Flutter Response to Tax Changes within UK Budget

Rhea-AI Summary

Flutter (NYSE: FLUT) responded to UK autumn budget changes raising online gaming taxes to 40% for iGaming (from April 2026) and 25% for sports betting (from April 2027). Flutter estimates a pre-mitigation adjusted EBITDA impact of approximately $320m in fiscal 2026 and $540m in fiscal 2027.

First-order mitigation is expected at about $85m in 2026 and $201m in 2027 (≈27% and 37% mitigation), with an expected 2027 exit mitigation of ~40%. Company cites scale and second-order mitigation opportunities, including potential market share gains and further operational efficiencies.

Positive

• First-order mitigation approximately $85m in 2026
• First-order mitigation approximately $201m in 2027
• 2027 exit mitigation expected ~40% of gross impact

Negative

• iGaming tax rate increases to 40% from April 2026
• Sports betting tax rate increases to 25% from April 2027
• Adjusted EBITDA impact before mitigation $320m in 2026
• Adjusted EBITDA impact before mitigation $540m in 2027
• Net adjusted EBITDA impact approx $235m in 2026
• Net adjusted EBITDA impact approx $339m in 2027

Insights

Strategic Financial Analyst

UK tax rises will materially reduce Flutter's adjusted EBITDA; near-term mitigation partly offsets but net effect is sizeable and adverse.

Flutter Entertainment quantifies a direct adjusted EBITDA impact of $320m in fiscal 2026 and $540m in fiscal 2027 before mitigation. The company expects first‑order mitigation to be about 27 of the 2026 hit and 37 of the 2027 hit, leaving an estimated net impact of $235m in 2026 and $339m in 2027. The firm also cites an expected 40 exit mitigation level by end of 2027 and highlights the potential for second‑order mitigation such as market share gains and operational efficiency.

The business mechanism is straightforward: statutory tax rates on iGaming rise by 19 points to 40 from April 2026, and sports betting rises by 10 points to 25 from April 2027, directly increasing duty expense and reducing adjusted EBITDA. Short‑term relief comes from reduced marketing, promotions and operating spend (first‑order mitigation), while longer‑term offsets rely on structural benefits from scale and market repositioning (second‑order mitigation). Risks include the size of the gross impact, the uncertain realization of second‑order effects, and the timing mismatch between the staggered implementation dates and mitigation measures.

Watch the realized mitigation percentages and the actual adjusted EBITDA outcomes across the two specified periods: the in‑year figures for fiscal 2026 and fiscal 2027, and the 2027 exit mitigation level. Near‑term monitoring should focus on disclosed reduction in promotional and marketing spend and any quantified disclosure of market share movements through the remainder of 2026 and into 2027. Expected time horizon for measurable outcomes is through the end of fiscal 2027.

NEW YORK, Nov. 26, 2025 (GLOBE NEWSWIRE) -- Flutter Entertainment plc (“Flutter”) (NYSE: FLUT; LSE: FLTR), the world's leading online sports betting and iGaming operator, notes changes to gaming taxation announced by the UK Government in its autumn budget.

The changes to UK online gaming taxation include:

• Effective from April 2026, iGaming increases 19 percentage points to 40 percent
• Effective from April 2027, Sports betting (ex-horseracing) increases 10 percentage points to 25 percent

The adjusted EBITDA¹ impact of these changes for Flutter, before mitigation, is expected to be approximately $320m in fiscal 2026² and $540m in fiscal 2027³. In the near term, Flutter expects the overall mitigation opportunity to be similar to recent precedent, with a greater relative opportunity for second order mitigation offsetting a moderately lower relative level of first order mitigation.

For both Online Sports betting and iGaming tax increases, direct first order mitigation, including reduced operational, promotional and marketing spend is expected to be approximately 20% of the gross impact in the first six months post implementation, rising to approximately 40% thereafter. Given the staggered implementation dates, this would result in the following expected approximate first order mitigation impact by year:

In $ millions except where stated otherwise	In-year impact
	2026		2027
Total adjusted EBITDA impact	320		540
First order mitigation	85		201
% mitigation	27	%	37	%
Net impact	235		339
2027 exit % mitigation			40	%

These tax increases will have a very significant impact on the overall market. As the largest scale operator, Flutter has the opportunity to deliver material second order mitigation benefits, including market share gains. We believe this, combined with additional operational efficiencies, will provide substantial opportunities to help offset the impact in the medium-term.

