Flutter Layoffs Reach 1,400 as Gambling Tax Pressure Mounts

Flutter Entertainment, the gambling giant behind Paddy Power, Sky Bet and Betfair, to name but a few, has announced plans to cut up to 1,400 jobs. It blames increases to UK gambling taxes.

The proposed redundancies were announced today and could affect approximately 15% of the company's 9,000 employees.

According to Flutter's official announcement, the restructuring will primarily affect staff in Leeds and Dublin. It will also affect employees supporting its UK and Ireland operations at offices in Portugal and Romania.

Though the proposals remain subject to consultation, Flutter expects the restructuring to cost between £60 and £67.5 million.

The announcement comes just over a week before the Autumn Budget. The gambling industry was already warning that further tax increases could lead to widespread job losses and betting shop closures.

Flutter Blames 2025 Gambling Tax Increases

Flutter has attributed the planned layoffs to increases in gambling taxation. Under the changes announced in the November 2025 Budget, Remote Gaming Duty increased from 21% to 40%. This change took place in April this year and applies to all online casino games.

From April 2027, General Betting Duty (GBD) on online sports betting, excluding horseracing, will also rise from 15% to 25%.

Flutter previously estimated that the changes to UK iGaming taxes would reduce its adjusted earnings before interest, taxes, depreciation and amortisation by approximately $540 million in 2027.

Though, the company expects to offset $201 million of that impact through its initial cost-saving measures.

Kevin Harrington, Chief Executive of Flutter UK and Ireland, said the tax increases had fundamentally changed the economics of the regulated gambling market.

‘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.’

Job Cuts Come Ahead of Further Gambling Tax Decisions

Flutter's announcement arrives at a particularly sensitive time for the UK gambling industry.

The government is considering further changes to gambling taxation in the upcoming Budget on 28 October, including a possible increase to Machine Games Duty (MGD).

Unlike RGD and GBD, MGD affects gaming machines in land-based gambling venues, including betting shops and casinos.

The Betting and Gaming Council has repeatedly warned that increasing the tax burden could threaten jobs and high street gambling businesses.

In an open letter to the Chancellor on 14 October, executives from six major gambling companies urged the government not to introduce further tax rises.

The BGC cited modelling suggesting that increasing MGD to 40% could result in between 690 and 1,470 betting shop closures.

Flutter's proposed redundancies are not a direct consequence of any potential MGD increase. But, the scale of the proposed cuts still provides a clear example of how a major gambling operator is responding to the new tax environment.

Could Higher Gambling Taxes Benefit the Biggest Operators?

Flutter's restructuring announcement also came with an interesting aside. The company says higher taxes have forced it to reduce its workforce. But, it also expects the changes to help protect investment in its customer offering and support future market share growth.

Flutter pointed to its position as the UK's largest gambling operator as a reason for confidence.

This raises questions about whether higher taxes could ultimately strengthen the competitive position of the industry's biggest businesses.

Larger operators may have greater resources to absorb tax increases, restructure their operations and continue investing in technology and customer acquisition.

Smaller operators may find themselves with fewer opportunities to offset those additional costs.

For now, the proposed loss of up to 1,400 jobs represents one of the clearest examples of how gambling companies are adjusting to the tax increases announced last year.

And with another Budget approaching, the industry's warnings about further job losses and closures will likely intensify.