Betting giant Entain confirms new cull as its CEO writes to Andy Burnham to try to head off new rumoured tax rise in next month’s Budget
The owner of Ladbrokes has announced another 400 job cuts as its boss wrote to PM Andy Burnham to issue a warning ahead of next month’s Budget.
Entain, which also owns Coral, confirmed plans to shed a swathe of customer service roles at 11 locations around the world. It is believed fewer than half will be in the UK.
The company blamed higher gambling taxes, but sources acknowledged the cuts were are also due to reducing costs after previous takeovers, along with the greater use of AI and changing customer habits.
Stella David, CEO of Entain 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.”
It came as she wrote to the PM to warn about the impact of any increase in machine gaming duty in the Budget at the end of October.
Previous Chancellor Rachel Reeves held the slot machine taxl at 20% in last year’s Budget, following heavy industry lobbying.
However, there have been reports that the Treasury is looking at the tax again with a possible increase to 40%. According to the FT, the jump would be targeted at betting shops and adult gaming centres. Pubs, bingo halls and seaside arcades would be excluded, it is claimed.
The betting industry is stepping up pressure on Chancellor John Healey by warning of the impact of hiking the duty on bookie shop based machines.
In her letter to the PM, Ms David wrote: “You have spoken about the ‘Makerfield Test’ – the principle that national policy should deliver for places and people that have too often been overlooked by Westminster. Entain has a long history on British high streets through our Ladbrokes and Coral brands. We employ more than 13,000 people in the UK, more than 12,000 of them in around 2,300 betting shops, including three in Makerfield.
“Many of those shops have been part of their local communities for decades, providing jobs, supporting local economies and offering familiar, staffed places where customers meet and interact.”
She claimed doubling the standard rate of machine gaming duty to 40% would add around £100million to the annual cost of running its UK retail business.
Citing research looking across the industry, she said it could lead to up to 1,470 betting shop closures and 15,900 job losses, and ultimately result in a net loss to the Exchequer of around £120million. “These are not theoretical efficiencies in a financial model,” Ms David added. “They are people losing their jobs and communities losing long-established high-street businesses.”