Flutter Entertainment, owner of Paddy Power, Sky Bet and Betfair, announced plans to cut up to 1,400 jobs after the UK government imposed tax rises on online gambling that the company says it "cannot fully absorb."
The cuts will affect staff based in Leeds and Dublin, along with workers at Flutter's sites in Portugal and Romania supporting its UK and Ireland business. Additional reductions could affect employees in London, Sunderland, Malta and Gibraltar, though specific roles at risk have not been disclosed. Flutter employs 28,500 people globally, including 9,000 in the UK and Ireland.
CEO Kevin Harrington said the tax hikes had "fundamentally changed" the economic model of the UK betting and gaming industry. Last year's Budget introduced tax rises on online casino and sports betting, with horse racing exempt. Remote gaming duty on online casino betting rose from 21% to 40% in April. General betting duty on online sports betting is set to rise from 15% to 25% next April.
Harrington stated: "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."
Flutter claims the tax rises will reduce its underlying profit by $320m this year and $540m in 2027 before restructuring savings. The company's restructuring plan will cost between $80m and $90m.
A government spokesperson called the job cuts "a commercial decision for Flutter, not the UK government" but acknowledged it would be "a difficult time for the workers."
The cuts reflect broader industry pressure. Ladbrokes owner Entain announced job cuts during summer, with 500 roles being removed, according to Reuters. Betting firms had warned that cost increases would trigger job losses and shop closures, but MPs dismissed the warnings as scaremongering.
Flutter posted a $299m pre-tax loss for the three months to June for its entire business worldwide, compared with a $205m profit in the same period last year, though UK and Ireland revenues rose 4%. The company delisted from the London Stock Exchange in August, with shares now trading solely in New York.