Ladbrokes owner Entain set to axe a fifth of customer care jobs globally 

By Holly Williams, Press Association Business Editor 

Ladbrokes owner Entain has revealed around 400 jobs are being cut worldwide, including some in Gibraltar, as it blamed increased gambling taxes and warned more could be at risk amid speculation over plans to double machine games duty in the Budget. 

The group, which also owns brands including Coral and Sportingbet, said it had launched a consultation that could see a fifth of its 2,000-strong customer care jobs go across 11 countries as part of ongoing efforts to “address the impact of the UK’s increased gambling taxes”. 

It did not reveal how many jobs would go in Gibraltar and the UK as part of the consultation, which is set to end by November. 

Jobs will also go across its operations in Austria, Bulgaria, Brazil, India, Ireland, Philippines, Portugal, Spain and Uruguay. 

The betting giant’s chief executive Stella David has written to Prime Minister Andy Burnham, warning over further jobs pain in the sector if plans to double machine games duty are carried out. 

She 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 comes just two months after Entain reportedly confirmed 500 jobs were being cut worldwide impacting product technology and group corporate roles. 

The company has previously cautioned that new UK gambling taxes are set to have a “massive impact” worth around £250 million. 

The rate of remote gaming duty increased from 21% to 40% from the start of April, while a new rate of general betting duty will also be introduced next year, and speculation is mounting that Chancellor John Healey is considering hiking machine games duty in next month’s Budget. 

The Prime Minister also revealed plans last month to give councils more powers to stop betting shops opening in local communities. 

In her letter to Mr Burnham, Ms David said: “Doubling the standard rate of machine games duty to 40% would add around £100 million to the annual cost of running our UK retail business.” 

She said a recent independent report commissioned by the Betting and Gaming Council suggested the move could lead to up to 1,470 betting shop closures and 15,900 job losses across the sector. 

Ms David said: “These are not theoretical efficiencies in a financial model.” 

“They are people losing their jobs and communities losing long-established high-street businesses.” 

The group said high-street and part-time jobs would be most at risk. 

Entain employs 13,000 people in the UK, including over 12,000 across its 2,300 Ladbrokes and Coral betting shops. 

“Half of our retail colleagues are women; 52% work part-time or flexible hours; and more than one in five (2,570) are aged under 25,” Ms 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. 

Its rivals have also been slashing costs to offset higher taxes. 

William Hill owner Evoke said over a fifth – 278 – of its shops had closed in the past year, with around 200 shutting in May alone amid efforts to lower costs in the face of the tax hit.