Entain plans to cut approximately 400 Customer Care jobs as CEO Stella David expresses concerns about potential gambling tax increases impacting the company’s UK betting shop estate.

Ladbrokes and Coral owner, Entain, confirmed the reduction of approximately 400 Customer Care roles out of 2,000. These roles cover various areas such as Customer Protection and Resolution, Risk and Payments, Service Delivery, Planning and Insight, and Business Operations.

David mentioned that these job cuts are necessary for the business to remain competitive, financially resilient, and well-prepared for the future.

This announcement comes as David addressed UK Prime Minister Andy Burnham regarding proposals to raise Machine Games Duty (MGD) to 40%, which currently ranges from 5% to 25%.

In the letter, David emphasized the need to consider the broader impact of such tax increases on betting shops, employment, and investment.

The UK’s retail betting sector faces further challenges as Flutter announced reviews of Paddy Power shop closures along with job cuts in the hundreds. Evoke and Betfred also announced their plans to shut down multiple shops earlier this year.

Entain Warns Over £100M Tax Impact

David highlighted the potential additional £100 million annual cost to Entain’s UK retail operations if the standard MGD rate is raised to 40%. She expressed concerns about the impact on businesses already grappling with significant tax increases from previous budgets.

David emphasized that another tax increase would make it difficult for high-street operators to sustain their shops and workforce.

The Social Market Foundation estimated that doubling duty on Category B machines could generate up to £458 million in revenue.

According to the Financial Times, UK Chancellor John Healey is exploring targeted increases for betting shops and gaming centers while sparing lower-stakes machines in other venues.

EY and BGC Forewarn of Shop Closures

David referenced EY’s research commissioned by the Betting and Gaming Council (BGC), which projected potential consequences of a 40% MGD rate, including shop closures, job losses, and a significant net loss to the Exchequer.

She cautioned about the possibility of customers turning to unlicensed operators due to increased taxation, emphasizing the importance of keeping gambling within the regulated sector for community welfare and public finances.