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Flutter confirms 1,400 job cuts, cites UK betting taxes ahead of crunch budget

Paddy Power owner says tax hikes have 'fundamentally changed' industry economics, with 240 Dublin roles at risk and cuts in Leeds, Portugal and Romania

By LineZotpaper

Published20 October 2026

Updated20 October 2026

Read Time3 min

Sources7 outlets

Flutter Entertainment, the owner of Paddy Power and SkyBet, has announced plans to cut up to 1,400 jobs across its UK and Ireland division, blaming the 'significant increase' in betting and gaming duties imposed in last year's Autumn Budget. Around 240 jobs are at risk in Dublin, with major cuts expected in Leeds and at Flutter's support hubs in Portugal and Romania. The announcement lands days before Chancellor John Healey's first budget, intensifying a political debate over gambling taxation.

Flutter said the restructuring affects around 15 per cent of its 9,000-strong UK and Ireland workforce and will cost between $80 million and $90 million. Kevin Harrington, Flutter's UK and Ireland chief executive, said the tax hikes had 'fundamentally changed the economic model of the regulated betting and gaming industry in the UK while helping to fuel the unlicensed, unregulated market'.

The company expects to take a one-off hit of between $80 million and $90 million from the redundancy programme. Despite the scale of the layoffs, Flutter shares rose more than 2 per cent in early US trading, suggesting investors welcomed the cost-cutting.

The cuts deepen a difficult period for the gambling sector across the UK and Ireland. Entain, the owner of Ladbrokes, outlined plans last month to cut around a fifth of its customer care roles. Betfred announced 132 shop closures in July, affecting 600 workers, while Bet365 unveiled around 340 redundancies in September. Flutter's announcement follows its own review of 100 Paddy Power betting shops, which put around 400 roles under threat, though the company said those shops were not affected by the latest round.

The political response has been divided. Stewart Kenny, the founder of Paddy Power, has accused the industry of 'scaremongering' to avoid paying higher levies. One industry insider, who asked not to be named, told The Guardian the cuts ran alongside Flutter's post-2026 integration of SkyBet, arguing government policy changes 'ran alongside existing integration of its brands with inevitable job cuts'.

The Office for Budget Responsibility previously warned that the tax hikes could drive punters towards illegal gambling websites, reducing expected tax receipts by around £500 million. The Social Market Foundation has called for a doubling of Machine Games Duty from 20 per cent to 40 per cent in the upcoming budget. Six gambling bosses, including Harrington, recently wrote to Healey warning that further increases could cost the sector up to 16,000 jobs, alongside 1,470 shop closures and 34 casino closures.

Analysis

Why This Matters

The cuts test the UK government's argument that its tax policies can be absorbed without major job losses in a significant industry.
As the largest operator, Flutter's restructuring signals a deeper contraction that could reshape high-street betting and the online market.
The political row over who is to blame, tax policy or corporate strategy, will be a flashpoint in the upcoming budget negotiations.

Background

The UK gambling sector is facing its most substantial tax overhaul in a generation. The 2025 Autumn Budget raised remote gaming duty from 21 per cent to 40 per cent and imposed a future hike on online general betting duty from 15 per cent to 25 per cent. The industry, which takes around £13 billion annually from British customers, has consistently warned that the higher costs would lead to closures and redundancies. Flutter delisted from the London Stock Exchange in August to trade solely in New York.

Key Perspectives

[Flutter Entertainment/Industry]: Argue the tax rises have fundamentally changed the economics of the regulated market, forcing cost reductions to stay competitive. They warn further levies, such as a rise in Machine Games Duty, could cost 16,000 jobs and shut more than 1,400 shops and 34 casinos. They claim higher taxes also fuel the unlicensed, unregulated market. [Government/Critics]: Paddy Power founder Stewart Kenny has accused the industry of 'scaremongering' to avoid higher taxes. The Social Market Foundation argues for higher levies on adult gaming centres, framing them as a public-health priority and a revenue opportunity. [Industry Insiders/Analysts]: Some note Flutter's integration of SkyBet involved inevitable job cuts regardless of tax policy, suggesting the company is using the tax rises as cover for strategic restructuring.

