Paddy Power said it will reduce its headcount by approximately 1,400 positions and attributed the move to higher taxes on gambling products that were introduced in last year’s Budget.
Company statement
The bookmaker has publicly linked the job losses to rises in levies applying to online casino products and sports betting. It said these tax changes have altered the economics of parts of its business and prompted the decision to shrink staffing levels.
Tax changes
Last year's Budget included measures that increased the tax burden on certain forms of online gambling, notably casino-style games and sports wagers. The government announced those changes as part of its fiscal package; Paddy Power cites them as the principal reason for the cuts.
Implications
The planned redundancies will reduce employment at the operator and are likely to have immediate effects on staff and operations. The announcement highlights tensions between fiscal policy choices and the commercial position of businesses in the gambling sector, and is expected to prompt scrutiny from industry observers and policymakers alike.