Flutter Entertainment has announced plans to eliminate up to 1,400 positions across its UK and Ireland division, citing higher taxes introduced by the UK government and mounting operating costs.
The proposed reductions represent roughly 15% to 16% of the division's workforce of around 9,000 employees, according to reports by BBC and NEXT.
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The company has not disclosed which specific roles will be eliminated.
Tax Burden Behind the Restructuring
Kevin Harrington, chief executive of Flutter's UK and Ireland division, pointed to the tax changes as a major factor behind the restructuring.
He said the company could not absorb the full financial impact without reducing fixed costs.
"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 argued the changes had altered the economics of the regulated industry and encouraged activity outside the regulated market.
"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," he said.
He added that the company had warned about the consequences when the tax measures were announced last year.
"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 planned reductions, he expressed confidence in the company's competitive position.
"We remain confident that we are well placed to benefit from share gains given our position as the largest scale operator in the UK," he said.
The tax changes include an increase in Remote Gaming Duty from 21% to 40%, effective April 2026.
General Betting Duty is scheduled to rise from 15% to 25% in April 2027, according to NEXT. io.
The measures were announced in the UK budget last November, with an exemption for horse racing noted by the BBC.
Flutter previously estimated that the reforms would 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.
Earlier measures were expected to recover $201 million, while the company now expects restructuring costs of $80 million to $90 million in the fourth quarter of 2026.
Outlet Closures and Wider Industry Pressure
The proposed job cuts follow a separate announcement that up to 100 retail outlets would close in Britain and Ireland amid economic uncertainty.
Other operators have also announced outlet closures as the industry prepares for possible additional tax increases in the next UK budget.
One potential measure under discussion is an increase in Machine Games Duty to 40%, double the existing rate cited in industry coverage.
Regulus Partners, an independent analysis firm, estimated that more than 4,000 retail outlets could close if further pressures make them unprofitable.
That could potentially reduce annual income from betting-related activity for the horse racing sector by £92 million.
Flutter is also dealing with leadership changes and pressure on its share price.
Peter Jackson stepped down as chief executive in September 2026 after nearly nine years in the role, and Dan Taylor assumed leadership at the beginning of October.
NEXT. io reported that Flutter's share price had fallen approximately 69% over the preceding year.
The company also faces increased competition, regulatory uncertainty and restrictions affecting online gaming in Brazil.
Despite those challenges, Flutter's UK and Ireland division recorded revenue growth of 4% to £971 million in the second quarter of 2026.
According to NEXT. io, interactive gaming revenue increased 7%, while sports-related revenue declined 2%.
Flutter is scheduled to publish its third-quarter 2026 financial results on November 4, 2026.
