The owner of Paddy Power and Sky Bet plans to reduce its workforce by 1,400 positions, citing the economic impact of recent UK government tax hikes on the gambling industry.
Key facts
- •Flutter expects to incur a one-off cost of $90 million (£67.3 million) related to the redundancy program.
- •The company's UK and Ireland workforce accounts for approximately 9,000 of its 28,500 global employees.
- •Flutter delisted from the London Stock Exchange in August and now trades exclusively on the New York Stock Exchange.
- •In the three months to June, the company reported a $299 million pre-tax loss compared to a $205 million profit in the same period last year.
- •Flutter shares rose more than 2% in early US trading following the announcement.
Flutter Entertainment, the parent company of Paddy Power and Sky Bet, has announced plans to cut up to 1,400 jobs across its international operations. The company, which employs 28,500 people globally, stated that tax increases on online gaming and sports betting have fundamentally altered its economic model. The restructuring will impact staff in locations including Leeds, Dublin, Sunderland, London, Portugal, Romania, Malta, and Gibraltar.
By the numbers
Impact of Tax Policy
Flutter’s UK and Ireland division, which employs approximately 9,000 people, is expected to bear the brunt of the reductions. The company cited the 2025 autumn budget, which increased remote gaming duty from 21% to 40% and set a rise for online sports betting duty from 15% to 25% for April 2026. Kevin Harrington, chief executive of Flutter’s UK and Ireland business, stated the company could not fully absorb tax rises of this magnitude without reducing its fixed cost base.
Industry and Government Response
The announcement has intensified debate regarding whether tax policy or internal strategic shifts are driving the job losses. While Flutter points to government duties, some industry observers suggest the cuts also align with the ongoing integration of the Sky Bet brand, which Flutter acquired in 2020. A government spokesperson characterized the layoffs as a commercial decision for the company, while noting the difficulty for affected staff.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Guardian Business, BBC Business.
