Posted on: July 29, 2022, 07:16h.
Last updated on: July 29, 2022, 12:19h.
Gaming giant Flutter Entertainment is going through a significant transition. It has recently said goodbye to two of its primary executives, and will now have to do the same with a number of employees in the UK and Ireland.
Flutter, despite having companies like PokerStars, Paddy Power, SkyBet, and more in its portfolio, has watched as its stock price lost more than 50% since last September. Coincidentally, that drop began just after the company implemented lower loss limits in the UK and Ireland for the under-25 consumer segment.
In order to reduce costs and shore up its business operations, the company announced that it will eliminate certain redundant positions in the UK and Ireland. However, it didn’t specify how many positions are at risk.
Not the End of the Road
For those employees who suddenly find their positions on the chopping block, there’s no need to start worrying yet. Flutter intends to offer many of them positions elsewhere in the company, which means the company’s overall workforce won’t face a significant reduction.
Flutter is reportedly discussing possible cuts already with some of its personnel. It said in a press release that it has contacted them and is helping them through the transition period.
While we have sought to minimize the impact this will have on our colleagues, with most employees affected being redeployed into alternative or newly created roles, the proposals may lead to a small number of job losses,” said a Flutter spokesperson.
In addition to any revenue adjustments that resulted from the new loss limits, Flutter is also suffering from changes in the overall gaming landscape in the UK and Ireland. There, it has lost 20% of its online revenue over the last year, while other regions, such as the US, have improved by as much as 40%.
In addition, to mitigate the UK’s gambling reforms, the company has had to make adjustments. There are rumors of the government introducing a maximum stake of £2 to £5 (US$2.43 to $6.07) for online casinos, which would significantly impact operators’ revenue.
Those rumors are not confirmed. However, there is also discussion about the introduction of monthly affordability limits. This will also curb spending and, subsequently, operator revenue.
The gaming industry will have to continue to wait to find out what the government plans. Its white paper on gambling reform won’t likely arrive until September at the earliest. That is over a year later than originally planned.
New Era, New Leadership
With everything going on in the gaming ecosystem in the UK and Ireland, it isn’t surprising that some people would call it quits. Recently, Paddy Power CEO Victor Corcoran and Flutter UK and Ireland CEO Conor Grant both stepped down.
Corcoran was the first to go. He left in May, quietly packing up his desk and handing over the keys to the castle. There was virtually no public discussion about the departure, although Flutter finally confirmed it several weeks ago. Taking his place is Dave Newton, who is also the company’s chief commercial officer.
Paddy Power has already closed several land-based betting shops, with more cuts coming. This is a direct result of an increase in bettors’ preference for online alternatives.
Grant is going to leave by the end of the year. His departure received more fanfare, with Flutter saying in a press release that he wants to spend more time with his family. Taking his place will be Ian Brown, formerly a high-ranking executive with the online travel agency Booking.com.
Brown’s background doesn’t include leadership in the gaming industry. However, it does include substantial experience in digital operations. Tapping him as the new head of Flutter UK and Ireland may be an indication of where the gaming industry is heading.