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Read Full BioGambling giant Flutter Entertainment is taking a multi-pronged approach to addressing global cost increases and regulatory pressures.
In the past week, the company has announced job cuts in the UK, customer surcharge fees in the US, and a series of stock buybacks, all as part of a strategy to protect margins amid shifting market dynamics.
Flutter to Eliminate 250 Jobs, Mostly in Leeds
Almost all the job cuts will be in the company’s Leeds office, with an additional 10 positions being in Dublin. The eliminated positions are expected to come from Flutter’s technology and product teams. The move comes as the company seeks to consolidate several of its brands.
A Flutter spokesperson told the Yorkshire Post: “As part of a broader strategy to bring some of our brands onto a single tech platform – and against the backdrop of increasing cost and regulatory pressure – we have entered into consultation with a number of colleagues.”
“While we are working with those affected to explore redeployment opportunities wherever possible, it is likely that some roles will regrettably become redundant later this year.”
According to the news outlet, Flutter plans to make further investments in its safe gambling operation in Leeds.
UK Gambling Reform Spurs Change
Last month, the UK government submitted new legislation to modernize the country’s land-based casino laws. The proposed reforms are part of the “High Stakes: gambling reform for the digital age” program.
Key changes include allowing more machines on casino floors, adopting cashless payments on slots, and removing outdated machine-to-table ratios.
If approved by the UK legislature, the new rules could take effect as early as July. Stakeholders in land-based gambling operations have praised the move, seeing it as long overdue.
At the same time, the UK government is working towards tighter online gambling regulations. Planned changes include stake limits for online slots, stricter risk checks for high-spending users, and enhancements to responsible gambling tools.
While these changes are aimed at consumer protection, together with the land-based casino reforms, they are expected to increase costs for operators like Flutter, whose brands rely heavily on online revenue.
Different Approaches in the UK and US Amid Rising Costs
Flutter’s UK job cuts come as the company faces growing regulatory and cost pressures across key markets.
In the US, the company is taking a different approach to protect its margins by passing new costs on to consumers. Flutter announced that, starting September 1, the FanDuel platform will add a 50-cent surcharge on all bets in Illinois.
The move comes as a direct response to the new tax hike in the state. The Illinois legislature passed a new law that will require operators to pay 25 cents for every bet placed on their platforms up to the first 20,000 bets. After that threshold, the tax increases to 50 cents per bet.
As FanDuel is the market leader, a significant portion of bets on FanDuel will fall under the higher tax. The increase comes on top of the Illinois tax hike that took effect last year. It raised FanDuel’s gross gaming revenue tax from 15% to 40%. The company states that it absorbed the costs last year, but this year, it will pass them on to the consumer.
Investors and analysts perceived the move as positive, and the company’s stock remained stable. The company expects to retain its profit forecasts.
Buyback Program Signals Confidence to Investors
As Flutter restructures in the UK and adapts to rising costs in the US, the company is also signaling confidence to investors through a series of share buybacks.
Last September, the company announced a plan for a $5 billion multi‑year buyback program. This week, Flutter announced the acquisition and subsequent cancellation of its ordinary shares, aiming to repurchase up to $300 million worth of shares by June 30.
The $300 million phase follows a previous $350 million tranche that the company closed on March 31. Additionally, Flutter has announced plans for another $225 million in buybacks, to be completed between July and September 2025.
In total, the three tranches add up to $875 million returned to shareholders this year.
The advancement of buybacks suggests that Flutter’s leadership remains confident in the company’s long-term strategy, despite shifting dynamics in the UK and US.
