Flutter to Cut 1,400 Jobs Amid UK Tax Hikes
Paddy Power owner cites increased remote gaming duty and 'fundamentally changed' economic model for restructuring and redundancies across eight locations.
Carla Rooney
Flutter, owner of Paddy Power, plans to cut up to 1,400 jobs.
The remote gaming duty in the UK surged from 21% to 40% earlier this year. Flutter boss Kevin Harrington declared the company cannot fully absorb the tax rises imposed on the gambling industry last year.
Harrington confirmed, "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 added, "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."
Job cuts represent approximately 15 per cent of the division's workforce. Redundancies are expected to affect roles in Leeds, Sunderland, London, Dublin, Gibraltar, Malta, Porto, and Cluj.
These plans remain subject to consultation. Horse racing was exempted from the tax increases.
Elsewhere, other major gambling firms also shed jobs. Bet365 cut 300 positions. Betfred closed 132 shops, resulting in 600 job losses.
Evoke, owner of William Hill, shut 270 shops. Entain, which owns Ladbrokes, cut around 500 jobs.
Gambling giants claim they faced tough choices because they manage retail and online divisions through the same balance sheet. The Government, however, argues that High Street closures are not its fault.
Speculation suggests the Government could increase the rate of machine games duty at the next Budget later this month.