Flutter cuts 1,400 jobs and blames UK gambling tax rises

Flutter Entertainment has announced plans to cut up to 1,400 jobs across its UK and Ireland division, attributing the restructuring directly to significant increases in gambling taxation introduced in public budgets. The announcement, reported on Tuesday, 20 October 2026, places roughly 15 per cent of the betting giant's domestic workforce at risk of redundancy and arrives as the wider Business sector reels from mounting fiscal pressures.

The company, which owns high-street bookmaker Paddy Power alongside online brands Sky Bet, Betfair, and Tombola, confirmed that the redundancies will affect employees in Leeds, Dublin, and Sunderland, as well as staff based at hubs in Porto, Portugal, and Cluj-Napoca, Romania. The firm employs 28,500 people globally, with 9,000 working across the UK and Ireland.

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Paddy Power owner blames tax hikes for 1,400 UK job cuts

According to The Guardian, the decision follows public budget measures enacted by former chancellor Rachel Reeves, which saw remote gaming duty—levied on online casino games and slots—rise from 21 per cent to 40 per cent in April 2026. Furthermore, general betting duty on online sports wagers is scheduled to increase from 15 per cent to 25 per cent in April 2027. Kevin Harrington, chief executive of Flutter UK and Ireland, stated that the company could not absorb such magnitude without trimming its fixed-cost base.

"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."

Kevin Harrington, Flutter UK and Ireland chief executive, via The Guardian

The announcement has intensified a fierce national debate regarding the true drivers of contraction in the gaming sector. While corporate entities point squarely to government intervention, The Guardian noted that Paddy Power founder Stewart Kenny accused the industry of “scaremongering” about job losses to avoid tax burdens. Conversely, Grainne Hurst, chief executive of the Betting and Gaming Council, defended operators by arguing that businesses are facing genuine distress from compounding fiscal pressures, citing independent modelling that warns of further widespread store closures.

Competitors including William Hill, Betfred, and Entain have reported extensive shop closures and workforce reductions over the past year. The Treasury faces additional scrutiny as discussions continue over potential increases to machine games duty (MGD) ahead of a forthcoming budget under Chancellor John Healey.

Government officials maintained that Flutter’s downsizing remains a commercial decision rather than a direct mandate from Westminster, though Downing Street acknowledged the difficulty facing affected workers. Meanwhile, BBC reports indicate that Flutter's overarching corporate entity recently delisted from the London Stock Exchange in August to trade solely in New York, following global pre-tax losses for the quarter ending in June.

Consultation periods between Flutter management and employee representatives are currently underway.