Flutter Sees Opportunity in UK Tax Squeeze
Flutter Entertainment has suggested that the UK’s recent gambling tax increase could, in the long run, work to its advantage — with the operator’s outgoing chief executive claiming some competitors are already stepping back from the market.
According to a report by Casino.org, Flutter’s CEO Peter Jackson made the comments during the company’s second-quarter earnings call. “We do think we’re beginning to see some of our competitors pulling back as we anticipated,” Jackson said, adding that Flutter would be “well positioned to capitalize on those” wider consequences of the tax shift.
The higher rate, which came into force in April, played a significant part in a 45% decline in Flutter’s adjusted EBITDA for Q2. Investment in prediction markets and World Cup marketing also dented profitability during the period.
Despite those pressures, management argued that Flutter’s scale, product range and technology put it in a stronger position than many rivals to absorb the extra costs. The company said it is shifting focus towards headcount savings rather than cutting marketing spend, in order to maintain its standing in the market.
Sky Bet Bounces Back
Elsewhere in the results, Flutter reported encouraging signs at Sky Betting & Gaming, which had suffered short-term disruption following a platform migration also completed in April. Jackson noted that performance “recovered strongly in June” as customers engaged with a broader product offering following the transition.
Flutter’s wider UK and Ireland business also showed robust growth, driven in particular by its casino operations. The group said it has a new operating model in place for the region.
£500m Savings Target on the Horizon
Looking further ahead, Flutter is targeting $500 million in gross savings by 2029 as part of the next phase of its group-wide transformation programme. Management said those savings should help fund growth investment while protecting margins in more established markets like the UK.
For UK players, the picture is broadly one of consolidation — a dominant operator expecting to grow even larger as smaller rivals find the regulatory and tax environment increasingly difficult to navigate.
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