Flutter (Paddy Power) to Cut 1,400 Jobs, Blames UK Betting Tax Rises

3-line summary

• Flutter Entertainment, owner of Paddy Power, Sky Bet, and Betfair, said it will cut 1,400 jobs, affecting UK- and Ireland-based staff as well as British and Irish workers at its sites in Portugal and Romania; the specific roles at risk were not disclosed. Flutter employs 28,500 people worldwide, including 9,000 in the UK and Ireland.
• The company blamed tax increases on online casino and sports betting introduced in last November's Budget (with an exemption for horse racing); Flutter UK and Ireland CEO Kevin Harrington said the rise had "fundamentally changed" the economic model of the UK betting and gaming industry and had helped "fuel the unlicensed, unregulated market," adding "we cannot fully absorb a rise of this magnitude without reducing our fixed cost base."
• Flutter said Tuesday it continues to expect the tax increases to have "a very significant impact on the overall market"; the company delisted from the London Stock Exchange in August, with its shares now trading solely in New York.

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