Flutter Plans 1400 Job Cuts After UK Tax Increases

Flutter Entertainment plans to eliminate up to 1,400 jobs across its UK and Ireland operations as higher UK taxes on regulated gaming activities increase operating costs. The company announced the restructuring on October 20, 2026, affecting employees in Britain and Ireland as well as British and Irish staff working at its sites in Portugal and Romania.

According to NEXT.io, Flutter's UK and Ireland division employs approximately 9,000 people, meaning the planned reductions could affect about 16% of its workforce in the region. Employees in locations including Leeds, Dublin, Gibraltar, Malta, Portugal and Romania are affected, although the company has not disclosed which specific roles will be eliminated.

The company attributed the restructuring to changes in UK taxation announced in the government's November 2025 Budget. The measures increased duties on online gaming and sports betting, while horse racing received an exemption from the changes described by the BBC.

Kevin Harrington, chief executive of Flutter's UK and Ireland division, said the company would provide support to affected employees while reorganizing its operations.

"My immediate focus is providing the necessary support for all of our impacted colleagues and guiding our teams through what we know is going to be a difficult and challenging period for all concerned." Harrington said.

Harrington said the tax increases had altered the economics of operating within the regulated market and contributed to the growth of unlicensed operators. He argued that the company could not absorb the additional costs without reducing its fixed expenses.

"The material increase in betting and gaming duties announced in the UK Budget last year has fundamentally changed the economic model of the regulated betting and gaming industry in the UK while helping to fuel the unlicensed, unregulated market." Harrington said.

The company had warned about the financial impact of the tax changes when they were announced in 2025. Harrington said the scale of the increases required a restructuring intended to position the business for future operations.

"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." Harrington said.

Despite the reductions, Harrington expressed confidence in the company's competitive position in the UK market.

"We remain confident that we are well placed to benefit from share gains given our position as the largest scale operator in the UK." Harrington said.

The tax changes are expected to have a substantial financial impact on Flutter. According to figures previously disclosed by the company and reported by NEXT.io, the changes were projected to reduce adjusted earnings before interest, taxes, depreciation and amortization by approximately $320 million in fiscal 2026 and $540 million in fiscal 2027 before mitigation measures.

Flutter had estimated that its initial cost-saving measures would recover $201 million of the impact. The company expects restructuring expenses associated with the current job cuts to reach $80 million to $90 million in the fourth quarter of 2026.

The tax increases are being implemented in stages. Remote Gaming Duty rose from 21% to 40% in April 2026, while General Betting Duty is scheduled to increase from 15% to 25% in April 2027. NEXT.io also reported that a further increase in Machine Games Duty to 40% could be considered in the government's autumn Budget.

The restructuring comes amid changes in Flutter's senior leadership and a steep decline in its share price. According to NEXT.io, the company's shares had fallen approximately 69% over the preceding year. Peter Jackson announced his departure as chief executive, and Dan Taylor formally took over the position at the beginning of October 2026.

Flutter's UK and Ireland division recorded revenue growth of 4% to £971 million in the second quarter of 2026, according to NEXT.io. Online gaming revenue increased 7%, while sports betting revenue declined 2% over the same period.

Flutter is scheduled to publish its third-quarter 2026 financial results on November 4, providing its next scheduled update on the company's performance.