Flutter Entertainment and Upcoming Tax Changes
NEW YORK, Nov. 26, 2025 (GLOBE NEWSWIRE) -- Flutter Entertainment plc (“Flutter”) (NYSE: FLUT; LSE: FLTR), the leading global online sports betting and iGaming operator, has acknowledged the significant changes to gaming taxation presented by the UK Government in its recent autumn budget.
Key Changes to UK Gaming Taxation
The latest changes to online gaming taxation in the UK are substantial:
New Tax Rates
Starting April 2026, the tax on iGaming will rise dramatically, increasing from its previous rate to 40%, an elevation of 19 percentage points. Following that, beginning April 2027, sports betting (excluding horse racing) will see its tax rate increase by 10 percentage points, resulting in a new tax rate of 25%.
Financial Implications for Flutter
The adjusted EBITDA impact of these tax modifications for Flutter, prior to any mitigation efforts, is projected to be around $320 million in fiscal 2026 and approximately $540 million in fiscal 2027. Flutter anticipates that the mitigation opportunities available will be comparable to recent precedents, allowing for a significant degree of second-order mitigation to offset the initial impact of these tax changes.
Mitigation Strategies
In the face of increased taxation, Flutter is planning direct first-order mitigation strategies. This involves a decreased spend on operations, promotions, and marketing, which is expected to account for about 20% of the total gross impact in the first six months following the implementation of these tax increases. This figure is projected to rise to approximately 40% as the years progress.
Anticipated Market Effects
The implementation of these tax increases is poised to considerably affect the market landscape. As Flutter is one of the largest operators in the industry, there lies a unique opportunity to leverage second-order mitigation benefits that could lead to market share expansion. By introducing additional operational efficiencies, Flutter aims to navigate through the tax modifications effectively.
CEO's Perspective on the Changes
Kevin Harrington, the CEO of UKI, expressed dissatisfaction regarding the tax increases, calling them a significant setback for the sector. He noted that such changes could inadvertently boost the competitiveness of illegal operators, who do not pay taxes or invest in safer gambling practices. He emphasized that the UK’s remote gaming duty would surpass figures in other markets, potentially leading to a rise in illegal gambling.
Despite these challenges, Harrington remains confident that with Flutter's scale and industry-leading position in the UK, along with the proactive cost initiatives in place, the company is well-prepared to adapt to the new tax environment.
About Flutter Entertainment
Flutter is recognized as the world's foremost online sports betting and iGaming operator, commanding a leading position in the United States and various global markets. The company is committed to leveraging its formidable size and entrepreneurial spirit to initiate positive changes within the industry. Their mission, encapsulated in their mantra of "Changing the Game," aims to foster sustainable growth that benefits all stakeholders.
Notably, Flutter boasts a diverse array of high-profile online sports betting and iGaming brands, including FanDuel, Sky Betting & Gaming, Sportsbet, and PokerStars, among others. In fiscal 2024, Flutter recorded impressive global revenues of $14,048 million, marking a 19% increase year-on-year, with $3,794 million in revenues for the quarter ending September 30, 2025.
Frequently Asked Questions
What are the new tax rates for Flutter in the UK?
The tax on iGaming is set to increase to 40%, while the sports betting tax will rise to 25% starting in April 2027.
How will these tax changes affect Flutter financially?
Flutter anticipates a total adjusted EBITDA impact of approximately $320 million in fiscal 2026 and $540 million in fiscal 2027 due to these tax increases.
What mitigation strategies is Flutter implementing?
Flutter plans to reduce operational, promotional, and marketing expenses as part of its mitigation strategy, reaching up to 40% of the gross impact over time.
What does the CEO of Flutter say about the tax increases?
Kevin Harrington described the tax increases as disappointing, arguing that they may unintentionally benefit illegal gambling operators.
What is Flutter's market position?
Flutter is the global leader in online sports betting and iGaming, with a strong market presence and a commitment to sustainable and innovative practices.
