Paddy Power owner Flutter has said that changes to gambling laws are leading to slower growth in its UK business.
The Government announced increases to gambling taxes in November’s Budget, which betting operators have said are adding to costs and could lead to job losses.
Flutter, which switched its primary listing from London to New York last year, said that the changes had affected its UK business with revenue slipping to £3.54billion in 2025, from £3.59billion, as most other divisions saw growth.
It said it was putting ‘robust’ plans in place to mitigate the impact of higher taxes, but any further review ‘could materially impact our business, financial condition and results of operations.’
Flutter warned higher taxes are slowing growth and is also being hit by prediction markets in the US
Last October, Paddy Power said it was closing 57 of its 608 betting shops across the UK and Ireland, putting almost 250 jobs at risk.
It came as Flutter reported an overall slowdown in sales amid fears that the rising popularity of prediction markets, such as Kalshi and Polymarket, is taking the shine off its US sports gambling business.
Prediction markets allow customers to trade on the outcome of real-world events. Customers place billions of dollars in ‘yes and no’ bets every week on the online exchanges, which offer hundreds of bets on an array of topics
Chief executive Peter Jackson said Flutter has ‘a clear plan in place to navigate recent US trends’ and there was ‘significant runway for growth’.
The group, which owns Betfair, Sky Bet and FanDuel in the US, said revenues for 2025 were up 17 per cent to £12.2billion, but below its most recent forecast of £12.4billion, which had already been downgraded from £12.8billion in November.
It swung to a pre-tax loss of £89.7million last year, down from £11.9million profits in 2024, but underlying earnings rose 27 per cent to £616.5million.
Shares in London fell nearly 12 per cent to 8,008p after reporting results after the market closed on Friday.
While it expects slower growth this year, Flutter said this summer’s World Cup was a ‘great opportunity’.
It said: ‘Our global footprint, including the US where the tournament is primarily being held, means we are the best-placed operator to capitalise on this global opportunity.’
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