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

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

The review covers almost one fifth of Paddy Power’s 506-shop retail estate. The brand operates 310 shops in the UK, including Northern Ireland, and 196 in the Republic of Ireland, with more than 2,300 people employed across the two markets.

Flutter has not named the individual locations under review or said how many potential closures would fall in Britain rather than Ireland. Staff affected by the process are expected to be offered redeployment opportunities where possible, with any closures under consideration taking place before the end of 2026.

The retail review follows a major increase in UK gambling taxation. Remote Gaming Duty rose from 21% to 40% on 1 April 2026, while a new 25% remote betting rate is due to take effect from 1 April 2027. Remote bets on UK horseracing will remain taxed at 15%.

Traditional over-the-counter bets placed in licensed betting shops were not included in the tax increase. Even so, Flutter operates its retail and online businesses within the same wider group, meaning the higher cost of operating online in Britain affects the company’s broader UK cost base.

Flutter estimates that the changes to UK iGaming taxes will reduce adjusted EBITDA by about $320 million in 2026 before mitigation. It expects roughly $85 million of first-order savings to offset part of that impact.

The company is also carrying out a wider cost transformation. Flutter said phase one is on track to deliver more than $300 million in savings by 2027, alongside approximately $200 million in additional savings linked to UK gaming tax mitigation. A second phase is targeting a further $500 million in gross operating cost and capital expenditure savings by 2029.

The latest review follows Paddy Power’s decision in October 2025 to close 57 shops across the UK and Ireland, affecting 247 positions.

Other operators are making similar moves. Betfred announced plans in July to close 132 shops and cut around 600 jobs, while William Hill owner Evoke has also reduced its retail estate during 2026.

The pattern points to a broader restructuring of Britain’s high street betting industry rather than an isolated Paddy Power problem.

For poker players, the important point is that Flutter has made no announcement suggesting that the Paddy Power retail review will result in cuts to PokerStars UK.

Flutter is simultaneously restructuring its British poker business around PokerStars. Betfair customers gained access to PokerStars through the new PokerStars on Betfair product on 13 August, with Paddy Power and Sky Poker also scheduled to host the PokerStars product later in 2026.

The strategy is designed to concentrate players around the PokerStars Network and improve liquidity, game availability and tournament prize pools. It also makes PokerStars an increasingly central part of Flutter’s UK poker operation.

Flutter’s latest financial results underline why efficiency has become a priority. UK and Ireland revenue reached $971 million in Q2 2026, up 4% year on year. iGaming revenue increased 7%, while sportsbook revenue fell 2%. International adjusted EBITDA dropped 19% to $476 million, with Flutter citing the UK tax increase and higher FIFA World Cup marketing spend among the main pressures.

For players comparing UK poker sites, there is no current evidence that the Paddy Power shop review changes the PokerStars product itself. What it does show is how aggressively Flutter is reshaping costs while consolidating its poker brands around a single network.