Paddy Power owner Flutter is cutting 1,400 jobs in its UK and Ireland business, blaming last year’s hike in gambling duties.
The gambling giant – which owns Sky Bet, Betfair and Tombola – will cut around 15 per cent of its workforce in the division, adding to a growing number of jobs lost since last year’s Budget.
Flutter UK and Ireland chief executive Kevin Harrington said the gambling industry ‘cannot fully absorb a rise of this magnitude without reducing our fixed cost base.’
He said the tax hikes have ‘fundamentally changed the economic model of the regulated betting and gaming industry in the UK while helping to fuel the unlicensed, unregulated market.’
Redundancies include roles based in Leeds, Sunderland, London and Dublin, as well as in European locations such as Gibraltar, Malta, Porto and Cluj in Romania.
Shutting shop: The betting group has already announced the closure of shopsÂ
The former Chancellor Rachel Reeves increased taxes on remote gaming from 21 per cent to 40 per cent in her last Budget, and the levy on online sports betting from 15 per cent to 25 per cent, which comes into effect next April.Â
Flutter – which this year scrapped its London Stock Exchange listing – has previously said the increase would cost it just over £400 million in 2027.
The announcement follows the firm’s review of 100 of its Paddy Power shops in the UK and Ireland, which is set to lead to 400 job cuts.
A series of gambling firms have announced job cuts in recent months, including Bet365, which plans to axe 300 jobs at its Stoke-on-Trent headquarters.Â
Betfred said in July it would close 132 shops, resulting in 600 job losses. Meanwhile, William Hill owner Evoke has shut 270 shops since the Budget. Â
The Government has argued that High Street closures are not its fault, but gambling giants say they faced tough choices because they manage retail and online divisions through the same balance sheet.
New Prime Minister Burnham has also set out plans to ‘stop unwanted vape and betting shops taking over high streets.’
The Government plans to revoke part of the 2005 Gambling Act, which restricts the ability of councils to reject new betting shops and 24-hour slot machine shops even where there is a backlash from the local community.
But he has been warned a fresh attack on gambling could cost nearly 16,000 jobs as the owner of Ladbrokes axed another 400 staff following the last tax raid.
The Prime Minister and his Chancellor John Healey are considering doubling machine gaming duty (MGD) – the tax levied on slot machines – to 40 per cent in the Budget next month.
Flutter’s Harrington said: ‘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.
‘We remain confident that we are well placed to benefit from share gains given our position as the largest scale operator in the UK.’
The Betting and Gaming Council (BGC) estimates that the number of jobs already lost or at risk in the sector since last year’s Budget is around 12,400 jobs.
BGC chief executive Grainne Hurst said Flutter’s update was ‘another devastating blow to workers and families across our sector, and further evidence of the real-world consequences of the Government’s tax rises.’
She added: ‘These are not just numbers. They are people facing uncertainty over their livelihoods as major British employers are forced to make painful decisions in response to mounting tax pressures.
‘The warnings could not be clearer. Businesses are already cutting jobs, closing betting shops and scaling back investment. Further tax rises will only accelerate that damage, putting thousands more jobs at risk, threatening high streets and handing an advantage to the unsafe, unregulated illegal gambling market.’
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Freetrade
Freetrade
Investing Isa now free on basic plan
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
