Paddy Power to close up to 100 betting shops as budget tax rises deliver another blow to racing’s finances
A third major operator is cutting its retail network this year, and each closure chips away at racing’s own funding.
Flutter Entertainment, owner of Paddy Power, announced on 3 September that it will close up to 100 betting shops across the UK and Ireland by the end of the year. That is roughly a fifth of its retail estate of 506 shops (310 in the UK, 196 in Ireland). Around 400 jobs are at risk.
Why it’s happening
Flutter pointed to rising costs, fierce competition and economic uncertainty, as well as the ongoing shift to online betting. It also cited a material impact from higher gambling taxes announced in last year’s UK Budget. Remote Gaming Duty rose from 21 percent to 40 percent in April 2026. A further rise, in remote betting duty to 25 percent, is due in April 2027.
The third operator this year
Paddy Power is not the first to cut back. Betfred announced the closure of 132 shops at the end of July. The industry estimates that move alone will cost British racing around £4 million in lost Levy and media rights payments. William Hill, now trading as Evoke, closed 270 shops earlier in the year following a strategic review driven by the same budget pressures.
Goodbody analyst David Brohan described the closures as part of a wider strategy to soften the tax impact. He warned they are unlikely to be the last, particularly if gaming duty rises further.
Why this matters for racing
Betting shop revenue feeds racing through the Levy and media rights payments. A shrinking retail network therefore means a shrinking source of funding, even though bets on UK horseracing itself remain taxed at a protected 15 percent rate.
Arena Racing Company chief executive Martin Cruddace has already warned publicly that further tax rises could be “truly grave” for the sport. He told a parliamentary reception that racing should not become collateral damage in the wider tax debate.
Nearly 500 shops gone in a year
| Operator | Shops closed | When |
|---|---|---|
| Evoke (William Hill) | 270 | Earlier in 2026 |
| Betfred | 132 | End of July |
| Paddy Power (Flutter) | Up to 100 | By end of 2026 |
| Total | ~500 |
A rough estimate rather than an official figure, but a striking one all the same.
Flutter’s incoming chief executive, Dan Taylor, takes up his role on 1 October. He inherits a retail strategy already reshaped by the tax rise before he even arrives.
