases. Remote gaming duty on online casino betting rose to 40% from 21%, while general betting duty for online sports betting is scheduled to increase from 15% to 25% starting in April. Some measures took effect earlier in April.
Flutter employs approximately 28,500 people worldwide, including 9,000 in the UK and Ireland. The company estimates the restructuring will cost between $80 million and $90 million. Flutter projected that UK tax rises would reduce its underlying profit by $320 million in the current year and $540 million in 2027 before accounting for any savings generated through restructuring.
A government spokesperson characterized the job cuts as a commercial decision by Flutter rather than a result of government policy, while acknowledging the difficulty the situation presents for affected workers. The announcement follows similar moves by competitors, with Entain removing approximately 500 positions during the summer. Betting industry representatives had previously cautioned that increased tax burdens would necessitate workforce reductions and betting shop closures, though lawmakers dismissed these concerns as “scaremongering.”
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