Entain Begins Consultation on Customer Care Cuts Impacting 400 Roles as UK Tax Rates Climb

Entain, owner of Ladbrokes, Coral and BetMGM, has opened a consultation on the elimination of around 400 customer care positions. The process affects roughly 20% of the company’s 2,000 customer care roles. Stella David, Entain Chief Executive, stated the moves are designed to ensure the business remains competitive, financially resilient, and well positioned for the future as the 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,” David said.

Tax Increases as Direct Driver of Headcount Review

The restructuring is linked to higher UK gambling taxes. Last November gaming duties rose to 40% and online sports betting levies to 25%. In a Sept. 11 letter to Andy Burnham, shared with Reuters, David warned that doubling Machine Games Duty from 20% to 40% would add about £100 million ($134.48 million) to the cost of running Entain’s UK retail business.

Entain said such an increase could result in 1,470 betting shop closures and 15,900 job losses across the UK. The Social Market Foundation estimates that doubling the duty could raise an additional £275 million ($369.82 million) to £458 million ($615.93 million) from category B machines, on top of the £600 million they currently pay.

Performance Figures and Index Transition

For the six months to the end of June Entain reported £479 million ($644.17 million) in underlying operating profit, 2% below the previous year but ahead of investor expectations. The company attributed the performance partly to cost cuts and the soccer World Cup rush. Entain employs more than 28,000 people worldwide and is due to move from the FTSE 100 to the FTSE 250 on 21 September.

As first reported by Yogonet International, the consultation underscores the direct transmission from tax policy to operator cost base and staffing levels. The October budget will mark whether the further Machine Games Duty rise materialises, a development that would amplify pressure on labour-intensive retail operations already absorbing prior rate hikes.

Reporting: Yogonet International

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