Flutter Entertainment, owner of Paddy Power, Sky Bet and Betfair, will cut up to 1,400 jobs across the UK and Ireland, with additional layoffs possible at sites in Portugal, Romania, Malta and Gibraltar. Chief Executive Kevin Harrington said the company "cannot fully absorb" tax rises on online gambling imposed by the British government.
The layoffs affect staff in Leeds, Dublin, London and Sunderland. Flutter employs 28,500 people globally, including 9,000 in the UK and Ireland. The company has not disclosed which specific roles will be eliminated.
Harrington argued the tax increases had "fundamentally changed" the economic model of the UK betting industry. The government announced the increases in last year's Budget, raising the remote gaming duty on online casino betting from 21% to 40%, effective in April. General betting duty on online sports betting is set to rise from 15% to 25% in April 2025. Horse racing remains exempt.
Flutter claims the impact will reduce its underlying profit by $320m this year and $540m by 2027 before any mitigation measures. The restructuring itself will cost between $80m and $90m.
A government spokesperson said the job cuts were "a commercial decision for Flutter, not the UK government," while acknowledging it would be "a difficult time for the workers." MPs previously dismissed betting industry warnings about job losses and closures as "scaremongering."
Flutter posted a $299m pre-tax loss for the three months to June, compared to a $205m profit in the same period last year. However, UK and Ireland revenues rose 4% over that quarter, driven by strong online gambling games growth.
Entain, owner of Ladbrokes, announced 500 job cuts during the summer. Betting firms had consistently warned that the cost increases would trigger redundancies and betting shop closures.
The company delisted from the London Stock Exchange in August. Its shares now trade exclusively on the New York exchange.