Paddy Power cuts 1,400 jobs and blames betting tax rises

Flutter, the parent company of Paddy Power, has announced its intention to lay off up to 1,400 employees due to increased taxes imposed on the gambling industry last year. The job cuts will primarily impact staff located in the UK and Ireland, as well as British and Irish workers at Flutter's facilities in Portugal and Romania. However, the specific roles that will be affected remain undisclosed.

The government increased taxes on online casino and sports betting through the Budget in November last year, with an exception for horse racing. Flutter's CEO, Kevin Harrington, stated that the increase in taxes has "fundamentally changed" the economic model of the UK betting and gaming industry. He argued that the rise in taxes has contributed to the growth of unlicensed and unregulated markets.

Harrington also noted that his company continues to expect these tax increases to have a significant impact on the overall market. Flutter, which includes subsidiaries Sky Bet and Betfair, employs a total of 28,500 people worldwide, with 9,000 of them working in the UK and Ireland. Harrington, who leads the betting giant's UK and Ireland operations, explained that their inability to fully absorb the substantial tax rise without reducing their fixed cost base has led to the decision to restructure the business. This restructuring is necessary to position the company optimally for the future.

In a move that has further impacted the UK, Flutter delisted from the London Stock Exchange in August, and its shares are now exclusively traded on the New York stock market.