What to Watch

John Healey's first budget statement and whether it raises Machine Games Duty.
The impact of the April 2027 online betting duty increase from 15 per cent to 25 per cent.
The growth rate of unlicensed gambling websites and whether the tax reforms undermine official revenues as the OBR has warned.

Sources

Paddy Power cuts 1,400 jobs and blames betting tax rises · BBC News
Paddy Power owner blames tax rises for plan to shed up to 1,400 jobs · UK news | The Guardian
Paddy Power owner to axe 1,400 jobs after Labour gambling tax raid · City AM
Paddy Power owner blames tax rises for plan to shed up to 1,400 jobs · Business | The Guardian
Paddy Power cuts 1,400 jobs and blames betting tax rises · BBC News
Flutter to cut 1,400 jobs, with 240 Dublin jobs at risk · RTÉ News
Paddy Power owner blames tax rises for plan to shed up to 1,400 jobs · World news | The Guardian

Checked

12 claims in this story checked against 4 sources: 7 supported.

Show each claim

Partly supportedFlutter confirmed 1,400 job cuts ahead of the budget.BBC News: “Paddy Power-owner Flutter has announced plans to cut up to 1,400 jobs”
SupportedFlutter blamed the planned cuts on UK gambling tax increases announced in last year’s Autumn Budget.RTÉ News: “Flutter said the overhaul is part of efforts to mitigate costs following a “significant increase” in the UK gaming taxes from last year’s autumn budget.”
SupportedKevin Harrington said tax increases had “fundamentally changed” the industry’s economic model and helped fuel the unlicensed market.RTÉ News: “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.”
SupportedAround 240 Dublin jobs are at risk.RTÉ News: “It is expected that 240 jobs in Dublin will be at risk”
Partly supportedMajor cuts are expected in Leeds and at Flutter’s support hubs in Portugal and Romania.Business | The Guardian: “Many of the job cuts are expected to fall in Leeds, which was SkyBet’s key centre of operations.”
SupportedThe announcement came days before Chancellor John Healey’s first budget.Business | The Guardian: “The announcement is likely to echo loudly in the Treasury a week before John Healey’s first budget.”
SupportedThe restructuring affects around 15% of Flutter’s 9,000-strong UK and Ireland workforce.RTÉ News: “It is understood the move will hit around 15% of workers in the UK and Ireland, where Flutter employs around 9,000 staff.”
Partly supportedFlutter expects a one-off hit of between $80 million and $90 million from the redundancy programme.RTÉ News: “Flutter said its restructuring plan is likely to cost between 80 and 90 million US dollars (€71m - €80m)”
SupportedFlutter shares rose more than 2% in early US trading, suggesting investors welcomed the cost-cutting.Business | The Guardian: “Its shares rose more than 2% in early trading in the US as investors looked forward to the prospect of a leaner business with fewer employees.”
Not in the sourcesThe insider described the integration as Flutter’s “post-2026 integration of SkyBet.”Business | The Guardian: “One industry insider, who asked not to be named, said Flutter’s absorption of SkyBet, which it bought in 2026, was likely to be a contributing factor.”
SupportedThe Office for Budget Responsibility warned that illegal gambling could reduce expected tax receipts by around £500 million.City AM: “The Office for Budget Responsibility warned in November 2025 that gamblers moving towards illegal gambling websites in the wake of hikes could also reduce the expected tax take by around £500m.”
Partly supportedSix gambling bosses warned that further tax increases could cost up to 16,000 jobs, alongside 1,470 shop closures and 34 casino closures.City AM: “Six gambling bosses, including Harrington, wrote to the Chancellor last week urging him against further hikes and to halt next year’s planned increase to betting duty. They warned doing so could lead to as many as 15,9000 job losses, as well 1,470 shop closures and 34 casino closures.”