Flutter Entertainment, owner of Paddy Power, Sky Bet and Betfair, plans to cut up to 1,400 jobs across its UK and Ireland operations. The company cited recent tax rises on online gambling as the reason for the restructuring.
Chief executive Kevin Harrington said Flutter "cannot fully absorb" the tax hikes announced in last year's UK Budget. The government raised remote gaming duty on online casino betting from 21% to 40%, with the increase taking effect in April. General betting duty on online sports betting is set to rise from 15% to 25% next April. Horse racing remains exempt from the rises.
Staff based in Leeds and Dublin will be most affected, along with workers at Flutter's sites in Portugal and Romania. The BBC understands cuts could also reach offices in London, Sunderland, Malta and Gibraltar. Flutter has not disclosed which specific roles are at risk.
Flutter employs 28,500 people globally, including 9,000 in the UK and Ireland. The restructuring plan will cost the company between $80m and $90m.
Harrington argued that the tax increases had "fundamentally changed" the economic model of the UK betting and gaming industry. He claimed the rises had helped "fuel the unlicensed, unregulated market." In its most recent results, Flutter reported a $299m pre-tax loss for the three months to June, compared to a $205m profit in the same period last year. UK and Ireland revenues rose 4% over the period.
The company has previously claimed UK tax rises would reduce underlying profit by $320m this year and $540m in 2027 before any restructuring savings. A government spokesperson said the job cuts were a "commercial decision for Flutter" but acknowledged "this will be a difficult time for the workers." MPs had dismissed earlier warnings from betting firms about job losses as "scaremongering."
Entain, owner of Ladbrokes, announced 500 job cuts during the summer. Flutter delisted from the London Stock Exchange in August and now trades solely on the New York exchange.