Entain, owner of the Ladbrokes brand, has recently announced that it plans to cut 400 more jobs in the UK due to increased taxes in the gambling sector. This decision is made as the gambling industry faces numerous challenges while trying to maintain its competitiveness.
Impact of New Taxes
Entain stated in a statement that this job reduction is due to the increase in online gaming tax from 21% to 40% and the increase in online sports betting tax from 15% to 25%. Rachel Reeves, the former Treasury Minister, approved these tax changes in her latest budget.
Stella David, CEO of Entain, stated that this decision was "not made lightly" and comes after the company previously planned to cut 500 jobs in technology and administrative sectors. These reductions follow additional annual costs of £150 million this year and another £100 million in 2027 due to tax increases.
Challenges Facing the Gambling Industry
This news comes as just weeks ago, Bet365 also announced plans to cut 300 jobs at its headquarters in Stoke-on-Trent. The company employs a total of 5,500 people, and since the approval of last year's budget, over 4,500 jobs have been lost in this industry.
Industry leaders are concerned that if this trend continues, more shops will close and more jobs will be lost. Andy Burnham, the Mayor of Manchester, has fueled concerns with proposals to increase taxes on gaming machines. He has compared these types of shops to vape shops and businesses linked to organized crime.
Stella David wrote to the Prime Minister requesting the cancellation of the increase in gaming machine tax to 40%, warning that this decision could lead to the closure of up to 1,470 betting shops and the loss of 15,900 jobs. She emphasized that these numbers are not just theoretical but represent real people and communities that will be lost.
The group has recently been removed from the FTSE 100 list, and its stock value has decreased by 40% over the past year.
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