REG - FlutterEntertainment - Flutter Response to Tax Changes within UK Budget

Flutter EntertainmentAnnouncement

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RNS Number : 1784J  Flutter Entertainment PLC  27 November 2025

New York, November 26, 2025: 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 EBITDA(1) impact of these changes for Flutter, before mitigation,
is expected to be approximately $320m in fiscal 2026(2) and $540m in fiscal
2027(3). 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
(http://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 (mailto:investor.relations@flutter.com)   Email: corporatecomms@flutter.com (mailto:corporatecomms@flutter.com)

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