Flutter, the owner of Paddy Power, has announced plans to cut up to 1,400 jobs across its UK, Ireland, Portugal, and Romania operations, citing the inability to fully absorb recent tax increases on the gambling industry. The company’s CEO for UK and Ireland, Kevin Harrington, stated that the tax hikes, introduced in last November's Budget, have fundamentally altered the economic model of the UK betting and gaming sector and contributed to growth in the unregulated market.
The tax changes include a rise in remote gaming duty from 21% to 40% and an upcoming increase in online sports betting duty from 15% to 25%. Flutter reported a $299 million pre-tax loss for the quarter ending June, compared to a $205 million profit the previous year, despite a 4% revenue increase in the UK and Ireland. The restructuring is expected to cost $80 million to $90 million and aims to reduce fixed costs to position the business for future sustainability.
Read the full story: BBC UK News.
Source: BBC UK News. Aggregated summary, not independent reporting.