Flutter Boosts Casino Revenue in UK but Tax Hit Cuts Profit

Flutter's third-quarter results showed online casino revenue in the UK and Ireland rising to $540 million. Sports betting revenue fell 6% to $309 million.

Profit moved in the opposite direction. International revenue was flat, while the division's earnings dropped sharply. The company blamed high gaming duty in the UK. Cost savings in the UK, Ireland and Brazil offset part of this impact.

Remote gaming duty rose from 21% to 40% in April 2026. When the budget was announced, Flutter had estimated that the new taxes would reduce 2026 adjusted EBITDA by about $320 million before mitigation. In April 2027, a 25% remote betting rate will take effect, and Flutter estimates it will add a $540 million burden to 2027 adjusted EBITDA.

Group revenue rose 2% to $3.87 billion, while adjusted EBITDA fell 25% to $360 million. The loss for the three months ended September 30 grew 46% from $789 million a year earlier. The post-tax expense at Flutter Brazil, in which Flutter holds a 56% stake, was reflected in the company's share at $537 million. The company also recorded a $541 million goodwill impairment in Brazil. Operations in Brazil stopped in September, and Betfair's Brazilian activities closed. Betnacional remains the country's only brand.

Forecasts were lowered. The midpoint of adjusted EBITDA guidance fell $160 million to $2.495 billion. The midpoint of international EBITDA fell $115 million to $2.09 billion. Dan Taylor became group CEO on October 1, 2026, replacing Peter Jackson. The share buyback program has been halted indefinitely. Cash will be directed to organic investment and debt reduction.