Flutter Plans Up to 1,400 Job Cuts Following UK Gambling Tax Increases
United Kingdom.- 22 October 2026 | www.zonadeazar.com Flutter Entertainment, the international gambling group behind Paddy Power, Sky Bet and Betfair, has announced plans to restructure its UK and Ireland operations, potentially resulting in up to 1,400 job losses.
Announced on 20 October 2026, the decision follows substantial increases in online gambling taxation introduced through the United Kingdom’s November 2025 Budget.
The proposed redundancies represent approximately 16% of the division’s 9,000 employees, although the process remains subject to employee consultation.
Locations Affected and Restructuring Costs
The restructuring will affect employees across several European locations:
- Leeds, United Kingdom.
- Dublin, Ireland.
- Porto, Portugal.
- Cluj-Napoca, Romania.
Flutter currently employs approximately 28,500 people worldwide.
The company estimates that the restructuring will generate costs of between US$80 million and US$90 million, to be recognised during the fourth quarter of 2026.
These expenses were already included in the financial guidance previously communicated to investors.
Higher Gambling Taxes Increase Financial Pressure
The UK Government’s November 2025 Budget introduced two major tax increases:
- Online casinos: Remote Gaming Duty increased from 21% to 40% in April 2026.
- Online sports betting: General Betting Duty will rise from 15% to 25% in April 2027, excluding horseracing.
Flutter estimates that these changes will reduce its 2027 adjusted EBITDA by approximately US$540 million before mitigation.
The company expects to offset US$201 million through operational and commercial savings.
After these measures, the projected net financial impact for 2027 would be approximately US$339 million.
Executive Comments
Kevin Harrington, CEO of Flutter UK & Ireland, explained that the tax increases had substantially changed the economic conditions facing regulated gambling operators.
He stated that the company could not fully absorb the additional taxation without reducing its fixed cost base.
Harrington also warned that higher taxes could encourage the expansion of unlicensed gambling operators, echoing concerns raised by other industry representatives.
Financial Market Reaction
The announcement also prompted adjustments among financial analysts.
On 20 October, Flutter shares closed at US$78.98, representing a 2.07% increase during the trading session.
However, two investment banks reduced their price targets:
- Truist Financial: from US$120 to US$100.
- JPMorgan: from US$114 to US$110.
Both institutions maintained their existing stock ratings.
Separately, Flutter is reviewing the potential closure of up to 100 Paddy Power betting shops, which could place another 400 jobs at risk.
Next Steps and Industry Impact
Flutter is expected to provide further details of its cost reduction programme when it publishes its third-quarter financial results in November.
The company is targeting US$500 million in gross savings by 2029 through a second phase of restructuring.
Meanwhile, the British gambling industry is preparing for the next national Budget, scheduled for 28 October, amid concerns over potential additional tax measures.
For the wider iGaming industry, Flutter’s restructuring highlights the potential effects of fiscal policy changes on employment, investment and the profitability of regulated gambling businesses.
Editó: @fonta
