Flutter Reviews Up to 100 Paddy Power Shops as UK Costs Rise

Flutter Entertainment is reviewing up to 100 Paddy Power betting shops across the UK and Ireland, placing approximately 400 jobs at risk as the gambling group responds to higher taxes and rising operating costs.

The review, confirmed on September 3, could affect close to one fifth of Paddy Power's retail estate. The brand operates 506 betting shops across the two markets, including 310 in the UK and Northern Ireland and 196 in the Republic of Ireland. More than 2,300 people work across the retail business.

Flutter has not identified which locations are under review or how potential closures would be split between the UK and Ireland. The company said affected employees will be consulted and offered redeployment opportunities where possible. Any closures are expected before the end of 2026.

Flutter has cited rising energy bills, rents, business rates, competition, economic uncertainty and the shift toward online betting as factors behind the review. Higher UK gambling taxes have added another significant cost.

Remote Gaming Duty increased from 21% to 40% on April 1, 2026. From April 1, 2027, a new 25% General Betting Duty rate will apply to most remote betting, while remote bets on UK horse racing will remain at 15%.

The Remote Gaming Duty increase does not apply directly to traditional over-the-counter bets in Paddy Power shops. However, Flutter operates its retail and digital businesses within the same group, meaning higher online taxation still affects the economics of its wider UK operation.

Flutter previously estimated that the UK tax changes would reduce adjusted EBITDA by approximately $320 million in 2026 before mitigation. It expects first-order measures to offset around $85 million.

The retail review sits within a much broader efficiency programme at Flutter.

The company said in its second-quarter results that phase one of its cost transformation programme is on track to deliver more than $300 million in savings by 2027, alongside approximately $200 million in additional savings tied to UK gaming tax mitigation.

A second phase is targeting another $500 million in gross operating cost and capital expenditure savings by 2029. Flutter said the programme will focus on reducing duplication, improving technology efficiency, aligning functions and making greater use of AI.

The review follows an earlier reduction in Paddy Power's retail footprint. In October 2025, the company announced plans to close 57 betting shops, affecting 247 positions.

Other bookmakers are making similar moves. Betfred began a consultation over 132 shop closures and more than 600 jobs in July 2026, while Evoke, owner of William Hill and 888, has also reduced its retail estate.

For poker players, the key point is that Flutter has announced no comparable cuts to PokerStars. The Paddy Power review concerns retail betting shops, not Flutter's online poker sites.

At the same time, Flutter is changing how poker is distributed across its UK brands. Betfair customers gained access to PokerStars through PokerStars on Betfair on August 13, 2026, while Paddy Power and Sky Poker are scheduled to host the PokerStars product later in the year.

The strategy makes PokerStars the central poker platform across several Flutter brands. Its PokerStars Network model is designed to combine liquidity and support larger player and prize pools.

Flutter's second-quarter figures show the wider pressure behind the search for efficiency. UK and Ireland revenue rose 4% year on year to $971 million, with iGaming revenue up 7% and sportsbook revenue down 2%. International adjusted EBITDA fell 19% to $476 million, with Flutter citing the UK Remote Gaming Duty increase and FIFA World Cup marketing as key factors.

There is currently no indication that the Paddy Power review will directly affect PokerStars players. Instead, it underlines a broader strategic shift at Flutter toward lower costs, tighter integration and greater use of shared technology across its major gambling brands.