Paddy Power Owner to Cut 1,400 Jobs Over Tax Hikes
Flutter will cut up to 1,400 jobs in its UK and Ireland business. The company says it cannot fully absorb higher UK gambling taxes.
- 15% of Flutter's roughly 9,000 UK and Ireland staff face cuts.
- Cuts will hit Leeds, Dublin and UK-Ireland staff in Portugal and Romania.
- Remote gaming duty on online casino games rose from 21% to 40%.
- $80M to $90M is the expected cost of the restructuring.
Why it matters: The cuts are a test case for last year's gambling tax increases. Supporters of the increases and the industry disagree over what those taxes cost.
- 25% general betting duty on online bets begins next April, up from 15%.
- Flutter delisted from London in August; its shares now trade only in New York.
- Last month, 100 Paddy Power shops went under review, putting 400 jobs at risk.
How 3 sources split on this story
Where they split: The dispute is whether higher gambling taxes are worth the job losses the industry attributes to them.
Center coverage, 1 sources: The center frames the story as Flutter blaming tax rises, noting its London delisting and that undisclosed roles are at risk.
Left coverage, 1 sources: The left reports the cuts as a company response to tax increases, attributing the blame to Flutter's own statements.
Right coverage, 1 sources: The right sees the cuts as a direct result of what it calls punitive Labour tax hikes and warns against further rises.
What’s next: The next Budget, due later this month, may raise machine games duty. That is the tax on fruit and slot machines.
- Labour MP Alex Ballinger said: "It's time to raise taxes on harmful gambling machines."
- Betting firms are urging Chancellor John Healey not to raise the duty.
- Which specific roles will be cut has not been disclosed.
- Flutter claims the tax rise is feeding the unlicensed market, but none of the coverage measures that effect.
- How much of the cuts stems from taxes versus other business factors is unclear.
