Flutter Entertainment has warned that new UK gaming tax rises set out in the government’s Autumn Budget will dent its earnings significantly from 2026, even after mitigation.
Under the plans set out by Chancellor Rachel Reeves, the iGaming duty rate will rise by 19 percentage points to 40% from April 2026, while online sports betting will increase by 10 points to 25% from April 2027.
The online gambling giant, which owns brands including Paddy Power and Sky Bet, is estimating a pre-mitigation adjusted EBITDA hit of about $320 million in fiscal 2026 and $540m in fiscal 2027.
The Dublin-based business said it expects to offset part of that through “first order” actions such as cutting operational, promotional and marketing spend, reducing the net adjusted EBITDA impact to roughly $235m in 2026 and $339m in 2027.
It has also argued that its scale could unlock further “second order” benefits like market share gains.
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The tax move follows a period of wider UK focus on reshaping remote gambling duties, including previous government consultation on a simplified single tax for online gambling.
Industry giant Flutter, which moved its primary listing to the New York Stock Exchange from the London Stock Exchange in May 2024, has not seen its share price hugely affected in recent days, with it rising by nearly 2% to just under $2.
“Today’s tax increases are a very disappointing outcome and will have a significant adverse impact on our industry,” said Kevin Harrington, Flutter Entertainment’s UK&I CEO.
“The Chancellor rightly wants to address harm, but these changes will hand a big win to illegal, unlicensed gambling operators who will become more competitive overnight. These black market operators don’t pay tax and don’t invest in safer gambling.
“At 40%, the UK’s remote gaming duty is now above countries such as the Netherlands, where a recent tax increase saw a rise in illegal gambling and a fall in Government receipts.
“Despite this impact, I am confident that through both our scale and leading position in the UK, as well as the proactive cost initiatives that we are taking, we are well placed to navigate through today’s changes.”