Paddy Power owner Flutter plans 1,400 job cuts, blaming taxes
Flutter, the company that owns Paddy Power and Sky Bet, plans to cut up to 1,400 jobs in its UK and Ireland business. It blames higher British taxes on online gambling. A government spokesperson called the cuts a commercial decision for the company.
Flutter Entertainment, which owns Paddy Power, Sky Bet and Betfair, plans to cut up to 1,400 jobs in its UK and Ireland business, blaming higher gambling taxes, The Guardian, The Independent and BBC News reported Tuesday.
The cuts will mostly hit staff in Leeds and Dublin, along with UK and Ireland workers at Flutter hubs in Porto, Portugal, and Cluj-Napoca, Romania, The Independent and BBC News reported. The BBC said staff in London, Sunderland, Malta and Gibraltar could also be affected. The plans are still subject to consultation, according to The Independent.
Flutter employs about 9,000 people in the UK and Ireland and 28,500 worldwide, BBC News reported. The restructuring will cost $80 million to $90 million, the company said.
The company pointed to tax increases announced in the 2025 autumn budget by Rachel Reeves, who was then the chancellor. Remote gaming duty, the tax on online casino games, rose from 21% to 40% in April. The duty on online sports bets is due to rise from 15% to 25% in April 2027, BBC News reported.
"As we warned a year ago, we cannot fully absorb a rise of this magnitude without reducing our fixed cost base," said Kevin Harrington, Flutter's UK and Ireland chief executive.
A government spokesperson called the cuts a "commercial decision for Flutter, not the UK government," the BBC reported, adding, "we understand this will be a difficult time for the workers."
Not everyone accepts the tax explanation. Paddy Power founder Stewart Kenny has accused the industry of "scaremongering" about jobs, The Guardian reported. An unnamed industry insider said folding Sky Bet into Flutter's other brands also played a part. Leeds was Sky Bet's main base.
The news comes a week before Chancellor John Healey's first budget, The Guardian said. He is weighing a higher tax on slot machines.
What we know: Flutter plans up to 1,400 job cuts in its UK and Ireland business and blames tax increases.
What we don't: Which roles will go, and whether the coming budget will raise gambling taxes again.
Where outlets agree The Guardian, The Independent and BBC News all report that Flutter plans up to 1,400 job cuts and blames UK gambling tax increases.
Where they differ The Independent says the cuts will hit about 15% of Flutter's UK and Ireland staff, while The Guardian says more than 10% of that workforce could lose their jobs.