Flutter Cuts 1,400 UK Jobs Citing Gambling Tax Increases

Flutter Entertainment, the parent company of gambling brands including Paddy Power, Betfair, and SkyBet, has announced plans to cut up to 1,400 jobs in its UK and Ireland business. The restructuring is a direct response to increased gaming taxes announced in the UK Budget last year.

Restructuring Details

The job cuts will affect employees in various locations, including Leeds, Dublin, and UK and Ireland staff working at Flutter premises in Portugal and Romania. Flutter employs 28,500 people worldwide, with 9,000 of those in the UK and Ireland division. The proposed redundancies represent approximately 15% of the staff in that division, or roughly one in seven positions.

The plans are currently subject to consultation. Kevin Harrington, CEO of Flutter UK & Ireland, stated that the company cannot absorb the tax increases without reducing its fixed cost base.

"The material increase in betting and gaming duties announced in the UK Budget last year has fundamentally changed the economic model of the regulated betting and gaming industry in the UK while helping to fuel the unlicensed, unregulated market," Harrington said. "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."

Tax Changes and Industry Impact

Online gambling tax increases took effect in April 2026. Remote gaming duty rose from 21% to 40%. While general betting duty remained at 15% for betting shops, it is set to rise from 15% to 25% for online betting in April 2027.

Flutter stated that it expects these tax increases, announced by former chancellor Rachel Reeves last November, to have a "very significant impact" on the overall market. The company said the restructure is expected to help it deliver "material second-order mitigation benefits."

Political and Industry Reactions

The announcement has sparked debate regarding the impact of Labour's tax policies. A government spokesperson responded to the news by stating: "This is a commercial decision for Flutter, not the UK Government. However, we understand this will be a difficult time for the workers."

Grainne Hurst, chief executive of the Betting and Gaming Council, argued that the job losses are evidence of the consequences of the government's tax rises. She noted that more than 600 betting shops have already closed or announced closure since the last Budget, with over 10,000 jobs lost or put at risk.

"These are not just numbers," Hurst said. "They are people facing uncertainty over their livelihoods as major British employers are forced to make painful decisions in response to mounting tax pressures."

Hurst also referenced a letter from 90 Labour MPs, led by Alex Ballinger, which called for machine games duty to be doubled to 40% in the upcoming Budget. Hurst countered this proposal, citing EY modelling that suggests such a rise could cost up to 16,000 jobs, close nearly 1,500 betting shops and 34 casinos, and leave the Treasury up to £124 million worse off.

Why it matters

This development highlights the tension between government revenue goals through taxation and the operational viability of regulated industries. Flutter's decision to link significant job losses directly to tax policy underscores the potential economic ripple effects of fiscal changes on employment and high street presence. The government maintains that such decisions are commercial, while industry bodies argue that further tax hikes could accelerate job losses and benefit unregulated markets.

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Sources

• personneltoday.com: Paddy Power owner blames tax hikes for 1,400 UK job cuts - Personnel Today
• aol.com: Labour blamed as Paddy Power owner Flutter axes 1,400 jobs - AOL
• express.co.uk: Labour blamed as Paddy Power owner Flutter axes 1,400 jobs | Politics | News | Express.co.uk

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.