Flutter’s UKI Revenue Falls for 2025 Amid Difficult Regulatory Changes

Flutter Entertainment’s UK and Ireland (UKI) revenue dropped in 2025, in a year in which the terms of the White Paper were implemented and ahead of impending online tax increases.

Flutter UKI posted revenue of $3.54 billion (£2.63 billion) for 2025, which was down from the $3.59 billion generated in 2024. The UK and Ireland is not Flutter’s biggest market, with Flutter’s FanDuel brand driving US revenue to account for 42% of the group’s total revenue; Flutter UKI makes up 22% of the total. Flutter’s overall revenue for the year was $16.4 billion, up 17%.

White Paper reality

In 2025, Flutter had to manage the implementation of terms proposed in the government’s 2023 Gambling White Paper, which set out more than 60 proposals to update the country’s gambling laws.

Flutter said this led to player restrictions during the year. Among the terms recommended were affordability checks, improved identification checks, a statutory levy, and a cap on the maximum stakes on online slots at £5 for older adults and £2 for younger adults.

Flutter also began to put in place mitigation measures ahead of upcoming tax increases. From April 1 2026, remote gaming duty for UK operators, paid on online casino bets, will increase from 21% of gross gambling yield to 40%.

On top of this, general betting duty, paid on online sports bets, will go up from 15% to 25% in April 2027; bets on horseracing will be exempt from this.

Stages of mitigation

Flutter said the first round of mitigation included a reduction in cost, including reduced operational, promotional and marketing spend. The second round of mitigation will include the UK’s projected overall market size decline, and Flutter’s projected market share growth.

When Flutter announced its Q3 2025 results in November, it mentioned the group “would likely benefit from the consolidation of share among sub-scale operators over time.”

In a letter to shareholders following the release of Flutter’s annual results for 2025, Flutter CEO Peter Jackson said:

“We remain optimally positioned to successfully manage tax changes in the UK, leveraging the benefits of our scale, diversification, and the durability of our business model.

“The first phase of UK gambling tax increases will see iGaming rates almost double to 40 percent from April 2026, and we are already executing robust first-order mitigation plans, while leveraging our scale advantages will capture regulated market share over time.”

In October, ahead of the tax increases being announced, Flutter told staff it would be closing 57 of its Paddy Power shops across the UK and Ireland.

According to various media reports, these shop closures will put 247 jobs at risk. Flutter said 28 betting shops in Great Britain will close, along with another 28 in Ireland, and one in Northern Ireland.

Results speak for themselves

Regardless of how Flutter is aiming to frame it, a drop in revenue in the UK and Ireland is a sign the group is struggling to make progress in that particular market.

With the size of its US business now being close to double that of its UK and Ireland business, combined with the impending online tax increases, the US is far more likely to be Flutter’s predominant point of focus going forward.

The projected greater market share in the UK for Flutter in the wake of smaller operators consolidating or folding in the wake of the tax increases could well come to fruition, but ultimately, if Flutter cannot increase revenue or profit in the UK, this will not provide an ideal return for shareholders.