Flutter’s Paddy Power cuts up to 1,400 jobs, blames betting tax rises for market impact
Planned job reductions
Flutter has announced plans to cut as many as 1,400 jobs. The company owns Paddy Power, and its boss says the tax changes are a major factor behind the restructuring.
Flutter said on Tuesday that the increases are expected to have a substantial impact on the overall market. The company did not provide further details of the job cuts in the report.
Tax changes take effect
The government announced higher taxes on online casino and sports betting in last November’s Budget. Horse racing was exempted. Some changes began in April. Remote gaming duty, charged on online casino betting, rose from 21% to 40%.
Company cites fixed costs
Harrington, who leads Flutter’s UK and Ireland business, said the company needed to lower its fixed-cost base to respond to the increase. He said the restructuring was intended to position the business for the future. Betting firms had warned that higher costs could bring job losses and betting shop closures. MPs dismissed those warnings as “scaremongering.”
Key points
- Flutter plans to cut up to 1,400 jobs across its business.
- The company says higher gambling taxes will significantly affect the market.
- Remote gaming duty rose from 21% to 40% in April.
- Betting firms’ earlier warnings about job losses and shop closures were dismissed by MPs as “scaremongering.”