Ladbrokes-owner Entain confirms 400 layoffs with warning over proposed Machine Game Duty hike
CEO Stella David has urged Prime Minister Andy Burnham to consider the consequences of more tax rises.
Key takeaways:
- The Ladbrokes and Coral owner plans to axe around 400 customer care roles worldwide, equal to 20 per cent of its 2,000‑strong team.
- Operations across 11 countries may be affected, but the company hasn’t confirmed how many roles will be cut in each country.
- The move follows April’s Remote Gaming Duty hike in the UK. Entain warns that any more tax rises could lead to more cuts.
- Rivals are also trimming costs. Flutter plans to close up to 100 Paddy Power shops, Evoke up to 200 William Hill outlets, Betfred 132 shops, and Bet365 has announced 340 job cuts.
UK.- Entain, the owner of Ladbrokes and Coral, has confirmed plans to cut around 400 jobs worldwide in customer care as it seeks to offset the impact of higher UK taxes. It’s warned that any further gambling tax increases, such as the proposed Machine Games Duty rise, could put more jobs at risk.
The latest announcement comes just two months after the news that Entain would cut 500 jobs across product, technology and corporate functions globally. The new layoffs would represent about 20 per cent of the company’s 2,000-strong customer care workforce. Currently subject to consultation, they’re expected to affect operations across 11 countries: the UK, Austria, Bulgaria, Brazil, Gibraltar, India, Ireland, the Philippines, Portugal, Spain and Uruguay. The company has not specified how many UK roles could be lost. It expects to conclude the consultation process by November,
The group, which also owns Sportingbet, said the changes are designed to help it cope with an increasingly challenging operating environment following April’s increase in Remote Gaming Duty in the UK to 40 per cent. The tax rate on online sports betting will rise to 25 per cent from April 2027, and the government is said to be considering a proposal to double land-based Machine Games Duty in the Autumn Budget.
In a statement, Entain chief executive Stella David said: “The proposed changes are being made to ensure our business remains competitive, financially resilient and well positioned for the future as our sector faces an increasingly challenging operating environment. This decision has not been made lightly, and our immediate priority is to support those of our colleagues who may be impacted through this transition.”
The company has stepped up its lobbying efforts ahead of the Autumn Budget. In a letter dated September 11, David urged Prime Minister Andy Burnham to consider the consequences of a substantial increase in Machine Games Duty for both employees and local communities.
She said that doubling the standard rate of machine games duty to 40 per cent would add around £100m to the annual cost of running its UK retail business. David warned that businesses were already struggling to absorb recent tax increases, writing: “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.”
Citing an independent study commissioned for the Betting and Gaming Council, she said a doubling of the duty could result in 1,470 betting shop closures and the loss of 15,900 jobs.
“These are not theoretical efficiencies in a financial model,” David said. “They are people losing their jobs and communities losing long-established high-street businesses.”
She warned that high-street and part-time workers would be particularly vulnerable. Entain employs around 13,000 people in the UK, including more than 12,000 staff across its 2,300 Ladbrokes and Coral betting shops.
“Half of our retail colleagues are women; 52 per cent work part-time or flexible hours; and more than one in five (2,570) are aged under 25,” David said in the letter.
“We are not asking to be insulated from taxation. Indeed, Entain is one of the UK’s top 20 taxpayers. However, this would also come on top of substantial tax increases already imposed on the sector,” she cautioned.
The wider gambling sector has also been trimming costs. Flutter recently announced plans to close up to 100 more Paddy Power shops in the UK and Ireland by the end of the year, with 400 jobs at risk.
In March, Evoke revealed plans to close up to 200 William Hill betting shops, with reports suggesting up to 1,500 employees could be affected. Betfred plans to close 132 shops, affecting more than 600 employees. Most recently, Bet365 said it would cut 340 jobs, including around 300 in Stoke-on-Trent.
