Flutter, the parent company of Paddy Power, Sky Bet, and Betfair, has announced plans to cut up to 1,400 jobs following government tax increases on the gambling sector. According to we continue to expect these tax increases to have a very significant impact on the overall market,” Flutter Entertainment, On Tuesday. Flutter, which also owns Sky Bet and Betfair, employs 28,500 people across the world, including 9,000 in the UK and Ireland. Nor is VAT charged on bets, punters’ winnings from gambling are not taxed in the UK.
The company stated that it “cannot fully absorb” the financial impact of the tax hikes, which leadership claims have “fundamentally changed” the economic model of the UK betting and gaming industry while helping “fuel the unlicensed, unregulated market”.
Staff based in Leeds, Dublin, London, Sunderland, Malta, and Gibraltar, alongside UK and Ireland business workers at sites in Portugal and Romania, face the greatest uncertainty, though specific roles at risk have not been detailed. However, we understand this will be a difficult time for the workers,” they added.
Kevin Harrington, chief executive of the betting giant’s UK and Ireland division, explained that the company must restructure its fixed cost base to position itself for the future.
A government spokesperson described the workforce reductions as a “commercial decision for Flutter, not the UK government,” while acknowledging it would be a difficult period for employees.
The tax changes introduced in last year’s Budget included an increase in remote gaming duty on online casino betting from 21% to 40% in April, while general betting duty on online sports betting profits is scheduled to rise from 15% to 25% in April next year, leaving betting shop rates at 15%. Paid on the profits made from various forms of sports betting, was kept at 15% in betting shops, but is set to rise from 15% to 25% online in April next year, general betting duty.
Gambling firms had previously warned that rising costs would trigger layoffs and closures, though MPs dismissed those warnings as scaremongering, and Ladbrokes owner Entain also cut 500 roles over the summer. During the summer, Ladbrokes owner Entain announced job cuts, with news agency Reuters reporting 500 roles were being removed.
Flutter reported a worldwide pre-tax loss of $299m for the three months to June, compared to a $205m profit previously, despite a 3% rise in sales to $4.3bn and 4% revenue growth in the UK and Ireland driven by online gambling games.
The company estimated its restructuring plan will cost between $80m and $90m, having previously warned that UK tax rises would reduce underlying profit by $320m this year and $540m in 2027 before mitigations.
Flutter previously delisted from the London Stock Exchange in August, shifting its share trading solely to New York.
