Flutter Entertainment, the owner of Paddy Power, Betfair and Sky Bet, has announced plans that could result in up to 1,400 redundancies across its UK and Ireland business, citing increases in UK gambling taxation.
The company announced the proposed restructuring on Tuesday 20 October 2026. It said the changes form part of its efforts to mitigate higher betting and gaming duties announced in the UK government's 2025 Autumn Budget.
Which employees could be affected?
Flutter said the proposals would affect staff in Leeds and Dublin, alongside employees working for its UK and Ireland business at hubs in Porto, Portugal, and Cluj-Napoca, Romania. The division employs approximately 9,000 people, meaning the maximum proposed reduction would represent nearly 16% of its workforce.
The redundancies are proposals subject to consultation; the company has not confirmed that all 1,400 positions will be eliminated.
Company links restructuring to tax changes
Flutter attributed its decision to the rise in UK gambling duties announced in November 2025. Remote gaming duty increased from 21% to 40% in April 2026, while a rise in the tax rate for certain online sports betting from 15% to 25% is scheduled for April 2027.
Kevin Harrington, Flutter's UK and Ireland chief executive, said the company could not fully absorb the tax increase without reducing its fixed cost base. That is the company's explanation for the restructuring, rather than an independently established assessment of every factor behind the decision.
Restructuring costs
In a filing with the US Securities and Exchange Commission, Flutter estimated that the restructuring would cost $80 million to $90 million, primarily in severance, benefits and related costs. The company expects to substantially complete the plan by the end of 2026, subject to applicable consultation and notification requirements.
Wider debate over gambling taxes
The announcement adds to debate about the effects of gambling taxation on employment, public revenues and the regulated betting industry. Gambling operators have warned about costs and competition from unlicensed providers, while supporters of higher duties argue that the industry should contribute more in tax. The announcement does not, by itself, establish the overall economic impact of the government's changes.