Flutter Entertainment, owner of Paddy Power, Betfair and Sky Bet, is abandoning the London Stock Exchange, citing poor trading levels, high costs and red tape, in a move that critics say delivers a damning verdict on the business environment Chancellor Rachel Reeves claims she is improving.
The decision will fuel concerns about Britain’s competitiveness under Labour, with critics arguing that rising costs, heavier regulation and increasing burdens on employers are making the UK a less attractive destination for business and investment.
The gambling giant has confirmed that its shares will stop trading in London at the end of July, leaving New York as its sole stock market listing.
The Dublin-headquartered gambling giant, which also owns PokerStars and FanDuel, said the move followed a review of its position on the London market.
Significantly, Flutter cited poor trading levels, high costs and red tape among the reasons behind its decision to quit London.
Those concerns strike at the heart of the debate surrounding Britain’s economic future.
While Flutter first shifted its primary listing to New York in 2024, before Labour entered government, its decision to leave London altogether comes as businesses face rising employment costs, increasing regulation and growing concerns about Britain’s ability to compete with faster-growing economies.
The departure is another blow for Chancellor Rachel Reeves, who has repeatedly promised to boost growth and make Britain a more attractive place for investment. Instead, another major international company has concluded that New York offers a better environment for investors than London.
Flutter is far from alone.
Building materials giant CRH, financial technology company Wise, construction equipment specialist Ashtead, investment firm Petershill Partners and pharmaceutical business Indivior have all either moved their primary listings overseas or abandoned the London market in recent years.
The steady flow of departures has fuelled fears that London is losing ground to international rivals, particularly New York, which continues to attract some of the world’s biggest businesses and investors.
Critics argue that Labour’s economic policies risk accelerating that trend.
Since entering office, the Government has increased employer National Insurance contributions, expanded workers’ rights legislation and introduced additional costs for businesses already grappling with weak economic growth and stubbornly high operating expenses.
Business groups have repeatedly warned that companies need lower costs, lighter regulation and greater certainty if Britain is to remain internationally competitive.
Flutter’s own explanation for leaving London will therefore raise uncomfortable questions for ministers. When one of the world’s largest gambling companies points to high costs and red tape as reasons for leaving, opponents argue it reflects concerns being voiced across much of the private sector.
The wider issue extends beyond the stock market.
When major firms choose to list elsewhere, Britain risks losing influence as a global financial centre. Over time, that can mean less investment flowing into UK markets, fewer high-value jobs in the City and lower returns for British pension funds.
Companies such as Flutter will continue to operate in Britain and pay taxes on their UK activities. However, every major departure weakens London’s standing and raises questions about where future investment will go.
For many critics, the trend is becoming impossible to ignore. If successful companies increasingly see America as the better place to raise capital, attract investors and grow their businesses, Britain risks becoming less competitive on the global stage.
Flutter reported revenues of $4.3 billion during the first quarter of the year, an increase of 17 per cent compared with the same period last year, driven by continued growth in online gambling.
Yet despite Rachel Reeves’ efforts to encourage investment in British markets, the company has now delivered a stark verdict on London.
At a time when Labour insists Britain is open for business, another major company has chosen to take its future elsewhere.
