Flutter Entertainment to Cut 1,400 Jobs, Citing UK Gambling Tax Hikes

Flutter Entertainment, the parent company of prominent brands such as Paddy Power, Sky Bet, and Betfair, announced on Tuesday that it will eliminate approximately 1,400 jobs across its UK and Ireland operations. The company cited significant increases in gambling duties, implemented by the Labour government, as the primary reason for the workforce reduction, which represents about 15 percent of its division's staff.

Flutter UK and Ireland chief executive Kevin Harrington stated that the gambling industry cannot absorb such a substantial tax increase without reducing its fixed costs. He argued that the hikes have fundamentally altered the economic model for the regulated betting and gaming sector in the UK, while simultaneously bolstering the unlicensed, unregulated market. The affected roles are spread across various locations, including Leeds, Sunderland, London, and Dublin, as well as international sites in Gibraltar, Malta, Porto, and Cluj, Romania.

The tax increases, introduced in the previous Budget by former chancellor Rachel Reeves, raised taxes on remote gaming from 21 percent to 40 percent and on online sports betting from 15 percent to 25 percent. Flutter has previously estimated that these changes would cost the company over £400 million by 2027. This latest round of job cuts follows a review of 100 Paddy Power shops in the UK and Ireland, which was expected to result in 400 job losses.

The broader gambling industry has seen similar contractions. Bet365 recently announced plans to cut 300 jobs at its Stoke-on-Trent headquarters. In July, Betfred announced the closure of 132 shops, leading to 600 job losses. William Hill's owner, Evoke, has closed 270 shops since the Budget, and Ladbrokes owner Entain has also indicated it would cut around 500 jobs.

While the government has suggested that high street closures are not solely its responsibility, industry leaders contend that managing retail and online divisions through a single balance sheet necessitates difficult choices. Prime Minister Burnham's administration has also signaled intentions to address the proliferation of betting shops and vape stores on high streets. Plans include revoking parts of the 2005 Gambling Act, which currently limits the ability of local councils to deny permits for new betting and slot machine establishments, even in the face of community opposition.

Harrington emphasized that his immediate priority is to support the affected employees through this challenging period. Despite the workforce reductions, Flutter remains confident in its market position, citing its status as the largest operator in the UK as a factor that will enable it to benefit from future market share gains.