Flutter's Q1 Report Raises Concerns for UK Market

^{Flutter Entertainment reported 17% year-on-year growth, but not even that can save its UK-facing businesses from cuts. (Image: Flutter.com)}

The timing of Flutter’s financial report is significant because it’s one of the first major operators to do so in the wake of Remote Gaming Duty increasing from 21% to 40%. With Evoke, one of Flutter’s main competitors, recently announcing betting shop closures, the report is another chance for investors to gauge the impact of tax increases.

Flutter's Growing Globally, but UK Operations a Concern 

The latest financials from Flutter show 17% year-on-year growth across the group, with iGaming revenue in Q1 up 28%. However, in his note to shareholders, Jackson warned that the company’s UK operations are set to become “less profitable”.

Despite the stark projection, Jackson’s tone was optimistic, stating that Flutter’s market competitiveness was “stable” ahead of the gambling tax increase. That, he believes, will carry Flutter through the coming quarter and allow his team to implement “first-order mitigation” measures.

Jackson stopped short of saying exactly what those measures will be, but he confirmed that there will be adjustments to “marketing” and “generosity” strategies. 

Market Conditions Make Bonuses Less Lucrative

Long-time players will have seen online casino promotions change over the last two decades. Where once it was possible to get welcome bonuses worth upwards of £500, weekly reload offers and loyalty rewards, there’s much less free credit on offer.

This is partly down to changing economic conditions, but gambling regulations have also impacted the market. Operators have changed the way they market their promotions to align with UK Gambling Commission (UKGC) regulations.

Wagering requirements have also been capped at 10x, and, most recently in January 2026, cross-product promotions were banned. For companies such as Flutter, which own platforms offering casino gaming, sports betting and other products, these rules reduce their ability to offer bonuses.

These regulations have made the UK gambling market safer and fairer for players. However, they’ve also squeezed operators in certain areas. Now, with Remote Gaming Duty set at 40%, major operators like Flutter are being forced to act.

Practically, there may be fewer bonuses across Flutter’s network of UK casino sites, which includes Paddy Power, Betfair, Sky Bet and PokerStars. There may even be a reduction in advertising spend, particularly at major sports events in the UK.

Unlicensed Casinos Also a Threat

Flutter’s CEO also noted the threat of unlicensed online casinos. In the company’s financial report, he welcomed the government’s £26 million commitment to shutting down unlicensed sites.

While the threat of unlicensed casinos is real, Jackson’s main concern is his company’s profitability in the UK. Cost-cutting has already shown to be effective in the wider gambling sector, with Entain posting 13% growth in Q1, thanks, in part, to increased market share.

Entain’s financial report also states that it expects to mitigate 50% of the increased tax burden, having previously projected 25%. The closure of 45 Ladbrokes betting shops owned by Entain will, in part, contribute to these mitigations.

Although Flutter hasn’t made any announcements with regard to betting shop closures, changes to the UK-facing arm of its business are coming. This is yet another sign that the cost-cutting will shape the UK gambling market in 2026.