Flutter's UK iGaming Revenue Rises 12% as 40% Duty Cuts International Profit by 14%

^{Sky Betting and Gaming's Leeds base. Flutter's UK and Ireland casino arm grew strongly in the third quarter while the higher gaming duty cut into profit. (Photo: Mark Stevenson / Wikimedia Commons)}

Flutter Entertainment's UK and Ireland iGaming revenue grew 12% year on year in the third quarter of 2026, reaching $540 million, according to the group's results published on 4 November. The same quarter saw the near doubling of UK remote gaming duty from 21% to 40% cut adjusted EBITDA in Flutter's International division by 14% to $435 million.

It is the clearest early read on how a large UK operator is coping with the higher tax on online casino. Customers kept playing, but far less of each pound reached the bottom line. The figures cover the three months to 30 September 2026 and come from Flutter's Q3 earnings release.

Casino Growth Offsets a Weaker Sportsbook

Revenue in the UK and Ireland region, which Flutter calls UKI, rose 4% to $889 million. Sportsbook revenue fell 6% to $309 million, even though handle grew 5%, because results went the customers' way early in the football season. Flutter put the swing in sports results at 210 basis points in the region.

Casino did the heavy lifting. UKI average monthly players in iGaming rose 20%, which the company linked to cross-selling during the FIFA World Cup and new releases, including The Big Drop jackpot. That follows a period when Flutter's first-quarter report had raised concerns about the UK market, so a double-digit casino quarter will be read closely by rivals.

UKI iGaming revenue grew 12% on a 20% increase in average monthly players, but the 40% duty took 280 basis points off the International adjusted EBITDA margin.

The Cost of the Duty Rise

International adjusted EBITDA fell from $505 million to $435 million, and the margin dropped 280 basis points to 18.0%. Flutter said the main driver was the increase in UK remote gaming duty, partly offset by UK tax mitigation savings and cost cuts in Brazil. Cost of sales rose 490 basis points to 53% of revenue for the same reason.

MPs approved the increase despite lobbying from operators and warnings from Gibraltar-based firms about the impact on the industry. Flutter's numbers now put a figure on the effect for one of the sector's biggest names, and more operators will report their own versions in the coming weeks.

Restructuring and a Lower Outlook

Chief executive Dan Taylor said the group had recently announced a significant restructuring of its UKI business. In the release, he said the changes would 'right-size the UKI business going forward' and position Flutter 'to take market share in the post UK tax increase environment'. The release did not give job numbers for the restructuring.

At group level, Flutter reported revenue of $3.87 billion, up 2%, and a net loss of $1.15 billion, driven by $873 million of non-cash impairment charges linked to Brazil and a $105 million rise in legal loss contingencies. Adjusted EBITDA fell 25% to $360 million.

Flutter also cut its 2026 guidance. It now expects group revenue of $17.61 billion and adjusted EBITDA of $2.495 billion at the midpoint, reductions of $300 million and $160 million. It has paused its share repurchase programme while it reduces debt. The company said early fourth-quarter trading was in line with expectations on an underlying basis, though sports results have again been unfavourable.

For UK players, the immediate effect is likely to show up in how generous operators can afford to be. Higher duty leaves less room for bonuses and promotions, and Flutter's results suggest the largest operators are leaning on cost savings and cross-sell rather than margin to absorb it.