Entain (LSE:ENT), the owner of Ladbrokes, is set to eliminate approximately 400 customer care positions in response to rising gambling taxes in the United Kingdom.
The proposed cuts represent around 20% of the company’s total customer care workforce, which currently stands at 2,000 employees.
Entain has framed the restructuring as a necessary response to the financial pressure created by increased gambling duties imposed on betting and gaming operators.
Tax changes introduced in November saw gaming duties raised to 40%, with online sports betting levies climbing to 25%, significantly increasing operating costs across the sector.
Beyond the current round of cuts, Entain has signalled concern about the prospect of further taxation targeting gaming machines specifically.
In a letter dated 11 September, Chief Executive Stella David wrote directly to the UK government urging it to weigh the employment and economic consequences of a substantial increase in Machine Games Duty.
The company has warned that additional taxes on gaming machines could have a damaging effect on employment across betting shops and the wider communities they serve.
Media reports suggest that further increases in gambling taxes, including duties on gaming machines, are being considered ahead of the October Budget, though no additional increase has been officially confirmed.
The job cuts and Entain’s lobbying efforts come as the company works to quantify the full impact of existing tax changes while bracing for the possibility of further fiscal pressure from government.
Entain’s concerns reflect a broader tension across the UK gambling sector, where operators are increasingly caught between regulatory tightening and the economic realities facing their workforces and local communities.
The situation places Entain in a difficult position as it attempts to manage costs, protect margins, and engage constructively with policymakers before any further decisions are made on gambling taxation.
