Flutter Entertainment is set to close Sky Bet’s Malta headquarters less than a year after relocating the brand’s commercial operations from the UK. The company will transfer Sky Bet’s operations to Gibraltar, where its sister brand Sky Gaming is already based, as part of a broader restructuring of Flutter’s UK and Ireland business.
Sky Bet Operations Move to Gibraltar
The closure of the Malta office will see Sky Bet’s activities consolidated with Sky Gaming, which moved its headquarters to Gibraltar in 2024. Sky Bet had only shifted its commercial base to Malta in November 2025, aiming for significant annual cost savings. However, the Maltese entity, SBG Sports Limited, is now expected to be wound down. Around 50 Malta-based employees are facing redundancy, while remaining staff are expected to relocate to Gibraltar. Flutter will maintain a presence in Malta, with approximately 500 staff working in other operations, including Betfair International.
Restructuring Driven by UK Gambling Tax Increases
The decision to close the Malta office comes as Flutter seeks to reduce operational costs in response to substantial increases in UK gambling duties. Recent tax hikes include an increase in Remote Gaming Duty from 21% to 40% in April 2026 and a planned rise in General Betting Duty from 15% to 25% in April 2027. Flutter has indicated that these changes could reduce its adjusted EBITDA by hundreds of millions of dollars in 2027. The company recently announced that up to 1,400 jobs could be at risk across its UK and Ireland workforce, which numbers around 9,000 employees.
Implications for the Industry
For operators, affiliates, and suppliers, the consolidation of Sky Bet and Sky Gaming in Gibraltar signals a shift towards more cost-efficient structures in response to regulatory and tax pressures. The closure also highlights the potential volatility of operational bases in the face of changing fiscal environments. Affiliates may see changes in partnership structures, while suppliers could experience shifts in procurement and service arrangements as operations centralize. Regulators may also take note of the impact that tax policy changes have on employment and market structure.
Further Uncertainty Ahead of UK Autumn Budget
The restructuring comes as the industry awaits the UK Autumn Budget, with further tax changes possible. Reports suggest that Machine Games Duty could rise from 20% to 25%, though this is less than some initial proposals. Industry bodies have warned that continued tax increases could lead to more redundancies, closures, and reduced investment in the sector.
Key takeaways
- Flutter will close Sky Bet’s Malta office and consolidate operations in Gibraltar.
- The move is part of a wider cost-reduction effort following UK gambling tax hikes.
- Around 50 Malta-based employees face redundancy; others may relocate.
- The industry faces continued uncertainty ahead of the UK Autumn Budget.