Flutter UK & Ireland Considers 100 Paddy Power Shop Closures Over Tax Impact

Flutter UK and Ireland (UKI) is conducting a strategic review that may lead to the closure of up to 100 Paddy Power betting shops across both the UK and Ireland, with approximately 400 jobs at risk. The review follows a material increase in gambling taxes and sustained operational cost pressures, marking a significant potential contraction of one-fifth of Flutter UKI's current retail estate.

The Transaction: Review of Paddy Power Retail Estate

Flutter UKI confirmed it is examining the future of its high street betting operations. If all 100 shops under consideration close, this would affect about 20% of its outlets in both markets. The operator currently runs just over 500 shops, staffed by more than 2,000 employees within its retail division. The review comes on the heels of a previous wave of closures in November 2025, when 57 Paddy Power shops were shuttered due to what management cited as "increasing cost pressures and challenging market conditions."

"We are incredibly proud of our high street estate, and it remains a key part of our business in communities across the UK and Ireland. Unfortunately, we have had to take the extremely difficult decision to conduct this review," a Flutter UKI spokesperson stated.

The company has stated that all affected staff will be offered "redeployment opportunities where possible" and support during the transition period for those impacted.

Flutter UKI and the Higher Gambling Taxes Impact

The current review is directly linked to tax policy changes introduced in recent UK Budgets. In November of the previous year, then-Chancellor Rachel Reeves raised remote gaming duty from 21% to 40%, effective 1 April 2026. General betting duty—applicable outside domestic horseracing—is scheduled to increase from 15% to 25% in April 2027. On publication of the budget, Flutter, which is listed on the New York Stock Exchange, projected a $235 million hit to adjusted EBITDA in 2026 even after cost mitigation steps (which included operational, promotional, and marketing reductions). Without these measures, the impact would have been $320 million. For 2027, Flutter anticipates an adjusted EBITDA reduction of $339 million after mitigation, compared to an original hit of $540 million. The operator has directly linked these outcomes to the changes in remote gaming and betting duties.

Broader Industry Response to Tax Hikes and Regulation

Flutter UKI's decision mirrors a broader industry retrenchment as betting shops face mounting fiscal and regulatory burdens. In July, Betfred announced the closure of more than 130 shops—an estimated 11% of its retail footprint—also citing online tax increases. This has put close to 600 Betfred jobs at risk. According to Betfred CEO Joanne Whittaker, "The current fiscal and regulatory environment has made it impossible to keep trading all our shops."

William Hill's parent company Evoke has similarly announced the closure of 270 shops, while Entain is enacting global headcount reductions impacting 500 jobs. The sector is additionally watching the new government under Prime Minister Andy Burnham, who has called for consultation on the possible removal of the 'aim to permit' clause in the Gambling Act 2005—a move that could further impact retail betting.

Potential Impact of Doubling Machine Games Duty

Regulatory pressures may escalate further as anti-gambling groups are urging government to double machine games duty (MGD) from 20% to 40% on Category B machines across betting shops, casinos, bingo halls, and Adult Gaming Centres. Advisory firm Regulus Partners has projected that if this policy is enacted, as many as 4,000 out of just over 5,000 existing betting shops in Britain could close.

The contrast with historic shop numbers is sharp. In 2019, betting shops numbered about 8,300 across Britain—already half the 1960s peak of 16,000 that emerged following the legalisation of licensed betting offices in 1961.

Employee Support and Redeployment Efforts

Flutter UKI has stated a commitment to supporting Paddy Power staff affected by the potential closures. Efforts will be made to offer redeployment to other roles within the business where feasible. The operator underscores the importance of retail operations in local communities, but cites uncontrollable external cost factors, competition, and digital migration as persistent challenges alongside fiscal policy.

What This Means for Land-Based Betting Markets

The current round of reviews and potential closures is being watched closely by regulation and b2b observers. The outcome may influence future investment and operating strategies, not only for Flutter UKI but for other retail operators grappling with similar pressures in the UK and Ireland.

The industry awaits final outcomes of Flutter UKI's review, further fiscal developments relating to machine games, and any regulatory changes prompted by ongoing government consultation.