Paddy Power cuts 1,400 jobs amid online betting tax hikes
Flutter Entertainment, owner of Paddy Power and Sky Bet, is cutting 1,400 jobs following the UK government's online gambling tax increases.
Stock photo for illustration only, not from the actual event
- Paddy Power to cut 1,400 jobs globally
- Impacted by UK government online casino and betting tax rises
- Flutter warns of significant financial hit to underlying profits
- Online gaming duty increased from 21% to 40% in April
Flutter Entertainment, the parent company of major betting brands including Paddy Power and Sky Bet, has announced a major restructuring plan involving 1,400 job cuts worldwide. The company cited the UK government's budget tax increases on online gambling as the primary catalyst, warning of a severe overall market impact.
Staff located in Leeds and Dublin, alongside employees supporting the UK and Ireland operations at Flutter's sites in Portugal and Romania, will face the heaviest impact. BBC understands that personnel based in London, Sunderland, Malta, and Gibraltar could also be affected, though specific roles at risk have not yet been disclosed by management.
Stock photo for illustration only, not from the actual event
In its latest financial figures, Flutter reported a pre-tax loss of $299 million (£224 million) for the three months leading up to June across its global operations, compared to a profit of $205 million during the same period last year. Total sales climbed 3% to $4.3 billion, while UK and Ireland revenues grew 4% driven by strong performance in online gaming.
Certain online gambling tax hikes introduced in last year's budget officially took effect in April. Remote gaming duty applied to online casino betting surged from 21% to 40%. Meanwhile, general betting duty on sports betting profits remained at 15% for high-street shops but is scheduled to increase from 15% to 25% online by April next year.
"We continue to expect these tax increases to have a very significant impact on the overall market."
Flutter Entertainment
The UK government's decision to raise online betting taxes illustrates a broader trend of tightening fiscal regulations on high-revenue digital gambling sectors. For major corporations like Flutter, absorbing these escalating operational costs requires strategic restructuring and cost mitigation. This economic pressure also aligns with Flutter's earlier corporate shift to delist from the London Stock Exchange in August, moving its share trading exclusively to New York, highlighting the shifting regulatory landscape for multinational betting enterprises.
A UK government spokesperson maintained that the layoffs represent a commercial decision made entirely by Flutter rather than a direct mandate, while acknowledging that the transition period will be challenging for affected workers. Flutter estimates its restructuring process will cost between $80 million and $90 million, having previously projected that upcoming tax burdens could erode underlying profits by $320 million this year and up to $540 million by 2027.
Source: BBC Business
Found something wrong in this article? Report an issue with this article
Comments
Leave a Comment