Flutter Entertainment UK and Ireland (UKI) CEO Kevin Harrington has said the UK government has “gone too far” with its gambling tax hike plans.
Speaking to the Business Post, Harrington suggested the incoming increases to remote gaming duty and remote general betting duty would open the door for illegal operators to take advantage in the market.
Chancellor Rachel Reeves announced in her Autumn Budget that remote gaming duty will jump from 21% to 40% in April, with general betting duty rising from 15% to 25% in April 2027.
The general betting duty jump did see UK horseracing carved out, with the rate remaining at 15%.
Harrington, who became UKI CEO in January 2025, said the new tax rates were at the “very high end of what we had expected or feared”.
The operator runs the Paddy Power, Sky Betting & Gaming, tombola and Betfair brands in the UK.
“I think, personally, they’ve gone too far […] and really given an open door to the illegal market,” he remarked.
“I think it’s opening a door for illegal operators to have an unfair advantage in the market.
“I think you do need a blend of smart regulation and sensible taxation rates. We owe our fair share in terms of paying taxes. I believe that today we already pay a large amount and a significant amount.
“But the government took a position. I think gambling is seen as a bit of a free hit. I’d urge the government to reconsider and to think about the consequences of it.
“And that’s one thing we’ll be monitoring – the rise of the illegal market. It probably represents about 9% of the UK market today. And I want consumers to be gambling in the regulated market where they have the protections.”
Upon the Budget being announced on 26 November, Flutter issued an RNS in which it said total adjusted EBITDA would suffer a $540m hit pre-mitigation in 2027 due to the tax increase.
Mitigation plans should bring that net impact down to $339m, bosses said. The company also outlined how it aims to take market share as smaller brands shutter.
This was echoed by Entain, the parent company behind Ladbrokes and Coral.
Former CFO and deputy CEO of Entain Rob Wood told EGR earlier this month that it was the business’ “intent” to take market share post-tax hikes.
Harrington continued: “That is $540m extra tax we have to pay in the UK, of which we said we’ll mitigate 40%. It was at a very high end of our expectations. I think it’s gone too far.
“I think it will reshape the market. I think we’re best positioned in terms of the scale we have. But it will be interesting to see how it affects the market over the next couple months and years.”
The post Flutter UKI CEO says government has “gone too far” with tax hikes first appeared on EGR Intel.
Kevin Harrington says policy will open door for black market operators, but he remains confident Flutter’s suite of brands can take market share
The post Flutter UKI CEO says government has “gone too far” with tax hikes first appeared on EGR Intel.