Kevin Harrington, UKI CEO, commented:

“Today’s tax increases are a very disappointing outcome and will have a significant adverse impact on our industry. 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 percent, 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.”

Footnotes

¹ Adjusted EBITDA is defined on a Group basis as net income (loss) before income taxes; other income, net; interest expense, net; depreciation and amortization; transaction fees and associated costs; restructuring and integration costs; impairment of property and equipment, intangible assets, right-of-use assets and goodwill and share based compensation expense. A reconciliation of our forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared of items that have not yet occurred, are out of our control, or cannot be reasonably predicted
² The 2026 adjusted EBITDA impact covers the change in online iGaming taxation over the period from April to December 2026
³ The 2027 adjusted EBITDA impact covers a full year impact of the change in online iGaming taxation and the change in online Sports betting taxation over the period from April to December 2027

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. In some cases, you can identify these forward-looking statements by the use of words such as “outlook”, “believe(s)”, ”expect(s)”, “potential”, “continue(s)”, “may”, “will”, “should”, “could”, “would”, “seek(s)”, “predict(s)”, “intend(s)”, “trends”, “plan(s)”, “estimate(s)”, “anticipates”, “projection”, “goal”, “target”, “aspire”, “will likely result”, and or the negative version of these words or other comparable words of a future or forward-looking nature. Such forward-looking statements are subject to various risks and uncertainties and there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The ability to predict market share gains, results or actual effects of our plans, mitigation efforts, market share gains and strategies is inherently uncertain. Accordingly, actual results may differ materially from those expressed in, or implied by, the forward-looking statements. In addition, we may incur additional or unexpected costs in connection with the matters discussed in this press release.

Factors that could cause Flutter’s results to differ materially from those described in the forward-looking statements can be found in Part I, “Item 1A. Risk Factors” of Flutter’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed with the Securities and Exchange Commission (the “SEC”) and other periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Flutter undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. 

About Flutter Entertainment plc

Flutter is the world’s leading online sports betting and iGaming operator, with a market leading position in the US and across the world. Our ambition is to leverage our size and our challenger mindset to change our industry for the better. By Changing the Game, we believe we can deliver long-term growth while promoting a positive, sustainable future for all our stakeholders. We are well-placed to do so through the distinctive, global advantages of the Flutter Edge, which gives our brands access to group-wide benefits, as well as our clear vision for sustainability through our Positive Impact Plan.

Flutter operates a diverse portfolio of leading online sports betting and iGaming brands including FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, Snai, tombola, Betfair, MaxBet, Junglee Games, Adjarabet and Betnacional. We are the industry leader with $14,048m of revenue globally for fiscal 2024, up 19% YoY, and $3,794m of revenue globally for the quarter ended September 30, 2025.

To learn more about Flutter, please visit our website at www.flutter.com.

Contacts:

Investor Relations:	Media Relations:
Paul Tymms, Investor Relations	Kate Delahunty, Corporate Communications
Ciara O'Mullane, Investor Relations	Lindsay Dunford, Corporate Communications
Chris Hancox, Investor Relations	Rob Allen, Corporate Communications
Email: investor.relations@flutter.com	Email: corporatecomms@flutter.com

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FAQ

What UK tax changes did Flutter announce affecting FLUT on Nov 26, 2025?

UK online gaming tax rises to 40% for iGaming (Apr 2026) and 25% for sports betting (Apr 2027).

How much adjusted EBITDA does Flutter (FLUT) expect to lose before mitigation in 2026 and 2027?

Flutter expects approximately $320m pre-mitigation in 2026 and $540m in 2027.

What first-order mitigation did Flutter forecast for FLUT after the UK tax changes?

First-order mitigation is forecast at about $85m in 2026 and $201m in 2027 (≈27% and 37%).

What is Flutter’s expected net adjusted EBITDA impact for FLUT in 2026 and 2027?

Net impact is approximately $235m in 2026 and $339m in 2027 after first-order mitigation.

Will the UK tax increases affect Flutter’s market position (FLUT)?

Company says its scale provides an opportunity for second-order mitigation and potential market share gains.

When do the new UK gaming tax rates take effect for FLUT operations?

iGaming rate effective April 2026; sports betting rate effective April 2027.