Entain to Cut Hundreds of UK Jobs Amidst Tax Increases

Ladbrokes owner Entain is preparing to lay off hundreds of employees in the United Kingdom, attributing the job cuts to tax increases on the gambling industry. The company, which also owns the Coral brand, announced plans to reduce its workforce by up to 400 positions in customer care roles, aiming to maintain competitiveness in what it described as an "increasingly challenging operating environment."

These cuts follow previous announcements of 500 job losses in technology and corporate positions earlier this year. Entain employs over 13,000 people across the UK and operates approximately 2,300 betting shops.

The increased tax burden stems from recent changes enacted by the Labour party, which raised taxes on remote gaming from 21% to 40% and on online sports betting from 15% to 25%. This has led to broader concerns within the gambling sector, with rival Bet365 also announcing plans to shed 300 jobs at its headquarters. Since last year's budget, the industry has seen more than 4,500 roles eliminated.

Entain's chief executive, Stella David, has urged the government to reconsider proposals that would further increase the Machine Games Duty (MGD) to 40%. In a letter to the Prime Minister, David stated that doubling the MGD could add approximately £100 million to the annual operating costs of Entain's UK retail business. She warned that this could lead to up to 1,470 betting shop closures and approximately 15,900 job losses, potentially resulting in a net loss of around £120 million to the Exchequer.

David emphasized that these figures represent real job losses and the potential closure of established high-street businesses, rather than mere financial projections. She also cautioned that further tax increases could drive consumers towards illegal gambling, which would negatively impact tax revenues.

"We are not asking to be insulated from taxation," David stated. "A further doubling of Machine Games Duty would therefore add another significant cost to businesses already struggling to absorb major tax increases, stacking the odds against labour-intensive high-street operators and making it harder to sustain shops, jobs and investment in local communities."