Key Moments:
- Flutter has revealed plans to close Sky Bet’s Malta office, less than a year after relocating its commercial headquarters from the UK to Malta.
- Approximately 50 positions in Malta are at risk, with remaining staff members expected to transfer to Gibraltar as part of wider restructuring efforts.
- The Machine Games Duty (MGD) rate, previously feared to double, is now anticipated to increase from 20% to 25% in the upcoming Budget, offering some relief to industry operators.
Sky Bet’s Malta Operations Face Closure
Flutter has disclosed its intention to shut down Sky Bet’s Malta-based commercial headquarters that were relocated from the UK to Malta in November 2025. This move, which had been anticipated to deliver notable cost savings, is now being reversed as part of a recently unveiled cost reduction initiative. The restructuring puts around 50 Maltese roles in jeopardy, while other affected employees will likely move to Gibraltar, where Sky Gaming, another Flutter brand, is already established.
Cost-Cutting and Restructuring Details
The announcement came shortly after Flutter introduced a cost-saving program that could impact up to 1,400 positions company-wide. As part of the changes impacting Malta, SBG Sports Limited, the Maltese entity of Sky Bet, is also set to be wound down. These actions follow a period of heightened cost pressures, attributed by Flutter to tax changes introduced in the UK’s Autumn Budget the previous year.
Tax Headwinds and Industry Response
The UK government’s updated taxation policy has played a significant role in these developments, prompting not only the initial headquarters move to Malta in 2025, but also its reversal. Meanwhile, the sector has been apprehensive about potential further tax hikes. Almost 100 Labour MPs recently endorsed an initiative to increase Machine Games Duty (MGD) on Category B gaming machines.
| Proposed MGD Rate | Annual Revenue Projections (£ millions) |
|---|---|
| 40% | 275 – 458 |
| 25% (Now Expected) | Not specified |
Although initial proposals called for a doubling of the MGD rate from 20% to 40%, recent reporting from The Times has indicated the increase will most likely be a more moderate rise to 25% in the forthcoming Budget. Industry representatives have viewed this as a welcome development, as earlier warnings suggested steeper increases could have far-reaching negative implications, including the closure of up to 2,900 betting shops, loss of over 21,000 jobs, and diminished funding for British racing.
Industry Feedback on Job Losses and Taxation
The news of Flutter’s job cuts has sparked further concern. BGC chief executive Grainne Hurst stated, “another devastating blow to workers and families across our sector, and further evidence of the real-world consequences of the government’s tax rises.”
She continued, “The warnings could not be clearer. Businesses are already cutting jobs, closing betting shops and scaling back investment. Further tax rises will only accelerate that damage, putting thousands more jobs at risk, threatening high streets and handing an advantage to the unsafe, unregulated illegal gambling market.”
She concluded, “These are not just numbers. They are people facing uncertainty over their livelihoods as major British employers are forced to make painful decisions in response to mounting tax pressures.”
- Author
Daniel Williams
