Flutter Entertainment, owner of Paddy Power, Sky Bet and Betfair, plans to cut up to 1,400 jobs across its operations following tax rises on online gambling announced by the UK government last year.
The cuts will affect staff based in Leeds and Dublin most severely, with additional impact on workers at Flutter's offices in London, Sunderland, Malta, Gibraltar, Portugal and Romania. Flutter did not disclose which specific roles face elimination. The company employs 28,500 people globally, including 9,000 in the UK and Ireland.
Flutter boss Kevin Harrington said the company "cannot fully absorb" the tax increases without reducing its fixed cost base. He argued the rises had "fundamentally changed" the economic model of UK betting and gaming and had helped "fuel the unlicensed, unregulated market." Flutter expects the tax increases to have "a very significant impact on the overall market."
The restructuring will cost between $80m and $90m. Flutter has previously claimed UK tax rises would reduce its underlying profit by $320m this year and $540m in 2027 before any mitigation measures.
Last year's Budget introduced tax rises on online casino and sports betting with an exemption for horse racing. 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% in April next year, though betting shop duty remains at 15%.
A government spokesperson said the job cuts represent "a commercial decision for Flutter, not the UK government" but acknowledged it "will be a difficult time for the workers."
Betting firms had warned the tax increases would trigger job losses and shop closures, but MPs dismissed these warnings as "scaremongering." During the summer, Entain, which owns Ladbrokes, announced 500 job cuts. Flutter delisted from the London Stock Exchange in August and now trades solely in New York. In its most recent quarterly results, Flutter reported a $299m pre-tax loss globally, though UK and Ireland revenues rose 4%.