What tax changes did the UK Government announce for online gaming?

The UK Government announced that iGaming tax increases 19 percentage points to 40 percent, effective April 2026, and Sports betting (ex-horseracing) tax increases 10 percentage points to 25 percent, effective April 2027.

What is the estimated financial impact on Flutter before mitigation?

Flutter expects an adjusted EBITDA impact before mitigation of approximately $320 million in fiscal 2026, covering April to December 2026, and approximately $540 million in fiscal 2027, a full year for iGaming and the sports betting change over April to December 2027.

How much of the impact does Flutter expect to mitigate?

Direct first order mitigation, including reduced operational, promotional and marketing spend, is expected to be about 20% of the gross impact in the first six months after implementation, rising to about 40% thereafter. This equals approximately $85 million (27%) in 2026 and $201 million (37%) in 2027, with a 2027 exit mitigation rate of 40%. Flutter also expects second order mitigation, including market share gains, and additional operational efficiencies.

How did Flutter management respond to the tax changes?

Kevin Harrington, UKI CEO, called the tax increases a "very disappointing outcome" with a significant adverse impact on the industry. He argued they would benefit illegal, unlicensed operators and noted that at 40 percent the UK remote gaming duty is above the Netherlands. He said Flutter's scale, leading UK position and cost initiatives leave it well placed to navigate the changes.

Why was this information filed with the SEC?

The filing furnishes the RNS Announcement under Item 7.01 (Regulation FD Disclosure). The RNS Announcement was made to comply with UK Financial Conduct Authority Disclosure Guidance and Transparency Rules.

FLUT 8-K: Regulation FD

01—Abstract

Summary

Summary of the 8-K filed November 26, 2025. Cited figures are marked; the original filing is the authoritative source.

Flutter Entertainment plc (NYSE: FLUT; LSE: FLTR) furnished a Form 8-K on November 26, 2025 under Item 7.01 (Regulation FD Disclosure) attaching an RNS Announcement made in response to changes to gaming taxation announced by the UK Government in its 2025 autumn budget.

The announcement was issued to comply with UK Financial Conduct Authority disclosure requirements. The UK changes are: effective April 2026, the iGaming tax rate increases 19 percentage points to 40 percent; effective April 2027, the Sports betting (ex-horseracing) tax rate increases 10 percentage points to 25 percent. Flutter estimates the adjusted EBITDA impact before mitigation at approximately $320 million^a in fiscal 2026 (covering April to December 2026) and $540 million in fiscal 2027 (a full year for iGaming and the sports betting change over April to December 2027).

Expected first order mitigation is about $85 million^b (27%) in 2026 and $201 million (37%) in 2027, leaving net impacts of roughly $235 million and $339 million, with a 2027 exit mitigation rate of 40%. Flutter also expects material second order mitigation, including market share gains, plus operational efficiencies.

Kevin Harrington, UKI CEO, called the outcome "very disappointing" and warned that the increases will benefit illegal, unlicensed operators. The filing is primarily a disclosure of anticipated earnings headwinds for investors evaluating Flutter's UK business.

02—Key points

Key Highlights

UK iGaming tax rises 19 percentage points to 40 percent effective April 2026.
UK Sports betting (ex-horseracing) tax rises 10 percentage points to 25 percent effective April 2027.
Estimated adjusted EBITDA impact before mitigation: approximately $320 million in fiscal 2026 and $540 million in fiscal 2027.
First order mitigation expected at about $85 million (27%) in 2026 and $201 million (37%) in 2027.
Estimated net impact after first order mitigation: approximately $235 million in 2026 and $339 million in 2027.
Expected 2027 exit mitigation rate of 40%, with greater reliance on second order mitigation such as market share gains.
Filed under Item 7.01 (Regulation FD) with the RNS Announcement furnished as Exhibit 99.1.

03—Questions

Frequently Asked Questions

What tax changes did the UK Government announce for online gaming?
The UK Government announced that iGaming tax increases 19 percentage points to 40 percent, effective April 2026, and Sports betting (ex-horseracing) tax increases 10 percentage points to 25 percent, effective April 2027.
What is the estimated financial impact on Flutter before mitigation?
Flutter expects an adjusted EBITDA impact before mitigation of approximately $320 million in fiscal 2026, covering April to December 2026, and approximately $540 million in fiscal 2027, a full year for iGaming and the sports betting change over April to December 2027.
How much of the impact does Flutter expect to mitigate?
Direct first order mitigation, including reduced operational, promotional and marketing spend, is expected to be about 20% of the gross impact in the first six months after implementation, rising to about 40% thereafter. This equals approximately $85 million (27%) in 2026 and $201 million (37%) in 2027, with a 2027 exit mitigation rate of 40%. Flutter also expects second order mitigation, including market share gains, and additional operational efficiencies.
How did Flutter management respond to the tax changes?
Kevin Harrington, UKI CEO, called the tax increases a "very disappointing outcome" with a significant adverse impact on the industry. He argued they would benefit illegal, unlicensed operators and noted that at 40 percent the UK remote gaming duty is above the Netherlands. He said Flutter's scale, leading UK position and cost initiatives leave it well placed to navigate the changes.
Why was this information filed with the SEC?
The filing furnishes the RNS Announcement under Item 7.01 (Regulation FD Disclosure). The RNS Announcement was made to comply with UK Financial Conduct Authority Disclosure Guidance and Transparency Rules.

04—Continue

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