Entain proposes 400 global job cuts as chief executive appeals to British PM over tax

Entain has begun consulting on the possible removal of about 400 customer-care roles globally as chief executive Stella David presses the British government to avoid another gambling tax increase.

The proposed cuts represent 20 per cent of Entain’s 2,000 customer-care positions and are spread across 11 locations, including Britain, Ireland and Gibraltar. Roles involving player safety are excluded.

Entain, which owns Ladbrokes and Neds in Australia, as well as Coral in the UK, said the restructure would simplify its customer-care model and help offset the impact of higher UK gambling taxes.

“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,” David said.

The proposal follows Entain’s removal of 500 positions across its product, technology and corporate operations in July. Bet365 last week announced 340 redundancies across its UK and European operations, citing tax costs and a competitive trading environment.

In a letter to prime minister Andy Burnham, David said doubling the standard rate of Machine Games Duty (MGD) from 20 per cent to 40 per cent would increase Entain’s UK retail costs by about £100 million a year.

An increase in MGD is reportedly under consideration ahead of the October budget but has not been confirmed.

David referred to EY analysis commissioned by the Betting & Gaming Council. The modelling estimated that a 40 per cent rate could result in up to 1,470 betting-shop closures and 15,900 job losses. Under its most severe scenario, the analysis projected a net £120 million loss to the Exchequer, with about £1 billion in stakes leaving the regulated retail market.

“I hope that, before any decision is taken on MGD, the government will look beyond the headline tax rate and consider the real-world consequences for the people whose livelihoods depend on these businesses and the communities in which they operate,” David wrote.

British racing could lose up to £40 million in levy and media-rights income, the modelling estimated. Entain said its Ladbrokes and Coral retail estate currently contributes about £50 million to British horseracing each year.

“The impact would go well beyond media rights and the levy,” David wrote. “Fewer shops and a weaker retail sector would also mean less sponsorship and commercial support flowing into horseracing, greyhound racing and the wider network of sports and communities that benefit from that investment.”

“Fewer viable shops would therefore have consequences not only for our own colleagues and high streets, but for jobs and livelihoods across both racing industries,” she wrote.

British Horseracing Authority director of communications and corporate affairs Greg Swift said the governing body was concerned about policies that could substantially reduce the number of high-street bookmakers.